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 of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from a traditional company loan?
It is imaginable to apply to your Small Business Loan in under 10 minutes online or over the phone, receive an instant response and have the funds in your account within 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. This company loan is a loan that is priced upfront and you’ll be aware of the total amount due, which includes any interest, fees or charges. This is then broken down into either weekly or daily payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost every business purpose including managing cash flows, company renovations, marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal reasons.
Concerning Larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to be operating for a minimum of 3 years, and have an annual income of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be utilised?
A Larger Business Loan can be used for almost all business reason, such as company renovations, to purchase equipment or inventory or as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. This can be done in the form of a charge against assets, and could include registration on the PPSR or making a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is general in nature, rather than stipulating security over an asset. The person who signs the guarantee is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including items or assets). The PPSR allows priority over personal property to be granted in accordance with the date on which a security interest has been registered.
A caveat is a legal document lodged to offer notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger business loans of more than $250K, we may offer an initial pre-approval in order to simplify the process. We may be able to do this without a credit verification and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial health questions. It is neither an offer nor a guarantee of financing. Acceptance without condition is subject to a full credit assessment and any offer that you are offered could be based on different terms.
The application process
Are I eligible for funding?
You can apply 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 worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a few minutes and an experienced business lending specialist will contact you to help you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $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: Details of the application, including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within one hour – as long as you submit your request during quality company timings and let us utilise the bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statement, we’ll offer an answer within the span of one business day.
For Larger Business Loans ($100K to $500K) we could be likely to provide you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the specifics of each application. Some transactions have received approval within 24 hours.
The quickest way to apply is to make sure you apply during normal business hours, and allow us to use the advanced bank verification system to confirm your bank details online. If you opt to upload documents from your account statement, it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within one hour, provided you make your application at standard business times and allow us to use the bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we’ll be able to offer a decision within 1 business day.
For Larger Business Loans ($100K or more) We may be in a position to provide you with a conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The most effective method would be to make sure you apply during standard business hours. You can also permit us to use the sophisticated bank verification link to instantly check your bank’s information online. If you choose to send us copies of your bank statements it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount, we take into consideration a range of elements for determining your health of the business and the amount of repayments your business can support. The total amount of the loan will be determined by the specific circumstances for your company.
When you submit an application for a particular amount, we consider a variety of factors to assess your well-being for your business and the amount of the repayments your business can afford. The amount you receive from your loan will be determined by the specifics for your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you make an application for one of our business loan, we’ll assess the risk assessment for your business and offer you with a customised offer, including loan amount, term and the interest rates. It is a business loan is an upfront priced loan and you’ll know in advance the total amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, what company assets the funds are used to purchase and the sector the company is operating in, how long the company is in operation for, in the event that the company has enough cash flow to support the loan, and the general health and creditworthiness of the business.
What are the fees?
There are no hidden fees for our business loans. You’ll know precisely how much you’ll be required to pay and at what time, from day one. There’s no compounding and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You are able to make an application for loans absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan early?
You can choose to repay the entire amount of your loan early at any time.
If you do decide to pursue this option, please speak to our friendly business credit specialists. We will provide you with details on repayment as well as an early payout amount. It will be calculated using the sum of the principal amount remaining and the accrued interest up to the time of early payout and 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing the ways we gather data, process, exchange and ensure the security of your information is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to security for our clients and security. We employ a highly sophisticated bank verification system that allows you to instantly verify the bank account details online to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an company owner borrows from the assets they have to secure the loan. The asset could be an individual property, such as the family home or a company property like a truck or piece or equipment.
The vast majority of banks, not just the big banks, tend to make loans secured by assets. If you’re having trouble paying back the loan, your assets could be taken over by the lender. In essence, it’s the process of securing new financing making use of the value of what you already own.
Should I require security for a company loan?
Up to $150K in loans there is no requirement for asset security before you are able to access the money However, we do need a personal guarantee. So long as you comply with the terms of your loan (as detailed in your loan contract document) Asset security is not required. For loans over $150K typically, you will need the option of a personal guarantee and security in the form an asset charge.