FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Burbank Small Business Loans
Tell me about the Burbank Small Business Loans
Burbank unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from the traditional company loan?
It is imaginable to apply to get this Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and funds may be on your account within 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. The business loan is a pre-paid loan so you will know ahead of time the total amount due, which includes any fees, charges or charges. This is then divided into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business need, such as the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, to fund general working capital and much more. The loan is not available for personal use.
About Larger Burbank Business Loans
What is the Larger Burbank Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to be trading for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be used for?
A large business loan can be used for almost all company need, including business improvements, purchasing inventory or new equipment for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It’s by way of charge over assets, which could also include registering this with the PPSR or making as a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is general in nature, rather than specifying the security of a specific asset. The person who signs the ensure is personally responsible if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR permits the priority of personal property granted in accordance with the date on which a security interest has been registered.
An affidavit is an official document lodged to provide notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that is greater than $250,000 it is possible to offer an initial pre-approval to ease the process. We could be able to do this without credit checks and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial health checks. It’s not an offer or guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer that you are offered could be subject to different terms.
The application process
Are I eligible for funding?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just complete the online application in few minutes and an experienced business expert in lending will be in touch to guide you through the process.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent twelve months bank statement, an IRD statements as well as the two most recent years’ financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we can often provide a response in one hour if you apply at quality business times and allow us to utilise the bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements , we’ll be able to offer a decision within 1 company day.
For Larger Business Loans ($100K and up) we might be capable of provide you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved within less than 24 hours.
The fastest way can be ensure you apply during normal business hours and permit us to use the advanced bank verification system to verify your bank information online. If you choose to send us copies of your bank statements , it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we usually offer an answer within an hour, provided you apply in standard business time and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements, we will be able to provide an answer within one business day.
If you are applying for Larger Business Loans ($100K and up) We may be in a position to provide the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Some agreements have been approved in less than 24 hours.
The most effective method would be to ensure you apply during normal business hours, and allow us to use the modern bank verification to confirm your bank details online. If you send us the copies of bank accounts, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a certain amount, we look at a variety of factors in order to assess your well-being that is your company and the extent of payments your business can support. The total amount of your loan will depend on the particular circumstances the company.
When you make an application for a set amount, we look at a range of variables to determine the well-being of your business and the amount of repayments your company will be able to support. The total amount of the loan will be determined by the specific circumstances of your business.
Fees & repayments
How much should you charge for the cost of a business loan?
When you apply for business loans with us business credit, we will assess the risk assessment of your company and provide you with a tailored proposal that includes the amount of the loan, the duration and interest rates. The company loan is an upfront-priced loan so you will know the exact amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates vary due to variables like the amount to be borrowed, what business assets the funds are used to purchase as well as the field the business operates in, how long the company has been in operation, in the event that the company has sufficient cash flow to fund the loan, and also the general well-being and creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our company loans. You’ll know exactly how much you’ll need to pay and when, from day one. There’s no compounding 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 are able to get a cash loan no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay out the loan in advance?
You can choose to repay the entire amount of your loan early at any time.
If you decide to pursue this option, please call our helpful business credit professionals. They’ll offer you with repayment details as well as an early payout amount. It will be calculated using the total of the principal balance and the accrued interest up to the date of early payout, plus 1.5% of the remaining principal plus any outstanding fees.
How do repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow standard, we provide payments that are either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear the ways we gather, use, exchange and ensure the security of your information is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We utilise a sophisticated bank verification system to instantly verify the bank account details online. This allows us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner uses assets they own to get the funds for a loan. The asset could be a personal asset like the family home, or an company asset like a truck or piece of equipment.
The majority of lending institutions, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, the asset could be transferred to the lender. In essence it is the process of securing new financing by making use of the value of what you already have.
Are I require security to secure an business loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds, however we do need the personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract), asset security is not required. For loans over $150K generally, there is the option of a personal guarantee and security is provided in the form of a charge over assets.