FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Brisbane Small Business Loans
Tell me how you can avail the Brisbane Small Business Loans
Brisbane unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from the traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and funds may be available in just 24 hours. Traditional business loans are based on an annual interest rate together with additional fees and charges. We offer a business loan is a loan that is priced upfront so you will be aware in advance of the total amount due, which includes any fees, charges or charges. This is then divided into weekly or daily payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business reason, such as the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
About larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the business needs to be operating for at least three years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A large company loan can be used for nearly any company use, including company renovations, purchase of new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. This can be done as a result of an charge on assets, and could include the registration of this through the PPSR or filing a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is generally based rather than specifying security over a particular asset. The person who signs the guarantee is personally liable in the event that the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR allows prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans that exceeds $250K we may be able to provide a preliminary pre-approval to help smooth out the process. We may be able to get this done without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves the answer to a series of financial health checks. This is not an offer or guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be on different terms.
The application process
Can I be eligible for funding?
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 trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a couple minutes, and a dedicated business loan specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we typically offer a response in one hour – as long as you make your application in quality business hours and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statement, we’ll offer a decision within one company day.
If you are applying for a Larger Business Loan ($100K and up) we might be able to provide the conditional pre-approval in about six hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be quicker based upon the circumstances for each application. Certain transactions have received approval in 24 hours.
The fastest way can be ensure you apply during standard company hours. You can also permit us to use the advance bank verification link to check your bank’s information online. If you choose to upload duplicates of your banking statements it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) We can usually offer an answer in just one hour if you apply within normal business time and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements, we are able to offer an answer in just one business day.
If you are applying for Larger Business Loans ($100K and up) we may be likely to offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain deals have been approved in 24 hours.
The fastest method is to make sure you apply during standard business hours and let us use the modern bank verification to instantly confirm your bank details online. If you upload the copies of bank accounts, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a particular amount, we consider a variety of factors to determine your health of the business and the amount of repayments that your company can support. The total amount of your loan will depend on the specifics that are unique to your business.
When you make an application for a certain amount, we consider a variety of aspects to assess your health that is your business and the extent of the repayments your business can support. The amount you receive from your loan will depend on the particulars for your company.
Fees & repayments
How much do you charge for a company loan?
If you decide to apply for the company loans, we will assess the risk assessment that you have for your business and provide you with a customised offer that includes loan amount, term and interest rates. The business loan is an upfront priced loan so you will know the exact amount due, which includes any charges or interest.
What is the factor that determines the price I’m charged?
Business loan interest rates depend on several factors like the amount of money of money borrowed, the company assets the funds are used to purchase, the industry the business operates in, the long the business has been operating, in the event that the company has sufficient cash flow to pay for the loan, as well as the overall well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you be required to pay, and when, from the very first day. There’s no compounding interest and there are no additional charges (as as you make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of the advance loan at any time.
If you decide to pursue this option, please contact our helpful business loan specialists. They will offer you with details on repayment as well as an early payout amount. The figure will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of the early payout in addition to 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To make sure that you don’t miss due dates and also to be in line with your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear the ways we gather the information we collect, use, share and protect your information, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We utilise a sophisticated banking verification system to immediately verify the bank account details online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner uses the assets they have to obtain the funds for a loan. The asset may be an asset belonging to the personal, like the family home, or an business property like a truck as well as a piece of machine.
The vast majority of lenders, even the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, the asset could be sold by the lender. In essence it is a way of securing new financing by making use of the value of what you already have.
What do I need security to secure an business loan?
For loans that exceed $150,000, no asset security is required before you can access the money However, we require a personal guarantee. need an individual guarantee. As long as you follow the terms of your loan (as stated in your loan contract) Asset security is not needed. For loans over $150K generally there is personal guarantee and security in the form of an asset charge.
