FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Bald Hills Small Business Loans
Tell me what you think of the Bald Hills Small Business Loans
Bald Hills unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from the traditional business loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and have the funds available in just 24 hours. Traditional business loans refer to an annual rate of interest together with additional fees and charges. The company loan is a loan that is priced upfront and you’ll be aware of the total amount payable including any interest, fees or charges. This is then broken down into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every company need, such as managing cash flows, company renovations, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
About Larger Bald Hills Business Loans
What is the Larger Bald Hills Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to be trading for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan can be used for nearly every business purpose including business renovations, purchase of new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It is usually by way of charge over assets and can include the registration of this through the PPSR or registering as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is general in nature, rather than specifying the security for a particular asset. The person signing the ensure is personally liable in the event that the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR allows preference over private property granted according to the date the registration of a security interest.
A caveat is a legal form of document to provide an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting larger business loans that is greater than $250,000, we may offer an initial pre-approval to simplify the process. We may be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial health checks. It’s neither an offer nor a guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you are offered could have different terms.
The application process
Do I qualify for funds?
You may be eligible for a 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’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a few minutes and a dedicated business expert in lending will contact you to help you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s License) and an active 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 loan above $150K).
$250K to $500K: Application details including credit consent, 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within one hour if you apply within quality business hours and let us utilise the bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can provide an answer in as little as 1 business day.
For Larger Business Loans ($100K up to $500,000) we might be able to offer the conditional pre-approval within 6 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 upon the circumstances for each application. Certain agreements have been approved within just 24 hours.
The most efficient method is to ensure you apply during standard business hours. You can also allow us to use the advance bank verification link to instantly verify your bank account information online. If you upload documents from your account statements , it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we usually offer a response in one hour, provided you apply in standard business times and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements, we are able to offer a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K and up) We may be able to offer you with a conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some transactions have received approval within just 24 hours.
The fastest method can be make sure you apply during normal business hours. Also, let us use the advanced bank verification system link to check your bank’s information online. If you upload duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we consider a variety of factors for determining how much we can lend you well-being that is your business and the extent of repayments your company will be able to support. The total amount of your loan will be contingent on the specifics the company.
If you apply for a set amount, we take into consideration a variety of factors to determine your health of the business and the amount of payments your company can afford. The amount you receive from your loan will be determined by the particular circumstances for your business.
Fees & repayments
How much should you charge for a company loan?
When you request one of our business loan, we’ll assess the risk profile that you have for your company and offer an individualised proposal that includes the amount of loan, the term and the interest rates. It is a business loan is an upfront cost loan and you’ll be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I’m charged?
Interest rates for company loans rates depend on several factors including the amount borrowed, what company assets the money will be used for in addition to the industry that the business is in, how long the company is in operation, whether the company has sufficient cash flow to pay for the loan, and general well-being and creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our business loans. You’ll be aware of the amount it is that you be required to pay, and when, right from day one. There’s no compounding and no additional fees (as long as you make your payments on time).
We do not charge an application fee. You can apply for a loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay off the loan earlier?
You can choose to repay all of your loan at any point in time.
If you do decide to take this route, please talk to one of our helpful business loans specialists. The professionals will provide you with the details of your repayment and an early payout figure. This is calculated as the sum of the principal remaining and any accrued interest at the time of early payment, plus 1.5% of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To make sure you do not miss payments and to work your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being upfront about the ways we gather the information we collect, use, share and protect your information, is crucial and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We employ a highly sophisticated bank verification system that allows you to instantly verify the bank account details online so we can provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the company owner uses an asset they own to secure the loan. The asset can be either an asset belonging to the personal, like the family home or it could be a company asset such as a truck or piece or equipment.
The vast majority of lenders, even the major banks, prefer to make loans secured by assets. If you’re having trouble paying back the loan, your assets could be sold by the lender. In essence it is means of securing additional financing taking advantage of the value of what you already have.
What do I require security to secure a business loan?
Up to $150K in loans there is no requirement for asset security in advance to gain access to the funds however, we do require a personal guarantee. As long as you follow your loan obligations (as stipulated in your loan contract document) Asset security will never be required. For loans that exceed $150,000, generally, you can get personal guarantee and security that is in the form a charge over assets.