FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Beechboro Small Business Loans
Tell me more about Beechboro Small Business Loans
Beechboro unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
The application for this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and the money could be in your account within 24 hours. Traditional business loans are based on an annual interest rate plus other fees and charges. We offer a company loan is a loan that is priced upfront so you will know ahead of time the total amount payable including any fees, charges or charges. Then, it is broken down into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company use, including the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan cannot be used for personal reasons.
About larger Beechboro Business Loans
What is the Larger Beechboro Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been operating for at least three years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 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 I use the funds for?
A larger business loan is a great option for almost all company use, including company renovations, to purchase new equipment or inventory as well as for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It’s by way of charge over assets, and could include registration on the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is generally in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally accountable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR gives priority over personal property to be assigned according to the date the security interest that is registered.
An affidavit is an official form of document to provide notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250K we may be able to provide a preliminary pre-approval to help smooth out the process. We could be able to apply for this without a credit check, and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial health checks. It is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you receive could be subject to different conditions.
Application process
Can I be eligible for funding?
You can apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in just a few minutes, and an experienced company lending specialist will contact you to guide you.
To apply for up $100,000, you’ll need ID details (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent and 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we typically provide a response in one hour – as long as you submit your request during standard company time and let us use the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statement, we’ll offer a decision within 1 business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be capable of offer the conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Some offers have been approved in the space of 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours. You can also allow us to use our advanced bank verification system to instantly verify your bank account information online. If you decide to upload duplicates of your banking statement, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer in just one hour if you submit your request within standard business timings and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements, we are able to provide an answer in just one business day.
For Larger Business Loans ($100K and up) we may be in a position to offer the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved within 24 hours.
The fastest way can be make sure you apply during standard business hours. Also, let us use the sophisticated bank verification link to check your bank’s information online. If you upload copies of your bank accounts, it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount we will consider a number of aspects to determine how much we can lend you well-being for your business and the amount of payments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances for your business.
When you apply for a particular amount, we consider a variety of variables to assess your health of the business and the extent of repayments your company is able to afford. The total amount of your loan will be contingent on the particulars that are unique to your business.
Fees & repayments
How do you charge for an business loan?
If you decide to apply for one of our company loan, we’ll assess the risk assessment of your business and offer an individualised offer including loan amount, term and the interest rates. The company loan is an upfront cost loan and you’ll know in advance the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I will be charged?
Business loan interest rates vary due to factors such as the amount that is of money borrowed, the company assets the money will be used for and the sector the business is in, how long the company is in operation and how long the business has sufficient cash flow to fund the loan, as well as the general well-being and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our company loans. You’ll be aware of the amount you need to pay, and when, right from the first day. There’s no compounding interest, and no extra fees (as long as you make your payments in time).
We do not charge an Application Fee. You are able to make an application for loans with without any upfront costs or any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan earlier?
You may choose to pay back the total amount of your loan in full at any time.
If you decide to pursue this option, please speak to our friendly business loans professionals. They will provide you with repayment details and an early payment figure. This is calculated as the total of the principal remaining and accrued interest to the time of the early payout in addition to 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To ensure you do not miss payments and to work your cash flow schedule, we provide payments that are either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect the information we collect, use, share and secure your information, is vital and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We use an advanced bank verification system to immediately confirm your bank account information online, allowing us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner utilises assets they own to obtain the funding. The asset can be an individual asset, such as the family home or it could be a company property like a truck or piece of equipment.
The vast majority of banks, including the banks with the biggest size, prefer to secure loans against assets. If you’re struggling to pay back the loan, then your assets could be sold by the lender. In essence it’s an opportunity to secure new funding using the worth of the asset you already have.
What do I require security for a company loan?
Up to $150K in loans the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. require a personal guarantee. As long as you follow your loan obligations (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally, there is personal guarantee and security is provided in the form of the charge of assets.