FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Burpengary Small Business Loans
Tell me what you think of the Burpengary Small Business Loans
Burpengary unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from an ordinary business loan?
You can apply for your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and the money could be on your account within 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. We offer a business loan is an upfront priced loan therefore you’ll be aware in advance of the total amount payable including any fees, charges or charges. Then, it is broken down into weekly or daily installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business purpose including managing cash flows, company remodeling, marketing to purchase inventory, new equipment, as general working capital and much more. The loan is not available for personal purposes.
About Larger Burpengary Business Loans
What is the Larger Burpengary Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your company needs to be operating for at least three years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be utilised?
A larger business loan can be used for nearly any company use, including business renovations, to purchase inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It is usually by way of charge over assets, which could also include registering this with the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than specifying the security of a specific asset. The person who is signing the guarantee is personally accountable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including items or assets). The PPSR permits preference over private property granted according to the date the security interest has been registered.
The caveat can be described as a formal document that is filed to offer the public 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 exceeds $250,000 it’s possible to offer an initial pre-approval to make the process. We could be able to make this decision without a credit check and within six 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 checks. This is neither an offer nor a guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you may receive may have different terms.
Application process
Do I have the right to receive funds?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application within a few minutes and a dedicated business lending specialist will be in touch to help you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Information about the application 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 month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually offer a response in one hour – as long as you make your application at standard company time and you allow us to utilise the bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements , we are able to provide the decision within one company day.
For the Larger Business Loan ($100K or more) we could be able to provide you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The quickest way to apply can be make sure you apply during normal business hours, and let us use the advanced bank verification system link to check your bank’s information online. If you opt to upload copies of your bank statements , it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) We can usually offer an answer within one hour – as long as you submit your request in normal business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statement, we’ll provide a decision in just one business day.
If you are applying for Larger Business Loans ($100K or more) We may be likely to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The fastest way would be to make sure you apply during normal business hours and allow us to use our modern bank verification to instantly verify your bank account information online. If you choose to upload copies of your bank statements it may take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a specific amount we look at a variety of aspects in order to assess the health of the business and the amount of repayments that your company will be able to support. The amount you receive from your loan will depend on the specific circumstances the business.
If you apply for a set amount, we will consider a number of elements to determine the health of your business and the level of payments your company is able to afford. The amount you receive from the loan will be determined by the specific circumstances for your business.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for the company financing, we’ll assess the risk assessment that you have for your company and offer you with a customised offer including the amount of loan, the term and interest rates. This company loan is an upfront-priced loan and you’ll be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Business loan interest rates depend on several factors like the amount of money of money borrowed, the business assets the funds will be used for as well as the field the company operates in, the long the business has been operating for, what percentage of the company has enough cash flow to fund the loan, and also the general health or financial standing of the company.
What are the charges?
There aren’t any hidden costs with our company loans. You’ll be aware of the amount you’ll need to pay and when, starting from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can make an application for loans no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan early?
You can decide to repay the entire amount of your advance loan at any time.
If you choose to take this route, please speak to our friendly company loans experts. They’ll provide you with details for repayment and an early payment figure. This is calculated as the total of the principal balance and any accrued interest at the time of early payout plus 1.5% of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and safeguard your data, is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify the bank account details online so we can offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the business owner makes use of an asset that they own to get the loan. The asset could be a personal asset like the family home or an company asset like a truck as well as a piece of machine.
The vast majority of banks, including the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan then the asset could be taken over by the lender. In essence, it is a way of securing new financing by using the worth of the asset you already have.
Do I need security for a business loan?
For loans that exceed $150K, it is not necessary to secure assets in advance to gain access to the funds, however we do need an individual guarantee. If you adhere to the terms of your loan (as specified in your loan contract document), asset security is not needed. For loans over $150,000 generally, there is a personal ensure and security in the form of the charge of assets.