FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Brisbane Small Business Loans
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Brisbane unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from an traditional company loan?
The application to the Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and the funds could be available in just 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. This company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount to be paid, including any interest, fees or charges. This is then broken down 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 the management of cash flow, company remodeling, marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
About the Larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges 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 the flow of cash.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to be trading for at least 3 years with an annual turnover of $700K. It is necessary to 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 business.
How can the funds be used for?
A Business Loan of a larger size can be used for nearly all business purpose including company renovations, purchase of inventory or new equipment or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is by way of charge on assets, and could include the registration of this in the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally based rather than stipulating the security of a specific asset. The person who signs the guarantee is personally accountable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR grants preference over private property granted in accordance with the date on which a registration of a security interest.
An affidavit is an official form of document to provide the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250,000 we can offer a preliminary pre-approval to help make the process. We might be able to apply for this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial health questions. It’s in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer that you might receive could be subject to different terms.
The application process
Are I eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Complete the online form in just a few minutes, and a dedicated company credit specialist will contact you to guide you.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent and 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer within an hour if you apply in quality company hours and let us utilise the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll provide an answer within one business day.
For the Larger Business Loan ($100K and up) we might be in a position to offer you with conditional pre-approval within 6 hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard company hours. You can also let us use the advanced bank verification system link to confirm your bank details online. If you opt to upload documents from your account statement, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we can often provide an answer in just one hour – as long as you submit your request in normal business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements we can offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be likely to provide you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The most effective method is to ensure you apply during standard business hours. Also, permit us to use the modern bank verification to instantly verify your bank information online. If you choose to upload documents from your account statements, it will take a little 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 elements in order to assess what is the well-being of the business and the amount of the repayments your business is able to afford. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
If you apply for a set amount, we look at a range of aspects to assess your well-being for your company as well as the amount of repayments that your business can support. The amount you receive from your loan will depend on the specifics the company.
Fees & repayments
How much do you charge for an business loan?
When you request our company credit, we will assess the risk assessment that you have for your company and offer you with a customised offer including the loan amount, the terms and the interest rates. This business loan is an upfront-priced loan therefore you will know the exact amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I pay?
Business loan interest rates vary due to factors such as the amount that is of money borrowed, the business assets the funds will be used for and the sector the company operates in, the long the company has been operating, whether the business has sufficient cash flow to support the loan, and the general health as well as creditworthiness company.
What are the costs?
There are no hidden fees for our company loans, and you’ll know precisely what you need to pay and at what time, from the day you sign up. There’s no compounding interest and no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can apply for a loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of the loan at any point in time.
If you choose to take this route, please call our helpful business loans experts. They will provide you with details for repayment as well as an early payout amount. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the time of the early payout and 1.5% of the principal balance and any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear the ways we gather data, process, exchange and ensure the security of your information is of huge importance and a vital aspect 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 as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account information online. This allows us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an business owner borrows from the assets they have to make the funds for a loan. The asset can be a personal asset like the family home, or it could be a company asset like a truck or other piece of machinery.
The vast majority of lending institutions, even the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan then the asset could be sold by the lender. In essence it is the process of securing new financing taking advantage of the value of what you already own.
Do I need security to secure a business loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money but we do need the personal guarantee. So long as you comply with the loan terms (as stipulated in your loan contract) Asset security is not needed. For loans that exceed $150K, typically, you will need a personal guarantee and security that is in the form a charge over assets.