FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The East Brisbane Small Business Loans
Tell me how you can avail the East Brisbane Small Business Loans
East Brisbane unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and have the funds in your account within 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. The business loan is a cash-based loan and you’ll know in advance the total amount payable including any interest, fees or charges. This is then divided into weekly or daily payment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company reason, such as managing cash flows, company renovations, marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About larger East Brisbane Business Loans
What is the Larger East Brisbane Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the company needs to be trading for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can I use the funding for?
A larger business loan is a great option for almost any business use, including business renovations, purchase of inventory or new equipment 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 requires security?
Asset security is required to access funding over $150,000. This is by taking a charge over assets, and could include the registration of this in the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is generally based rather than stating security over an asset. The person who is signing the guarantee is personally liable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR grants preference over private property assigned according to the date a security interest that is registered.
An affidavit is an official document filed to provide the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250K it’s possible to offer an initial pre-approval to simplify the process. It is possible to make this decision without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial well-being checks. It’s in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer you receive could be on different conditions.
The application process
Do I qualify for funds?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in just a few minutes, and a dedicated company expert in lending will call you to assist you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent twelve month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) We can usually provide a response in one hour – as long as you submit your request within standard company hours and allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we are able to provide a decision within just the span of one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to offer the conditional pre-approval within 6 hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved within less than 24 hours.
The quickest method can be make sure you apply during standard business hours. You can also let us use the advanced bank verification system to instantly confirm your bank details online. If you opt to send us duplicates of your banking accounts, it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within one hour – provided you submit your request in standard business timings and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements, we are able to provide a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) we could be likely to provide you with pre-approval conditional to your application in around six hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain agreements have been approved within less than 24 hours.
The fastest method can be ensure you apply during standard business hours and let us use the sophisticated bank verification link to instantly verify your bank information online. If you choose to upload the copies of bank statements, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a certain amount we consider a variety of elements in order to assess your well-being of the business as well as the amount of payments your business can afford. The total amount of the loan will be determined by the specific circumstances for your company.
When you submit an application for a set amount, we look at a range of variables to determine how much we can lend you such as well-being for your company as well as the amount of repayments your business can afford. The amount you receive from your loan will be determined by the specific circumstances for your business.
Fees & repayments
What is the cost for a company loan?
If you decide to make an application for our business loans, we’ll assess the risk profile for your business and provide you with a tailored offer including the amount of loan, the term and interest rates. A company loan is an upfront priced loan so you will know the exact amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I’m charged?
Interest rates for business loans rates depend on a variety of variables like the amount to be of money borrowed, the business assets the money will be used for in addition to the industry that the business operates in, the long the business is in operation for, whether the company has sufficient cash flow to pay for the loan, and the overall well-being and creditworthiness of the company.
What are the costs?
There are no hidden fees with our company loans. You’ll know precisely what it is that you be required to pay and when, starting from the very first day. There’s no compounding interest and no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to make an application for loans absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs 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 the loan.
Can I pay out the loan earlier?
You can decide to repay all of your loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful business loan experts. The specialists will offer you with details on repayment and an early payment figure. This is calculated as the total of the principal balance and the accrued interest up to the time of early payout, plus 1.5% of the principal balance and any outstanding fees.
How do repayments work?
To make sure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being transparent about the ways we gather, use, exchange and ensure the security of your information is of huge importance and is a crucial 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 protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to security for our clients and security. We employ an exceptionally sophisticated bank verification system link to instantly confirm your bank account information online. This allows us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner utilises an asset that they own to secure a loan. The asset could be an asset belonging to the personal, like the family home, or an company asset like a truck as well as a piece of machine.
The majority of lenders, including the big banks, tend to secure loans against an asset. If you have trouble paying back the loan, then your asset may be transferred to the lender. In essence it’s the process of securing new financing using the value of what you already have.
What do I require security to secure an company loan?
For loans that exceed $150K, the requirement for asset security is not required prior to the loan’s access, however we require a personal guarantee. need the personal guarantee. As long as you follow the loan terms (as stipulated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150,000, generally, there is personal ensure and security that is in the form the charge of assets.