FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Brisbane Small Business Loans
Let me know about the Brisbane Small Business Loans
Brisbane unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
It is possible to apply to get the Small Business Loan in under 10 minutes by phone. You will receive a same day response and the money could be in your account in 24 hours. Traditional company loans are based on an interest rate per annum along with other charges and fees. Our company loan is a loan that is priced upfront therefore you’ll know in advance the total amount payable including any fees, charges or charges. This is then divided into weekly or daily installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company need, such as the management of cash flow, business remodels and marketing for purchasing inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About the Larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly, depending on your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funds be used for?
A Business Loan of a larger size can be used to fund almost any business purpose including company improvements, purchasing inventory or new equipment or as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This can be done as a result of an charge over assets and can include the registration of this through the PPSR or making as a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature, rather than specifying the security of a specific asset. The person who signs the ensure is personally accountable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR allows the priority of personal property assigned in accordance with the date on which a registration of a security interest.
A caveat is a legal document that is filed to offer the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of more than $250K we may be able to provide an initial pre-approval that will help smooth out the process. We could be able to apply for this without a credit verification and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial well-being questions. This is neither an offer nor a guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you receive could be on different conditions.
Application process
Do I qualify for funds?
You can apply for an 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)
- you must demonstrate at minimum 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a couple minutes, and a dedicated company lending specialist will be in touch to guide you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statement, last 2 years finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually offer a response in one hour if you apply at standard business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statement, we’ll provide an answer within just one business day.
For Larger Business Loans ($100K and up) we may be in a position to provide you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some agreements have been approved in just 24 hours.
The quickest method is to ensure you apply during normal company hours. Also, permit us to use the modern bank verification link to instantly verify your bank account information online. If you decide to send us documents from your account accounts, it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually offer a response in one hour – provided you make your application in normal business times and let us utilise 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 the decision in just an business day.
If you are applying for Larger Business Loans ($100K and up) we could be likely to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some deals have been approved in the space of 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, allow us to use our modern bank verification link to confirm your bank details online. If you choose to upload duplicates of your banking statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a certain amount we will consider a number of factors that determine how much we can lend you health of your company as well as the amount of repayments your company can afford. The total amount of your loan will depend on the specific circumstances the business.
When you apply for a set amount, we will consider a number of variables to assess how much we can lend you such as health of your business and the extent of the repayments your business will be able to support. The total amount of the loan will be determined by the particulars that are unique to your business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to make an application for our company credit, we’ll assess the risk assessment for your business and offer an individualised proposal that includes the amount of the loan, the duration and interest rates. The business loan is an upfront priced loan and you’ll be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I will be charged?
Business loan interest rates depend on a variety of factors like the amount of money borrowed, the company assets the funds will be used for in addition to the industry that the business operates in, how long the business has been operating for, how long the business has enough cash flow to cover the loan, and the overall health or financial standing of the business.
What are the cost?
There aren’t any hidden charges with our company loans, and you’ll be aware of the amount it is that you need to pay and when, from the day you sign up. There’s no compounding interest and no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You are able to make an application for loans without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan earlier?
You can choose to repay all of your loan early at any time.
If you are deciding to pursue this option, please contact our helpful company loans experts. They will provide you with details for repayment and an early payout figure. This will be calculated as the total of the remaining principal amount and the accrued interest up to the time of early payment in addition to 1.5 percent of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and being transparent about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to customer security and security. We employ an exceptionally sophisticated bank verification system to instantly verify your bank account details online, allowing us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of an asset they own to obtain the funds for a loan. The asset can be either a personal asset like the family home, or it could be a business asset such as a vehicle or piece of equipment.
The vast majority of the lenders not just the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan then the asset could be transferred to the lender. In essence, it is the process of securing additional financing using the value of what you already have.
Are I require security to get an company loan?
For loans that exceed $150K, the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need the personal guarantee. If you adhere to the terms of your loan (as stipulated in the loan contract) the security of assets will never be needed. For loans of over $150,000 generally there is an individual guarantee and security in the form charges on assets.