FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Upper Brookfield Small Business Loans
Tell me more about Upper Brookfield Small Business Loans
Upper Brookfield unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
Apply to get your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and have the funds in your account within 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. The company loan is a pre-paid loan therefore you’ll know ahead of time the total amount payable including any fees, interest or charges. This is then broken down into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business need, such as cash flow management, company renovations, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal purposes.
About larger Upper Brookfield Business Loans
What is the Larger Upper Brookfield Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your company needs to have been operating for at least three years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used for almost any company use, including company renovations, purchase of inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This can be done by taking a charge on assets, which could also be registered on the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally in nature rather than specifying the security for a particular asset. The person who is signing the ensure is personally responsible if the company 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 records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR gives preference over private property granted according to the date the security interest that is registered.
Caveats are legal form of document to offer the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger business loans that is greater than $250K it is possible to offer a preliminary pre-approval to help smooth out the process. It is possible 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, which involves answering a couple of financial well-being checks. It’s not an offer of credit or guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer you might receive could be based on different conditions.
The application process
Can I be eligible for funding?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and an experienced company lending specialist will be in touch to assist you.
To apply for up to $100,000 you’ll need the right identification documents (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details for application including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) We can usually offer a response in one hour – as long as you make your application at quality business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements , we are able to offer an answer in just an company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be able to offer the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Certain offers have been approved within 24 hours.
The quickest way to apply can be make sure you apply during normal business hours and let us use the advance bank verification link to verify your bank account information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour – provided you submit your request during standard business time and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can offer a decision in just an business day.
For the Larger Business Loans ($100K and up) we could be in a position to offer you with conditional pre-approval within 6 hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some offers have been approved in less than 24 hours.
The fastest way can be ensure you apply during standard business hours. You can also allow us to use our advanced bank verification system to instantly verify your bank account information online. If you send us duplicates of your banking statements it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of aspects that determine the health of your company and the level of payments your business is able to afford. The total amount of the loan will be determined by the particular circumstances for your company.
When you make an application for a particular amount, we take into consideration a variety of aspects to assess the well-being that is your business and the amount of the repayments your company will be able to support. The total amount of your loan will be contingent on the specific circumstances the company.
Fees & repayments
How much do you charge for a company loan?
When you make an application for our business credit, we’ll assess the risk profile the business and offer an individualised proposal that includes the amount of the loan, the duration and interest rates. This company loan is an upfront cost loan therefore you will be aware of the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I will be charged?
Interest rates for company loans rates vary due to factors such as the amount that is of money borrowed, the business assets the money are used to purchase and the sector the company operates in, how long the company is in operation and in the event that the company has sufficient cash flow to support the loan, and the general well-being as well as creditworthiness business.
What are the costs?
There are no hidden fees for our business loans, and you’ll know exactly how much it is that you need to pay and when, from day one. There’s not any compounding interest and the loan comes with no additional fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan with without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of your advance loan at any time.
If you do decide to take this route, please talk to one of our helpful company credit professionals. The specialists will offer you with the details of your repayment and an early payout figure. This is calculated as the total of the principal amount remaining and any accrued interest at the time of early payout plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work with your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and safeguard your data, is of paramount importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to security for our customers and security. We employ an exceptionally sophisticated bank verification system link to immediately verify your bank account details online, allowing us to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner borrows from the assets they have to obtain a loan. The asset could be an asset belonging to the personal, like the family home or it could be a company asset such as a vehicle or other piece of machinery.
The majority of the lenders not just the big banks, tend to guarantee loans against assets. If you have trouble paying back the loan then your assets could be sold by the lender. In essence, it’s means of securing new financing using the value of what you already own.
Should I require security for an company loan?
For loans up to $150,000 no asset security is required upfront to access the money, however we require a personal guarantee. need a personal guarantee. If you adhere to the terms of your loan (as detailed in the loan contract) the security of assets will never be needed. For loans that exceed $150,000, generally, you can get a personal guarantee and security is provided in the form of the charge of assets.