FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Brookfield Small Business Loans
Tell me what you think of the Brookfield Small Business Loans
Brookfield unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from an ordinary business loan?
You can apply for this Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and have the funds available in just 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. This company loan is a loan that is priced upfront and you’ll know in advance the total amount to be paid, including the interest, fees and charges. This is then broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business reason, such as the management of cash flow, company improvements, advertising to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
About the Larger Brookfield Business Loans
What is the Larger Brookfield 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 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to have been in operation for at least 3 years and generate an annual revenue of at least $700K. Your business must belong to 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 large business loan can be used for almost every business reason, such as company improvements, purchasing equipment or inventory for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It is usually as a result of an charge on assets, which could also include registering this with the PPSR or registering as a caveat.
A director’s or personal ensure is a promise to pay off a credit line that is general in nature, rather than defining security over a particular asset. The person who signs the guarantee is personally responsible if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated 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 preference over private property granted according to the date a security interest has been registered.
A caveat is a legal document filed to provide the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250K we can offer an initial pre-approval to simplify the process. We may be able to make this decision 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 health checks. It is in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you might receive could be based on different terms.
Application process
Can I be eligible for funding?
You are eligible to apply 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)
- you must prove at least 6 months worth of trade (for for the 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 easy. Just complete the online application in just a few minutes, and a dedicated business expert in lending will contact you to assist you.
To apply for up $100,000, you’ll need ID details (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent as well as 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within one hour if you submit your request within quality business timings and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements we can offer a decision within an company day.
For Larger Business Loans ($100K and up) we may be likely to offer you with conditional pre-approval within 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Some offers have been approved within the space of 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard business hours. Also, permit us to use the modern bank verification link to instantly check your bank’s information online. If you decide to upload the copies of bank statement, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we can often provide an answer within one hour, provided you apply during standard business times and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to send us copies of your bank statement, we’ll offer the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of provide the conditional pre-approval in around six 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 specifics of each application. Certain offers have been approved in 24 hours.
The fastest method would be to ensure you apply during standard business hours. Also, permit us to use the sophisticated bank verification link to instantly check your bank’s information online. If you send us copies of your bank statements, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of aspects that determine your well-being that is your company and the amount of repayments that your business can support. The total amount of your loan will be contingent on the specifics for your company.
If you apply for a certain amount, we take into consideration a variety of variables to assess how much we can lend you such as well-being for your company as well as the amount of payments your company can support. The total amount of your loan will be determined by the particular circumstances for your company.
Fees & repayments
How much do you charge for a company loan?
If you decide to make an application for business loans with us business financing, we will assess the risk profile that you have for your company and offer an individualised offer that includes loan amount, term and the interest rates. The company loan is an upfront cost loan so you will be aware in advance of the total amount you will have to pay, including charges or interest.
What is the basis for the rate I pay?
Interest rates for company loans rates depend on a variety of factors like the amount of money of money borrowed, the business assets the money are used to purchase in addition to the industry that the business is operating in, how long the business is in operation as well as how long the business has sufficient cash flow to fund the loan, and general well-being or creditworthiness of the company.
What are the cost?
There aren’t any hidden costs for our business loans, and you’ll know exactly how much you need to pay, and when, right from day one. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You can request a credit loan with with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan in advance?
You can choose to repay the entire amount of your loan at any point in time.
If you do decide to pursue this option, please speak to our friendly company credit professionals. They will provide you with repayment details and an early payment figure. This will be calculated as the sum of the principal amount remaining and accrued interest to the date of early payout plus 1.5 percent of the principal balance and any fees that remain unpaid.
How do repayments work?
To ensure you do not miss payments and to work your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being upfront about the ways we gather information, use it, and exchange it, as well as safeguard your data, is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We use an advanced bank verification system that allows you to immediately verify your bank account information online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a business owner uses assets they own to make a loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a business property like a truck or other piece of machinery.
The vast majority of lenders, including the banks with the biggest size, prefer to make loans secured by an asset. If you’re having trouble paying back the loan then your assets could be taken over by the lender. In essence, it is an opportunity to secure new financing by making use of the value of what you already have.
What do I need security to get an company loan?
For loans up to $150K it is not necessary to secure assets upfront to access the money, however we require a personal guarantee. require the personal guarantee. If you adhere to the loan terms (as stated in your loan contract) the security of assets will never be required. If you take out loans in excess of $150K typically, you will need personal guarantee and security in the form of an asset charge.