FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Bethania Small Business Loans
Let me know about the Bethania Small Business Loans
Bethania unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from the traditional business loan?
Apply to this Small Business Loan in under 10 minutes on 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 company loans refer to an interest rate per annum together with additional fees and charges. The business loan is a cash-based loan so you will be aware in advance of the amount you will have to pay, including any fees, interest or charges. This is then broken down into either weekly or daily repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost every business need, such as managing cash flows, business renovations, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal use.
About larger Bethania Business Loans
What is the Larger Bethania Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the company needs to be trading for at least 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost every business reason, such as company renovations, to purchase inventory or new equipment as well as for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It is usually by taking a charge on assets, and could include the registration of this on the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to repay credit that is generally based rather than stating security over an asset. The person who is signing the ensure is personally liable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR gives preference over private property granted according to the date a security interest was registered.
A caveat is a legal form of document to provide the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of more than $250,000 it is possible to offer an initial pre-approval to simplify the process. It is possible to apply for this without a credit verification 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 in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you may receive may be based on different conditions.
Application process
Can I be eligible for funding?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Just complete the online application within a couple minutes, and an experienced company loan specialist will be in touch to assist you.
To apply for up $100,000 you’ll require identification details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank records, IRD statements and the last two years’ finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we typically offer an answer in just one hour if you make your application during standard company times and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements , we will be able to offer the decision in just an business day.
For Larger Business Loans ($100K or more) we could be capable of offer you with pre-approval conditional to your application within about 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Some agreements have been approved in 24 hours.
The most efficient method would be to make sure you apply during standard business hours and let us use the advanced bank verification system link to instantly confirm your bank details online. If you choose to send us the copies of bank statements , it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) We can usually offer a response in one hour if you apply at standard business time and permit us to use the bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements we can offer a decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we may be capable of offer you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved within 24 hours.
The quickest method can be ensure you apply during standard business hours. You can also allow us to use our advanced bank verification system to instantly check your bank’s information online. If you decide to upload documents from your account statements, it may take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a certain amount we look at a variety of variables that determine the health of the company and the level of repayments your business can support. The amount you receive from your loan will be contingent on the particular circumstances for your company.
When you apply for a specific amount we take into consideration a variety of elements to assess your health of your company and the level of repayments that your company will be able to support. The amount you receive from the loan will be determined by the particulars the company.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for business loans with us company loans, we’ll assess the risk profile for your company and offer you with a customised offer including the amount of loan, the term and the interest rates. The business loan is an upfront-priced loan so you will know the exact amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I’m charged?
Interest rates for business loans rates depend on a variety of factors including the amount of money borrowed, the business assets the funds will be used for and the sector the business is operating in, how long the business has been in operation for, in the event that the company has enough cash flow to pay for the loan, as well as the overall well-being or creditworthiness of the company.
What are the costs?
There aren’t any hidden costs with our business loans, and you’ll know exactly how much you’ll need to pay and when, starting from day one. There’s not any compounding interest and no additional fees (as as you make your payments in time).
We don’t charge an application fee. You can get a cash loan without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I repay the loan earlier?
You can repay the entire amount of the loan in full at any time.
If you are deciding to take this route, please call our helpful company loans specialists. We will provide you with repayment details along with an early payout estimate. This is calculated as the total of the remaining principal amount plus any accrued interest as of the date of early payout in addition to 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss repayments and to fit in with your cash flow standard, we offer repayments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about the ways we gather information, use it, and exchange it, as well as safeguard your data, is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We utilise a sophisticated banking verification system to immediately confirm your bank account information online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner uses assets they own to get the loan. The asset can be either an individual property, such as the family home, or it could be a business asset like a truck or piece or equipment.
The majority of lenders, even the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan, the asset could be transferred to the lender. In essence it is a way of securing new funding making use of the value of what you already have.
Do I need security to get an company loan?
For loans of up to $150K, the requirement for asset security is not required upfront to access the money, however we do need an individual guarantee. So long as you comply with the terms of your loan (as stated in your loan contract document), asset security is not required. For loans over $150K generally, there is personal guarantee and security in the form a charge over assets.