FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Bald Hills Small Business Loans
Tell me about the Bald Hills Small Business Loans
Bald Hills unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary company loan?
Apply for this Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and funds may be in your account in 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. We offer a business loan is a loan that is priced upfront therefore you’ll know in advance the total amount due, which includes any interest, fees or charges. This is then broken down into either weekly or daily repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company use, including the management of cash flow, company remodels and marketing to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
About Larger Bald Hills Business Loans
What is the Larger Bald Hills Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to have been in operation for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly all business reason, such as company renovations, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It’s in the form of a charge on assets and can include registration through the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to repay a loan which is generally based rather than specifying the security for a particular asset. The person signing the guarantee is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR permits the priority of personal property granted in accordance with the date on which a security interest has been registered.
Caveats are legal document that is filed to provide an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250,000 we may be able to provide an initial pre-approval in order to make the process. We could be able to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial well-being questions. It is not an offer or guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you receive could be on different terms.
The application process
Do I qualify for funds?
You may be eligible 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)
- you must demonstrate at minimum 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Complete the online form in just a few minutes, and a dedicated business credit specialist will be in touch to guide you.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent and 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.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically offer an answer within one hour – as long as you apply in quality business times and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements we can provide an answer within just one company day.
For Larger Business Loans ($100K or more) we could be able to provide you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some offers have been approved within 24 hours.
The fastest way is to ensure you apply during normal business hours, and let us use the advanced bank verification system link to instantly check your bank’s information online. If you choose to upload duplicates of your banking statements , it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we usually provide an answer within one hour, provided you apply in normal business time and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statement, we’ll offer an answer within the span of one business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of offer you with conditional pre-approval in about six hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Certain offers have been approved in 24 hours.
The most effective method is to make sure you apply during standard business hours and let us use the modern bank verification to verify your bank information online. If you opt to upload the copies of bank accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of aspects in order to assess how much we can lend you health for your company and the amount of the repayments your business can afford. The total amount of your loan will be contingent on the specific circumstances of your business.
When you make an application for a particular amount, we consider a variety of variables to assess how much we can lend you such as health of your company and the extent of the repayments your company can afford. The total amount of your loan will be determined by the particulars that are unique to your company.
Fees & repayments
How do you charge for a business loan?
If you decide to request our company credit, we will assess the risk profile for your company and provide you with a customised offer that includes the loan amount, the terms and the interest rates. A company loan is an upfront cost loan so you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates depend on several variables like the amount to be that is borrowed, what company assets the money will be used for as well as the field the business is operating in, how long the company is in operation and in the event that the company has enough cash flow to support the loan, and also the overall health or creditworthiness of the company.
What are the cost?
There aren’t any hidden costs with our company loans, and you’ll know exactly how much you be required to pay, and at what time, from the very first day. There’s no compounding and no extra fees (as as you make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay out the loan in advance?
You can repay the total amount of your loan early at any time.
If you do decide to pursue this option, please speak to our friendly business lending experts. They’ll provide you with the details of your repayment and an early payout figure. The figure will be calculated as the sum of the principal amount remaining and any accrued interest at the time of early payment plus 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as safeguard your data, is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We utilise a sophisticated bank verification system link to immediately confirm your bank account information online to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner utilises an asset that they own to make the funding. The asset could be a personal asset like the family home, or a business asset such as a truck or other piece of machinery.
The vast majority of lenders, not just the big banks, tend to guarantee loans against assets. If you have trouble paying back the loan, your asset may be taken over by the lender. In essence it is an opportunity to secure new financing by using the worth of the asset you already own.
Are I need security to secure a company loan?
For loans of up to $150,000, there is no requirement for asset security upfront to access the money However, we do need the personal guarantee. If you adhere to your loan commitments (as stated in your loan contract) Asset security will never be needed. If you take out loans in excess of $150K generally, there is the option of a personal guarantee and security in the form of the charge of assets.