FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The South Brisbane Small Business Loans
Let me know what you think of the South Brisbane Small Business Loans
South Brisbane unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
It is possible to apply to this Small Business Loan in under 10 minutes online or by phone. You will receive an immediate response, and funds may be in your account in 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. Our business loan is an upfront priced loan so you will be aware in advance of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business use, including managing cash flows, business improvements, advertising to purchase inventory, new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
About Larger South Brisbane Business Loans
What is the Larger South Brisbane Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to be operating for at least three years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can the funding be used for?
A large business loan can be used to fund almost every business need, including company improvements, purchasing equipment or inventory or as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It is usually as a result of an charge over assets and can include registering this on the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally based rather than specifying security over an asset. The person signing the guarantee is personally liable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR grants preference over private property assigned according to the date the security interest was registered.
A caveat is a legal document filed to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250K, we may offer an initial pre-approval to simplify the process. We could be able to make this decision without a credit check and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial health questions. It’s not an offer of credit or guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer you may receive may be subject to different terms.
The application process
Do I qualify for funds?
You may apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Complete the online form in just a few minutes, and a dedicated company credit specialist will contact you to guide you through the process.
To apply for up $100,000, you’ll need ID details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent, 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour if you submit your request within quality company time and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements we can provide an answer in just 1 business day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be capable of provide you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The quickest method would be to make sure you apply during standard business hours, and allow us to use our modern bank verification link to instantly verify your bank account information online. If you decide to send us duplicates of your banking statements it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour – as long as you submit your request in standard business time and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statements, we are able to provide a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to offer you with conditional pre-approval in around six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Some offers have been approved within just 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours and let us use the advanced bank verification system to confirm your bank details online. If you opt to upload the copies of bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of factors in order to assess your health for your business and the extent of the repayments your business will be able to support. The total amount of your loan will be contingent on the specifics that are unique to your business.
When you submit an application for a specific amount we look at a range of elements to determine the health that is your company and the amount of the repayments your company can afford. The total amount of the loan will be determined by the particulars for your company.
Fees & repayments
How much should you charge for a company loan?
When you request our business loans, we will assess the risk assessment of your company and provide you with a customised proposal that includes the amount of loan, the term and the interest rates. A company loan is an upfront cost loan which means you know the exact amount payable including any charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for company loans rates depend on a variety of factors like the amount of money borrowed, the business assets the funds are used to purchase, the industry the company operates in, how long the business has been operating as well as whether the company has sufficient cash flow to cover the loan, and general well-being or financial standing of the business.
What are the costs?
There are no hidden costs with our company loans. You’ll know exactly how much you need to pay and at what time, from the first day. There’s not any compounding interest and there are no additional charges (as long as you make your payments punctually).
We do not charge an application fee. You are able to apply for a loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the total amount of your advance loan at any time.
If you choose to do this please call our helpful business loan specialists. We will provide you with details on repayment as well as an early payout amount. The figure will be calculated as the sum of the principal balance and the accrued interest up to the time of the early payout, plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss due dates and also to be in line your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about the ways we gather the information we collect, use, share and protect your information, is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We employ a highly sophisticated banking verification system to instantly verify your bank account details online to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a company owner borrows from the assets they have to secure the funding. The asset may be an asset belonging to the personal, like the family home or it could be a company property like a truck or piece of equipment.
The vast majority of the lenders even the big banks, tend to secure loans against assets. If you have trouble paying back the loan then your assets could be offered for sale by the lender. In essence it’s means of securing new financing using the worth of the asset you already have.
Do I require security to get an business loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds, however we do require the personal guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract) and you are able to meet your obligations, asset security is not required. For loans of over $150,000 typically, you will need the option of a personal ensure and security in the form of a charge over assets.