FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The East Brisbane Small Business Loans
Let me know what you think of the East Brisbane Small Business Loans
East Brisbane unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and the funds could be available in just 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. This business loan is a pre-paid loan which means you be aware of the total amount due, which includes any interest, fees or charges. This is then broken down into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business reason, such as the management of cash flow, company renovations, marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
About larger East Brisbane Business Loans
What is the Larger East Brisbane Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been in operation for at least 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size can be used to fund almost every company reason, such as company 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 purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This can be done by taking a charge over assets and can include registration with the PPSR or filing as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally based rather than stipulating security over a particular asset. The person who signs the ensure is personally accountable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
A caveat is a legal document lodged to offer the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250,000 it’s possible to offer an initial pre-approval to simplify the process. We might be able to apply for this without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial well-being checks. It is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could be on different terms.
Application process
Do I qualify for funds?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of 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 within a couple minutes, and an experienced business lending specialist will call you to assist you.
To apply for up $100,000, you’ll require ID details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent, 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour – as long as you submit your request at standard business time and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we will be able to offer a decision within just 1 business day.
For the Larger Business Loan ($100K or more) we may be able to provide the conditional pre-approval within about six hours. After you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Certain deals have been approved in just 24 hours.
The quickest method can be ensure you apply during standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to upload the copies of bank accounts, it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within an hour – as long as you make your application during standard business time and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements we can provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to provide you with pre-approval conditional to your application within six hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved in just 24 hours.
The fastest way would be to ensure you apply during normal business hours and let us use the advance bank verification to instantly check your bank’s information online. If you decide to upload duplicates of your banking statements it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we will consider a number of variables that determine your well-being of your company and the amount of repayments that your business will be able to support. The total amount of your loan will depend on the specific circumstances of your company.
If you apply for a specific amount we consider a variety of factors to determine the well-being of the company and the extent of repayments your business can afford. The total amount of your loan will depend on the specifics that are unique to your business.
Fees & repayments
How much should you charge for a business loan?
When you make an application for one of our business loan, we will assess the risk assessment the company and offer you with a tailored offer including loan amount, term and interest rates. It is a business loan is an upfront-priced loan so you will know in advance the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I will be charged?
Business loan interest rates depend on a variety of factors including the amount borrowed, what business assets the funds will be used for, the industry the business operates in, how long the business has been in operation and whether the business has sufficient cash flow to pay for the loan, and the overall health or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs with our business loans, and you’ll be aware of the amount you’ll be required to pay and when, right from the day you sign up. There’s not any compounding interest and there are no additional charges (as as you make your payments on time).
We do not charge an Application Fee. You are able to request a credit loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan earlier?
You can decide to repay the entire amount of the advance loan at any time.
If you do decide to take this route, please speak to our friendly business loans experts. We will offer you with details for repayment along with an early payout estimate. This is calculated as the total of the principal balance and the accrued interest up to the time of early payout and 1.5 percent of the remaining principal and any outstanding fees.
What are the repayment methods?
To make sure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about the ways we gather the information we collect, use, share and safeguard your data, is vital and a vital part 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 financial information and our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We employ an exceptionally sophisticated bank verification system that allows you to instantly verify your bank account information online to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner makes use of assets they own to get a loan. The asset can be an asset belonging to the personal, like the family home or it could be a business property like a truck or piece of equipment.
The vast majority of lenders, including the big banks, tend to guarantee loans against an asset. If you’re struggling to pay back the loan then your asset may be transferred to the lender. In essence, it’s a way of securing new funding taking advantage of the value of what you already have.
Should I need security to secure an company loan?
For loans up to $150,000 no asset security is required upfront to access the money however, we do require an individual guarantee. If you adhere to the terms of your loan (as detailed in your loan contract document), asset security is not needed. For loans that exceed $150,000, typically, you will need personal guarantee and security in the form of charges on assets.