FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Birkdale Small Business Loans
Let me know more about Birkdale Small Business Loans
Birkdale unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to your Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and have the funds in your account in 24 hours. Traditional company loans have an annual interest rate along with other charges and fees. We offer a 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, charges 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 to fulfill almost any company use, including control of cash flow company renovations, marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan cannot be used to fund personal expenses.
About the Larger Birkdale Business Loans
What is the Larger Birkdale Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been in operation for at least 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can the funding be used for?
A larger business loan can be used to fund almost all company purpose including company remodeling, buying inventory or new equipment for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It’s as a result of an charge against assets, and could include registration in the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally in nature rather than defining security over a particular asset. The person who is signing the guarantee is personally responsible if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR gives the priority of personal property assigned in accordance with the date on which a security interest that is registered.
Caveats are legal form of document to provide notice of a legal claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250K it’s possible to offer an initial pre-approval to make the process. We could be able to apply for this without a credit check and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial well-being questions. This is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer that 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, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application in just a few minutes, and an experienced company expert in lending will call you to guide you through the process.
To apply for up $100,000 you’ll need ID details (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent twelve months of bank statements, IRD statements, last 2 years finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we typically provide an answer in just one hour – as long as you make your application during standard business times and let us utilise the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statement, we’ll offer a decision within just an business day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be likely to provide you with conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Some offers have been approved within 24 hours.
The fastest way can be make sure you apply during normal company hours. Also, allow us to use the advanced bank verification system link to confirm your bank details online. If you opt to upload documents from your account accounts, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer in just one hour – as long as you make your application during normal business hours and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statements, we are able to offer an answer within 1 business day.
For Larger Business Loans ($100K or more) we could be in a position to provide you with pre-approval conditional to your application in around 6 hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved within just 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours. Also, let us use the advanced bank verification system link to verify your bank information online. If you choose to upload copies of your bank statement, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a certain amount we consider a variety of aspects that determine the well-being for your company and the amount of the repayments your business can afford. The amount you receive from your loan will be contingent on the specifics of your business.
If you apply for a specific amount we will consider a number of elements to determine the health for your company and the level of repayments that your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
Fees & repayments
How much should you charge for a company loan?
If you decide to apply for our company financing, we’ll assess the risk profile for your business and provide you with a customised offer including loan amount, term and the interest rates. A company loan is an upfront cost loan and you’ll know in advance the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I pay?
The interest rates on business loans rates vary due to factors such as the amount that is that is borrowed, what business assets the money are used to purchase, the industry the company operates in, the long the business has been running for, in the event that the business has sufficient cash flow to fund the loan, and the overall well-being or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs with our business loans. You’ll know precisely how much it is that you need to pay, and when, starting from day one. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You can apply for a loan with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan earlier?
You can choose to repay the total amount of your loan early at any time.
If you decide to pursue this option, please call our helpful business lending experts. We will offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining and accrued interest to the date of early payout and 1.5 percent of the principal balance and any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line with your cash flow general, we provide repayments either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear the ways we gather data, process, exchange and protect your information, is crucial and an integral 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 personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system link to immediately verify the bank account details online, allowing us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner utilises assets they own to secure the funding. The asset could be an asset belonging to the personal, like the family home or an company property like a truck or piece of equipment.
The majority of the lenders even the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan, the asset could be sold by the lender. In essence, it’s means of securing new financing taking advantage of the value of what you already have.
Should I require security to get a business loan?
For loans of up to $150K, no asset security is required before you are able to access the money but we do need an individual guarantee. So long as you comply with the terms of your loan (as stated in the loan contract), asset security will never be needed. For loans that exceed $150,000, generally, there is a personal ensure and security is provided in the form of a charge over assets.