FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Banjup Small Business Loans
Let me know about the Banjup Small Business Loans
Banjup unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
The application for this Small Business Loan in under 10 minutes online or over the phone, receive 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. Our business loan is a cash-based loan so you will know in advance the total amount payable including the interest, fees and charges. This is then broken down into either weekly or daily installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including the management of cash flow, business remodels and marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal use.
About larger Banjup Business Loans
What is the Larger Banjup Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the business needs to be operating for a minimum of 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funding be used for?
A large business loan can be used for almost all business use, including business renovations, to purchase new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This can be done in the form of a charge against assets, and could include registering this in the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally in nature rather than stipulating the security of a specific asset. The person who signs the ensure is personally responsible if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR gives the priority of personal property assigned according to the date a security interest that is registered.
The caveat can be described as a formal document lodged to provide notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan of more than $250,000 we can offer an initial pre-approval to simplify the process. We may be able to do this without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial well-being questions. It is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could have different conditions.
The application process
Can I be eligible for funding?
You can apply 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 prove at least 6 months of business (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 application process is fast and easy. Simply complete the online form in few minutes and an experienced business credit specialist will call you to help you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details for application including credit consent twelve months of bank statements, IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically provide a response in one hour, provided you make your application in standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statement, we’ll provide an answer in just one company day.
If you are applying for a Larger Business Loan ($100K or more) we could be able to offer you with conditional pre-approval within six hours. After you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some agreements have been approved within just 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard company hours, and allow us to use the modern bank verification link to instantly check your bank’s information online. If you decide to send us the copies of bank accounts, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we can often provide an answer in just one hour, provided you make your application at normal business times and permit us to use the bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements, we will be able to offer the decision within one business day.
For the Larger Business Loans ($100K up to $500,000) we may be capable of provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some agreements have been approved in the space of 24 hours.
The most efficient method can be ensure you apply during normal business hours and permit us to use the sophisticated bank verification to verify your bank information online. If you send us copies of your bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of variables that determine the well-being of the company and the level of repayments that your company is able to afford. The total amount of your loan will depend on the specific circumstances that are unique to your company.
When you make an application for a set amount, we look at a range of variables to assess the health for your company as well as the amount of repayments that your business will be able to support. The amount you receive from your loan will depend on the specifics for your company.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to request our company loans, we will assess the risk assessment of your business and offer you with a tailored offer that includes the amount of loan, the term and interest rates. It is a business loan is a loan that is priced upfront which means you be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I pay?
Business loan interest rates vary due to factors such as the amount that is of money borrowed, the company assets the money are used to purchase and the sector the business is operating in, how long the company has been operating, whether the company has sufficient cash flow to fund the loan, and general well-being or creditworthiness of the company.
What are the fees?
There are no hidden costs with our company loans. You’ll know precisely what you need to pay and when, starting from day one. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You can apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the expenses involved in establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can choose to repay the entire amount of the loan early at any time.
If you decide to pursue this option, please call our helpful business loans specialists. They’ll provide you with repayment details as well as an early payout amount. The figure will be calculated as the total of the principal remaining and the accrued interest up to the time of early payout and 1.5 percent of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To ensure 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 your designated company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect the information we collect, use, share and ensure the security of your information is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We use an advanced banking verification system to immediately verify the bank account details online to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the business owner utilises an asset that they own to get a loan. The asset could be an individual property, such as the family home, or it could be a business property like a truck or other piece of machinery.
The vast majority of banks, not just the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan, then the asset could be transferred to the lender. In essence it is the process of securing new financing by using the value of what you already own.
Should I need security to get a business loan?
For loans of up to $150K, there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. need a personal guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract document) the security of assets is not needed. For loans of over $150K generally, you can get personal ensure and security that is in the form charges on assets.