FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Brisbane Small Business Loans
Tell me more about Brisbane Small Business Loans
Brisbane unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an traditional company loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and have the funds available in just 24 hours. Traditional business loans have an annual rate of interest plus other fees and charges. This company loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount to be paid, including any fees, charges or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company purpose including control of cash flow business remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been trading for at least 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A large business loan can be used for nearly every business use, including business renovations, purchase of equipment or inventory, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It’s by way of charge over assets, which could also include registration through the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature rather than stipulating security over a particular asset. The person signing the ensure is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be granted in accordance with the date on which a registration of a security interest.
An affidavit is an official document lodged to offer the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan of more than $250,000, we may offer an initial pre-approval to make the process. We may be able to apply for this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial well-being checks. This is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you are offered could be on different terms.
The application process
Do I qualify for funds?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in few minutes and a dedicated business loan specialist will call you 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 an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent twelve month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we typically offer an answer within an hour if you make your application at standard business times and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your bank statements , we are able to provide an answer within just 1 company day.
For Larger Business Loans ($100K up to $500,000) we might be capable of provide you with pre-approval conditional to your application within about six hours. Once you’ve signed the 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 deals have been approved in the space of 24 hours.
The most effective method would be to make sure you apply during standard company hours. You can also permit us to use the modern bank verification to verify your bank information online. If you opt to send us duplicates of your banking statement, it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) We can usually offer a response in one hour – provided you make your application during normal business timings and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements, we’ll be able to provide the decision in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be able to provide the conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be faster depending on the specifics of each application. Certain offers have been approved within the space of 24 hours.
The most efficient method is to make sure you apply during normal business hours. You can also allow us to use the modern bank verification to instantly verify your bank account information online. If you opt to send us copies of your bank accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a specific amount we consider a variety of aspects to determine what is the well-being for your business and the amount of repayments your business can support. The total amount of the loan will be determined by the specifics of your company.
When you make an application for a particular amount, we consider a variety of aspects to determine how much we can lend you such as well-being for your business and the amount of repayments your business is able to afford. The total amount of your loan will be contingent on the particular circumstances of your company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for one of our business financing, we’ll assess the risk profile of your business and offer an individualised proposal that includes loan amount, term and the interest rates. The business loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any charges or interest.
What determines the rate that I will be charged?
Interest rates for company loans rates differ based on various variables like the amount to be borrowed, the business assets the money will be used for as well as the field the company is operating in, how long the business has been in operation for, whether the business has sufficient cash flow to cover the loan, and overall health or creditworthiness of the business.
What are the fees?
There are no hidden costs with our company loans. You’ll know exactly how much you need to pay, and when, right from the first day. There’s no compounding interest, and there are no additional charges (as long as you make your payments in time).
We do not charge an Application Fee. You are able to apply for a loan with no cost upfront or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan earlier?
You may choose to pay back the total amount of your loan early at any time.
If you decide to pursue this option, please speak to our friendly company loan experts. We will offer you with details on repayment along with an early payout estimate. This will be calculated as the total of the principal remaining and accrued interest to the time of early payout, plus 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payment dates and to align your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing how we collect, use, exchange and protect your information, is vital 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 sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated banking verification system to instantly verify your bank account information online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner uses an asset that they own to make a loan. The asset may be an asset belonging to the personal, like the family home or a business asset such as a vehicle or other piece of machinery.
The majority of lending institutions, including the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, then your assets could be taken over by the lender. In essence, it’s the process of securing additional financing taking advantage of the value of what you already own.
What do I require security to get an business loan?
For loans that exceed $150,000, there is no requirement for asset security before you are able to access the money but we do need an individual guarantee. If you adhere to the terms of your loan (as detailed in the loan contract), asset security will never be needed. For loans that exceed $150,000, generally, there is an individual ensure and security that is in the form a charge over assets.
