FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Bahrs Scrub Small Business Loans
Let me know how you can avail the Bahrs Scrub Small Business Loans
Bahrs Scrub 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.
How is this Unsecured Loan different from the traditional business loan?
The application 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 the money could be available in just 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. Our company loan is an upfront priced loan and you’ll be aware of the total amount due, which includes any fees, interest or charges. Then, it is broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business need, such as the management of cash flow, company remodels and marketing to purchase inventory, new equipment, as general working capital and much more. The loan cannot be used for personal use.
About Larger Bahrs Scrub Business Loans
What is the Larger Bahrs Scrub Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range 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 calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to be operating for at least three years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funding be used for?
A Business Loan of a larger size can be used for almost any company purpose including business remodeling, buying equipment or inventory or as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This can be done in the form of a charge on assets, and may include the registration of this on the PPSR or making a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature, rather than specifying security over a particular asset. The person signing the ensure is personally responsible if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR grants priority over personal property to be granted in accordance with the date on which a security interest that is registered.
Caveats are legal document filed to offer the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan of $250K or more we can offer an initial pre-approval that will help simplify the process. We may be able to make this decision without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering some financial well-being checks. This is not an offer of credit or guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you receive could be subject to different conditions.
Application process
Are I eligible for funding?
You may be eligible for an business 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 for the unsecured loan $5K – $100K) or 3 years of continuous 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 expert in lending will be in touch to help you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s License) as well as an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank statements, IRD statement as well as the two most recent years’ financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) We can usually provide an answer in just one hour if you apply at quality company hours and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements , we are able to offer an answer in just the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be capable of provide you with pre-approval conditional to your application in about six hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some deals have been approved in the space of 24 hours.
The fastest way would be to ensure you apply during standard business hours, and let us use the advanced bank verification system to confirm your bank details online. If you decide to upload documents from your account statement, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within an hour – provided you apply during normal business times and permit us to use the bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements we can provide an answer within the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we might be in a position to provide the conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Some offers have been approved in the space of 24 hours.
The fastest method would be to ensure you apply during normal business hours and permit us to use the advance bank verification to verify your bank information online. If you decide to upload documents from your account statements, it will take a little longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of aspects for determining how much we can lend you health that is your business and the amount of the repayments your business is able to afford. The total amount of your loan will depend on the particular circumstances of your business.
When you submit an application for a set amount, we look at a range of elements to assess the health for your company and the level of repayments your business will be able to support. The total amount of your loan will depend on the specific circumstances the company.
Fees & repayments
How much should you charge for a company loan?
If you decide to apply for our company loan, we will assess the risk profile for your company and offer you with a tailored proposal that includes the amount of loan, the term and the interest rates. It is a business loan is an upfront priced loan which means you know the exact amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I pay?
Business loan interest rates differ based on various factors like the amount of money borrowed, the business assets the funds are used to purchase in addition to the industry that the business operates in, how long the company has been running as well as whether the business has enough cash flow to cover the loan, and also the general health or financial standing of the business.
What are the fees?
There aren’t any hidden charges with our company loans. You’ll be aware of the amount it is that you be required to pay and when, from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You are able to make an application for loans with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan earlier?
You may choose to pay back the entire amount of your advance loan at any time.
If you are deciding to take this route, please talk to one of our helpful business loan professionals. The professionals will provide you with repayment details and an early payout figure. The figure will be calculated as the total of the principal remaining and any accrued interest at the date of early payout in addition to 1.5 percent of the remaining principal as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align with your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being transparent about the ways we gather information, use it, and exchange it, as well as protect your information, is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We use an advanced bank verification system link to immediately verify your bank account details online to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a business owner uses an asset they own to get the funding. The asset can be an asset belonging to the personal, like the family home or an business asset like a truck or other piece of machinery.
The majority of lending institutions, including the banks with the biggest size, prefer to secure loans against assets. If you’re having trouble paying back the loan, then the asset might be taken over by the lender. In essence, it is the process of securing additional financing making use of the value of what you already own.
Should I need security for a business loan?
For loans of up to $150K, no asset security is required upfront to access the money However, we require a personal guarantee. require a personal guarantee. So long as you comply with your loan commitments (as detailed in your loan contract), asset security will never be needed. If you take out loans in excess of $150K generally, you are able to get the option of a personal guarantee and security that is in the form a charge over assets.