FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Bray Park Small Business Loans
Let me know how you are able to avail the Bray Park Small Business Loans
Bray Park unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from a traditional business loan?
The application for your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and funds may be on your account within 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. Our company loan is a cash-based loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business use, including managing cash flows, company remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal use.
About Larger Bray Park Business Loans
What is the Larger Bray Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to be operating for a minimum of 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be utilised?
A Larger Business Loan is a great option for almost any company need, including business renovations, to purchase equipment or inventory as well as for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. It is usually in the form of a charge on assets and can be registered with the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature rather than stating security over a particular asset. The person signing the guarantee is personally accountable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR grants preference over private property assigned according to the date a registration of a security interest.
An affidavit is an official form of document to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan of $250,000 or more we may be able to provide an initial pre-approval to ease the process. We might be able to do this without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health questions. This is neither an offer nor a guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you receive could be based on different terms.
Application process
Can I be eligible for funding?
You can apply for a business 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)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in few minutes and a dedicated business lending specialist will be in touch to assist you.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s License) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Information on the application including credit consent, 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer within an hour, provided you apply at standard business times and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statement, we’ll offer the decision in as little as the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to provide you with conditional pre-approval within six hours. After you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Some agreements have been approved within less than 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. You can also permit us to use the advance bank verification link to instantly verify your bank account information online. If you opt to upload the copies of bank statements , it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually offer a response in one hour – provided you make your application at standard business times and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements, we are able to provide the decision within 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be in a position to provide you with pre-approval conditional to your application within 6 hours. Once you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain deals have been approved in 24 hours.
The fastest way is to make sure you apply during standard business hours. You can also permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you opt to upload duplicates of your banking accounts, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of factors for determining what is the well-being that is your business as well as the amount of repayments your company can support. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
When you submit an application for a particular amount, we consider a variety of factors to determine your health of your business and the amount of repayments that your business will be able to support. The total amount of the loan will be determined by the particulars the business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to apply for the company loans, we’ll assess the risk assessment that you have for your company and offer you with a customised offer that includes the amount of loan, the term and the interest rates. The business loan is an upfront-priced loan therefore you will know in advance the total amount due, which includes any charges or interest.
What determines the amount I am charged?
Business loan interest rates depend on a variety of factors like the amount of money that is borrowed, what business assets the funds will be used for and the sector the company operates in, the long the business has been running and whether the business has enough cash flow to cover the loan, and the general well-being and creditworthiness of the business.
What are the cost?
There are no hidden costs for our company loans, and you’ll know exactly how much you’ll be required to pay and when, from the day you sign up. There’s no compounding interest, and no extra fees (as as long as you pay your payments in time).
We do not charge an application fee. You are able to apply for a loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You can choose to repay the entire amount of the loan in full at any time.
If you decide to pursue this option, please speak to our friendly business loans professionals. The professionals will provide you with repayment details and an early payout figure. It will be calculated using the total of the principal amount remaining and the accrued interest up to the time of the early payout and 1.5% of the remaining principal plus any outstanding fees.
What are the repayment methods?
To ensure you do not miss due dates and also to be in line your cash flow cycle we offer repayments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing how we collect, use, exchange and protect your information, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We utilise a sophisticated banking verification system to immediately verify your bank account details online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner borrows from assets they own to make the funding. The asset may 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 lending institutions, including the big banks, tend to guarantee loans against an asset. If you’re struggling to pay back the loan then the asset could be sold by the lender. In essence it’s an opportunity to secure additional financing making use of the value of what you already have.
Do I require security for a business loan?
For loans that exceed $150K, it is not necessary to secure assets prior to the loan’s access However, we do require an individual guarantee. If you adhere to the terms of your loan (as stated in your loan contract) Asset security will never be needed. For loans over $150,000 generally, there is a personal guarantee and security in the form of an asset charge.