FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Brisbane Small Business Loans
Let me know about the Brisbane Small Business Loans
Brisbane unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
Apply to get this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and the money could be in your account within 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. The company loan is a pre-paid loan so you will know in advance the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company reason, such as control of cash flow business renovations, marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan is not available for personal reasons.
About Larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your business needs to have been operating for a minimum of 3 years and generate an annual revenue of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly any business reason, such as business renovations, to purchase new equipment or inventory for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It’s by taking a charge on assets and can include registration with the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally in nature rather than specifying the security for a particular asset. The person who signs the guarantee is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR gives preference over private property assigned in accordance with the date on which a security interest was registered.
Caveats are legal document filed to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger company loans that is greater than $250K we can offer an initial pre-approval to ease the process. It is possible to get this done without a credit verification and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being questions. It is not an offer or guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could be based on different terms.
Application process
Can I be eligible for funding?
You may apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in few minutes and a dedicated company loan specialist will call you to assist you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, plus interim current financial year financials as well as Aged Payables and Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we can often offer a response in one hour – as long as you submit your request within quality company hours and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statement, we’ll provide the decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be in a position to offer you with a conditional pre-approval within about 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be quicker based upon the circumstances for each application. Some agreements have been approved in the space of 24 hours.
The quickest method would be to make sure you apply during normal company hours. Also, allow us to use our advanced bank verification system link to verify your bank information online. If you opt to send us the copies of bank accounts, it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer in just one hour if you submit your request within standard business hours and you allow us to use the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements, we will be able to offer the decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be in a position to offer you with a conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based on the circumstances of each application. Certain transactions have received approval within just 24 hours.
The fastest way would be to make sure you apply during normal business hours, and permit us to use the sophisticated bank verification link to instantly confirm your bank details online. If you decide to send us the copies of bank accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount, we look at a variety of factors to determine how much we can lend you well-being of your business and the level of repayments that your business can afford. The amount you receive from your loan will depend on the specific circumstances for your business.
If you apply for a set amount, we will consider a number of elements to assess your well-being of your business as well as the amount of repayments that your business will be able to support. The amount you receive from your loan will depend on the particulars of your business.
Fees & repayments
How much do you charge for the cost of a company loan?
When you request business loans with us business financing, we will assess the risk profile for your company and offer you with a customised offer, including the loan amount, the terms and interest rates. The business loan is an upfront-priced loan therefore you will be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Interest rates for company loans rates differ based on various factors including the amount borrowed, what company assets the money are used to purchase as well as the field the business is in, how long the company is in operation as well as whether the company has enough cash flow to support the loan, and the overall well-being as well as creditworthiness company.
What are the charges?
There are no hidden costs for our business loans, and you’ll be aware of the amount you’ll be required to pay and when, from the first day. There’s no compounding and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan in advance?
You can choose to repay the entire amount of the loan at any point in time.
If you decide to do this please contact our helpful company credit professionals. They will provide you with the details of your repayment along with an early payout estimate. This is calculated as the total of the remaining principal amount and accrued interest to the time of the early payout and 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To ensure you do not miss due dates and also to be in line your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear how we collect, use, exchange and protect your information, is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to customer security and security. We use an advanced bank verification system that allows you to instantly verify your bank account information online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner borrows from an asset they own to secure the funds for a loan. The asset can be either a personal asset like the family home, or a business property like a truck as well as a piece of machine.
The majority of lenders, including the banks with the biggest size, prefer to make loans secured by assets. If you’re struggling to pay back the loan then the asset might be offered for sale by the lender. In essence it is a way of securing additional financing making use of the value of what you already own.
Should I require security to secure a company loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds but we do require a personal guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract document), asset security will never be required. For loans of over $150K generally there is the option of a personal guarantee and security in the form charges on assets.
