FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Brisbane Small Business Loans
Tell me what you think of the Brisbane Small Business Loans
Brisbane unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
You can apply to the Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and the funds could be in your account within 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. Our business loan is a loan that is priced upfront so you will know in advance the total amount to be paid, including any fees, charges or charges. Then, it is broken down into either a daily or weekly payment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company reason, such as control of cash flow company renovations, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your company needs to be trading for at least 3 years and generate an annual revenue of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funding for?
A larger business loan is a great option for almost all business use, including company renovations, purchase of equipment or inventory, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It is usually as a result of an charge on assets, which could also include the registration of this through the PPSR or filing a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is generally based rather than defining security over an asset. The person signing the guarantee is personally responsible if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR permits priority over personal property to be assigned according to the date a security interest was registered.
Caveats are legal document that is filed to offer an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250,000 it is possible to offer an initial pre-approval that will help simplify the process. We may be able to apply for this without credit checks and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial well-being checks. It’s not an offer or guarantee of funds. Unconditional approval is subject to an extensive credit evaluation and any offer that you receive could have 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 the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form within a couple minutes, and an experienced company credit specialist will call you to help you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License), a valid NZBN/IRD and at least 6 months’ worth 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 credit is over $150K).
$250K-$500K: Details for application including credit consent twelve months of bank records, IRD statement Last 2 years’ finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we usually provide a response in one hour, provided you make your application within quality company times and let us utilise the bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statements we can offer an answer in as little as 1 company day.
If you are applying for a Larger Business Loan ($100K or more) we may be in a position to offer you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved within less than 24 hours.
The most efficient method would be to make sure you apply during normal business hours and allow us to use the advanced bank verification system to check your bank’s information online. If you decide to send us the copies of bank statement, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour – as long as you submit your request at normal business times and permit us to use the bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of provide the conditional pre-approval in around six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Some agreements have been approved in 24 hours.
The most effective method would be to make sure you apply during normal business hours. You can also allow us to use the advanced bank verification system to verify your bank account information online. If you upload copies of your bank statements it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of aspects for determining your health for your business as well as the amount of the repayments your company can support. The total amount of your loan will be contingent on the particular circumstances the company.
When you make an application for a set amount, we take into consideration a variety of variables to assess how much we can lend you such as health of your business as well as the amount of repayments your company can support. The amount you receive from your loan will depend on the specific circumstances the business.
Fees & repayments
How much should you charge for an business loan?
If you decide to request the company financing, we will assess the risk assessment for your business and offer an individualised offer that includes loan amount, term and interest rates. The business loan is an upfront-priced loan so you will know the exact amount payable including any costs, fees, or interest rates.
What determines the rate that I pay?
Business loan interest rates vary due to factors including the amount borrowed, the company assets the money will be used for, the industry the company is in, how long the business has been operating, in the event that the business has sufficient cash flow to cover the loan, and overall well-being or creditworthiness of the company.
What are the costs?
There are no hidden fees for our company loans. You’ll know precisely how much you’ll be required to pay, and when, from the first day. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to get a cash loan with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan early?
You can choose to repay the entire amount of the loan early at any time.
If you choose to pursue this option, please call our helpful business loan professionals. They’ll provide you with repayment details and an early payment figure. This is calculated as the total of the remaining principal amount plus any accrued interest as of the date of early payout and 1.5% of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To ensure you do not miss payment dates and to align with your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear how we collect, use, exchange and secure your information, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We employ an exceptionally sophisticated banking verification system to instantly verify the bank account details online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from the assets they have to get a loan. The asset may be an individual property, such as the family home, or an company asset such as a vehicle or other piece of machinery.
The majority of lending institutions, not just the largest banks, are inclined to guarantee loans against an asset. If you’re struggling to pay back the loan, the asset could be offered for sale by the lender. In essence it is a way of securing new funding using the value of what you already have.
Do I require security for an company loan?
For loans up to $150,000 there is no requirement for asset security in advance to gain access to the funds, however we do require the personal guarantee. In the event that you fulfill the loan terms (as specified in the loan contract) Asset security is not required. If you take out loans in excess of $150,000 typically, you will need personal ensure and security is provided in the form of an asset charge.