FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Brisbane Small Business Loans
Tell me what you think of the Brisbane Small Business Loans
Brisbane unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from the traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and funds may be in your account in 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. This company loan is a cash-based loan so you will know ahead of time the amount you will have to pay, including the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any business purpose including managing cash flows, business renovations, marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
About Larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to have been operating for at least three years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funds be used for?
A large company loan can be used for nearly every business purpose including company renovations, purchase of new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. This is in the form of a charge against assets, which could also include registering this in the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally in nature rather than stipulating security over a particular asset. The person who signs the ensure is personally liable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including objects or assets). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document filed to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for larger company loans of more than $250K we can offer an initial pre-approval in order to smooth out the process. We may be able to do this without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial health checks. It’s in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be on 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 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a few minutes and an experienced business expert in lending will be in touch to guide you.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank records, IRD statements Last 2 years’ finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K or more) we typically provide an answer within one hour, provided you submit your request in standard company time and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your banking statements , we will be able to provide an answer in as little as an business day.
For the Larger Business Loan ($100K and up) we might be in a position to offer you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some deals have been approved in less than 24 hours.
The most efficient method can be make sure you apply during standard company hours, and allow us to use the modern bank verification to verify your bank account information online. If you choose to send us documents from your account statement, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within one hour if you submit your request at standard business times and allow us to use the bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements we can provide the decision within an business day.
For the Larger Business Loans ($100K to $500K) we could be able to offer you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Certain transactions have received approval in less than 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. You can also let us use the modern bank verification to verify your bank account information online. If you decide to upload duplicates of your banking accounts, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a specific amount we consider a variety of elements to determine what is the health of your business and the level of payments your company is able to afford. The total amount of your loan will depend on the specifics the company.
When you make an application for a specific amount we take into consideration a variety of elements to determine your well-being for your business and the amount of repayments that your business will be able to support. The total amount of your loan will be contingent on the particular circumstances of your business.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to apply for the company loans, we will assess the risk assessment that you have for your company and provide you with a tailored offer that includes the loan amount, the terms and interest rates. It is a company loan is an upfront-priced loan therefore you will be aware in advance of the total amount to be paid, including any charges, interest rates or fees.
What determines the rate that I will be charged?
Interest rates for business loans rates differ based on various factors such as the amount that is of money borrowed, the business assets the money are used to purchase in addition to the industry that the company operates in, the long the business is in operation for, how long the business has sufficient cash flow to support the loan, as well as the overall health or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our company loans, and you’ll be aware of the amount you be required to pay and at what time, from day one. There’s not any compounding interest and no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to apply for a loan with without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan earlier?
You can decide to repay all of your loan at any point in time.
If you choose to take this route, please speak to our friendly business lending experts. They will provide you with details on repayment along with an early payout estimate. This will be calculated as the sum of the principal amount remaining and accrued interest to the time of early payout in addition to 1.5% of the principal balance and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing payment dates and to align with your cash flow standard, we provide payments that are either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being transparent about how we collect, use, exchange and ensure the security of your information is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We employ an exceptionally sophisticated bank verification system link to instantly verify your bank account information online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from an asset that they own to get a loan. The asset can be an individual property, such as the family home, or a company property like a truck as well as a piece of machine.
The vast majority of banks, including the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, the asset could be transferred to the lender. In essence, it’s the process of securing new financing by making use of the value of what you already own.
Do I require security to secure a business loan?
For loans of up to $150K, the requirement for asset security is not required upfront to access the money However, we do need a personal guarantee. So long as you comply with the terms of your loan (as stipulated in the loan contract) Asset security will never be required. For loans of over $150K typically, you will need the option of a personal ensure and security in the form of a charge over assets.