FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Bardon Small Business Loans
Let me know what you think of the Bardon Small Business Loans
Bardon unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from a traditional company loan?
You can apply to the Small Business Loan in under 10 minutes online or by phone. You will receive an immediate response, and have the funds available in just 24 hours. Traditional company loans refer to an annual interest rate together with additional fees and charges. The business loan is a pre-paid loan so you will be aware of the total amount payable including 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?
A Small Business Loan can be used for almost any business use, including the management of cash flow, business improvements, advertising to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
About larger Bardon Business Loans
What is the Larger Bardon Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
The 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?
In order to be eligible for a loan of this size, your business needs to be trading for at least 3 years and have an annual turnover of at least $700,000. 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 prove at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly every business reason, such as business improvements, purchasing equipment or inventory as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This can be done by taking a charge against assets and can include the registration of this with the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature, rather than defining the security for a particular asset. The person who signs the guarantee is personally liable in the event that the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR grants the priority of personal property assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document lodged to offer the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan of $250,000 or more, we may offer an initial pre-approval in order to simplify the process. We may be able to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial health questions. This is neither an offer nor a guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer that you receive could have different conditions.
The 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 at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (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 simple and easy. Just fill out the online application within a couple minutes, and an experienced business loan specialist will contact you to guide 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 6 months’ worth of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent twelve months of bank statements, IRD statement and the last two years’ finalised financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within an hour, provided you apply at standard company hours and you allow us to utilise the bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we will be able to provide an answer in just the span of one company day.
For the Larger Business Loan ($100K and up) we might be able to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain offers have been approved within just 24 hours.
The most effective method is to make sure you apply during standard company hours. Also, allow us to use our modern bank verification link to confirm your bank details online. If you choose to send us documents from your account accounts, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour – as long as you apply within normal business times and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements we can provide a decision within one business day.
If you are applying for Larger Business Loans ($100K and up) we might be capable of provide you with pre-approval conditional to your application within about 6 hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Some offers have been approved in 24 hours.
The most efficient method for you to apply is make sure you apply during normal business hours. Also, allow us to use the advance bank verification to instantly verify your bank information online. If you choose to upload the copies of bank statements it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a specific amount we take into consideration a range of aspects to determine your health for your business as well as the amount of the repayments your company will be able to support. The total amount of your loan will depend on the specifics for your company.
If you apply for a certain amount, we will consider a number of elements to assess the health for your business as well as the amount of repayments that your company can support. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to apply for business loans with us business loans, we’ll assess the risk assessment for your business and provide you with a customised offer including the amount of loan, the term and interest rates. The business loan is a loan that is priced upfront therefore you will be aware of the total amount payable including any charges or interest.
What determines the rate that I will be charged?
Interest rates for business loans rates depend on a variety of variables like the amount to be borrowed, the company assets the funds are used to purchase and the sector the company is in, how long the company is in operation as well as what percentage of the business has enough cash flow to fund the loan, and the overall well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden costs for our business loans. You’ll know precisely what you need to pay and when, from the day you sign up. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We do not charge an application fee. You are able to apply for a loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan in advance?
You can decide to repay all of your loan at any point in time.
If you choose to take this route, please talk to one of our helpful company credit specialists. The experts will offer you with details for repayment along with an early payout estimate. It will be calculated using the sum of the principal remaining and any accrued interest at the time of the early payout plus 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To ensure you do not miss payment dates and to align with your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear how we collect, use, exchange and secure your information, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We use an advanced banking verification system to immediately verify your bank account details online to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner uses an asset that they own to get the funding. The asset can be either an individual asset, such as the family home or an company asset such as a vehicle as well as a piece of machine.
The majority of banks, not just the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan, the asset could be taken over by the lender. In essence it’s the process of securing new financing by using the value of what you already have.
What do I need security to get an company loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds, however we do need the personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract document), asset security will never be required. If you take out loans in excess of $150,000 typically, you will need an individual guarantee and security in the form of a charge over assets.