FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Brookwater Small Business Loans
Let me know what you think of the Brookwater Small Business Loans
Brookwater unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an ordinary company loan?
It is possible to apply for the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and the money could be available in just 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. The company loan is a loan that is priced upfront so you will know in advance the total amount due, which includes any interest, fees or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company use, including managing cash flows, company renovations, marketing, to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
About the Larger Brookwater Business Loans
What is the Larger Brookwater Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. You must be 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 prove at minimum 12 months of business.
What can the funding be used for?
A larger business loan can be used to fund almost all company reason, such as company remodeling, buying inventory or new equipment as well as for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is by way of charge on assets and can include the registration of this on the PPSR or the registration of a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature rather than specifying the security of a specific asset. The person who is signing the ensure is personally responsible if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
A caveat is a legal document filed to offer an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of more than $250,000 it is possible to offer a preliminary pre-approval to help smooth out the process. We could be able to get this done without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes you answering some financial health checks. This is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you may receive may be on different conditions.
The application process
Are I eligible for funding?
You may apply for an business 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)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in just a few minutes, and an experienced company credit specialist will call you to guide you through the process.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s Licence), an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details for application including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within an hour if you submit your request within quality business hours and you allow us to utilise the bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statement, we’ll provide a decision within the span of one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be capable of provide you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this can be quicker based 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. Also, allow us to use our advance bank verification to instantly verify your bank account information online. If you choose to upload duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we can often offer a response in one hour, provided you apply in standard business time and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll offer the decision in just 1 business day.
For the Larger Business Loans ($100K to $500K) we could be capable of offer you with pre-approval conditional to your application within about six hours. Once 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 transactions have received approval within the space of 24 hours.
The most efficient method can be ensure you apply during standard business hours and let us use the advance bank verification link to confirm your bank details online. If you decide to send us the copies of bank statements it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of elements that determine what is the well-being of your business and the level of the repayments your business will be able to support. The total amount of your loan will depend on the particular circumstances of your business.
When you make an application for a particular amount, we look at a range of aspects to determine how much we can lend you such as health of the business and the extent of the repayments your company can support. The amount you receive from the loan will be determined by the particulars for your company.
Fees & repayments
How much should you charge for an business loan?
When you apply for our business financing, we’ll assess the risk assessment for your business and provide an individualised offer, including loan amount, term and interest rates. This company loan is an upfront priced loan which means you be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Business loan interest rates depend on several variables like the amount to be that is borrowed, what company assets the money are used to purchase as well as the field the business is in, how long the company has been in operation and what percentage of the company has enough cash flow to fund the loan, and general well-being or financial standing of the company.
What are the cost?
There are no hidden fees for our business loans, and you’ll be aware of the amount you need to pay and when, starting from the day you sign up. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to request a credit loan absolutely no upfront cost and no any obligation to sign up.
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. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan early?
You can repay the entire amount of your advance loan at any time.
If you decide to take this route, please call our helpful business lending professionals. They’ll provide you with details on repayment and an early payout figure. The figure will be calculated as the total of the principal amount remaining plus any accrued interest as of the date of early payout and 1.5% of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To make sure you do not miss payments and to work your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being upfront about how we collect the information we collect, use, share and ensure the security of your information is of huge importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to customer security and security. We use an advanced bank verification system that allows you to instantly verify the bank account details online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner utilises assets they own to secure a loan. The asset could be an asset belonging to the personal, like the family home or an company asset like a truck or piece or equipment.
The vast majority of banks, not just the major banks, prefer to secure loans against an asset. If you are having difficulty paying back the loan, then the asset might be taken over by the lender. In essence it’s an opportunity to secure additional financing using the value of what you already have.
Are I require security for an company loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money However, we do require a personal guarantee. So long as you comply with the loan terms (as specified in the loan contract) the security of assets is not required. If you take out loans in excess of $150K generally there is a personal guarantee and security in the form a charge over assets.