FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Brisbane Small Business Loans
Tell me about the Brisbane Small Business Loans
Brisbane unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an ordinary business loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and funds may be in your account within 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. We offer a company loan is a cash-based loan which means you know in advance the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company need, such as managing cash flows, business improvements, advertising to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal purposes.
About the 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 business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been operating for at least three years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funds for?
A larger business loan is a great option for almost all company reason, such as business improvements, purchasing inventory or new equipment for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It’s by way of charge against assets and can be registered with the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is general in nature rather than specifying security over a particular asset. The person signing the ensure 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 run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR gives priority over personal property to be granted depending on the date that a security interest was registered.
A caveat is a legal form of document to offer an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250,000 it’s possible to offer a preliminary pre-approval to help ease the process. We may be able to do this without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial health questions. This is not an offer of credit or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer you might receive could have different conditions.
The application process
Do I have the right to receive funds?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in few minutes and an experienced business lending specialist will be in touch to help you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s License) and an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent as well as 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we typically offer an answer in just one hour if you make your application within standard company hours and allow us to utilise the bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements , we are able to provide the decision in as little as 1 business day.
For Larger Business Loans ($100K up to $500,000) we may be likely to offer you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some agreements have been approved in 24 hours.
The quickest method is to ensure you apply during normal business hours, and allow us to use the advanced bank verification system link to check your bank’s information online. If you send us the copies of bank statements , it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer in just one hour, provided you submit your request within normal business times and allow us to use the bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statement, we’ll offer a decision in as little as an business day.
For the Larger Business Loans ($100K and up) we may be able to offer the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some transactions have received approval within less than 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours, and permit us to use the modern bank verification link to verify your bank account information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a specific amount we will consider a number of elements to determine what is the health of the company and the level of payments your business will be able to support. The total amount of the loan will be determined by the specifics the company.
If you apply for a set amount, we take into consideration a variety of factors to assess your well-being for your company and the level of repayments your company can afford. The amount you receive from your loan will be determined by the particular circumstances of your company.
Fees & repayments
How much should you charge for an company loan?
When you make an application for the company credit, we’ll assess the risk profile for your company and offer you with a customised offer that includes loan amount, term and interest rates. A company loan is an upfront priced loan which means you be aware in advance of the total amount payable including any charges or interest.
What determines the amount I am charged?
The interest rates on business loans rates differ based on various factors including the amount 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 company has been running, how long the company has sufficient cash flow to pay for the loan, as well as the overall well-being and creditworthiness of the company.
What are the fees?
There are no hidden costs for our business loans. You’ll know exactly how much you’ll be required to pay, and at what time, from day one. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You can apply for a loan 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 cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan early?
You can choose to repay all of your loan early at any time.
If you are deciding to do this please speak to our friendly business credit professionals. The experts will provide you with repayment details and an early payment figure. The figure will be calculated as the total of the principal remaining and the accrued interest up to the time of the early payout plus 1.5 percent of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing the ways we gather, use, exchange and protect your information, is of huge importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to security for our customers and security. We utilise a sophisticated banking verification system to instantly verify the bank account details online to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner uses an asset they own to make the funding. 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, including the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, then the asset might 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.
Are I require security to secure an company loan?
Up to $150,000 in loans no asset security is required in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. If you adhere to the loan terms (as stated in the loan contract) Asset security is not required. For loans over $150,000 typically, you will need personal ensure and security in the form the charge of assets.