FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Banksia Grove Small Business Loans
Let me know how you can avail the Banksia Grove Small Business Loans
Banksia Grove unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
The application to get 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 business loans reference an annual rate of interest along with other charges and fees. This company loan is a pre-paid loan so you will know in advance the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company reason, such as the management of cash flow, company remodels and marketing to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal purposes.
About Larger Banksia Grove Business Loans
What is the Larger Banksia Grove Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined 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 that is this large the business needs to have been operating for at least three years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size is a great option for almost every business reason, such as business remodeling, buying new equipment or inventory or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This is by taking a charge over assets, and could be registered with the PPSR or filing as a caveat.
A director’s or personal guarantee is a promise to repay a loan which is generally based rather than defining the security of a specific asset. The person who is signing the guarantee is personally accountable if the company creditor is unable to repay the debt.
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 permits priority over personal property to be assigned according to the date the security interest was registered.
The caveat can be described as a formal form of document to offer the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250K, we may offer a preliminary pre-approval to help ease the process. It is possible to get this done without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes you answering some financial well-being checks. This is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you are offered could be on different terms.
Application process
Do I qualify for funds?
You can apply for a company 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 prove at least 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Just complete the online application within a couple minutes, and a dedicated company lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we can often offer an answer within an hour, provided you submit your request within standard company timings and permit us to utilise the bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements we can provide the decision in just an company day.
For the Larger Business Loan ($100K or more) we could be in a position to offer you with pre-approval conditional to your application in about six hours. After you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved in 24 hours.
The most effective method for you to apply is ensure you apply during standard business hours. You can also permit us to use the advanced bank verification system to instantly confirm your bank details online. If you upload duplicates of your banking statements it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we typically provide a response in one hour if you submit your request during standard business times and let us use the bank verification system to immediately verify your bank account information online. If you decide to upload copies of your bank statements we can provide a decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we might be likely to offer you with conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The fastest method can be ensure you apply during standard business hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you choose to send us documents from your account statements, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount we consider a variety of factors that determine how much we can lend you health that is your company and the level of payments your business can afford. The total amount of the loan will be determined by the specifics that are unique to your company.
If you apply for a set amount, we will consider a number of factors to assess how much we can lend you such as health that is your company and the extent of payments your business will be able to support. The amount you receive from the loan will be determined by the particulars that are unique to your business.
Fees & repayments
How much do you charge for an business loan?
If you decide to request our company credit, we’ll assess the risk profile of your business and provide an individualised offer, including the amount of loan, the term and interest rates. It is a company loan is a loan that is priced upfront therefore you will know the exact amount payable including any interest rates, fees or charges.
What is the basis for the rate I pay?
Business loan interest rates differ based on various factors including the amount that is borrowed, what business assets the funds will be used for as well as the field the company operates in, how long the company is in operation as well as how long the company has enough cash flow to cover the loan, and the overall well-being or creditworthiness of the company.
What are the costs?
There are no hidden fees for our business loans, and you’ll know precisely what you need to pay, and when, starting from day one. There’s no compounding and the loan comes with no additional fees (as as you make your payments in time).
We do not charge an Application Fee. You are able to apply for a loan without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can decide to repay the entire amount of the loan in full at any time.
If you are deciding to pursue this option, please contact our helpful company credit professionals. We will provide you with details for repayment as well as an early payout amount. This will be calculated as the sum of the principal remaining and accrued interest to the time of early payout, plus 1.5% of the principal balance plus any outstanding fees.
How do you make repayments work?
To make sure you do not miss payments and to work with your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about how we collect the information we collect, use, share and safeguard your data, is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We make use of an advanced bank verification system link to instantly confirm your bank account information online so we can offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner makes use of assets they own to get the loan. The asset can be an individual property, such as the family home or a business asset like a truck or other piece of machinery.
The majority of banks, even the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan then your asset may be transferred to the lender. In essence, it is means of securing new funding using the value of what you already own.
What do I need security to get an company loan?
For loans that exceed $150K, there is no requirement for asset security upfront to access the money, however we require a personal guarantee. require the personal guarantee. So long as you comply with the loan terms (as stated in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans of over $150K typically, you will need personal guarantee and security in the form of charges on assets.