FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Bull Creek Small Business Loans
Tell me how you can avail the Bull Creek Small Business Loans
Bull Creek unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an traditional business loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and funds may be available in just 24 hours. Traditional company loans refer to an annual interest rate plus other fees and charges. Our business loan is a loan that is priced upfront which means you know in advance the total amount to be paid, including any fees, charges or charges. Then, it is broken down into either weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business use, including cash flow management, business renovations, marketing to purchase inventory, new equipment, or as general working capital and much more. The loan is not available for personal use.
About Larger Bull Creek Business Loans
What is the Larger Bull Creek Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to have been trading for at least 3 years and have an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A Business Loan of a larger size can be used to fund almost all company need, including company renovations, to purchase equipment or inventory for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It’s as a result of an charge over assets, and may include the registration of this with the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to pay off a credit line that is general in nature, rather than stipulating the security for a particular asset. The person who signs the guarantee is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR allows preference over private property assigned according to the date a security interest that is registered.
An affidavit is an official form of document to offer an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger business loans that is greater than $250,000 we may be able to provide an initial pre-approval in order to simplify the process. We may be able to apply for this 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 a few financial health checks. It is not an offer of credit or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you may receive may be on different terms.
The application process
Are I eligible for funding?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a few minutes and a dedicated business loan specialist will be in touch to assist you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) and an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we usually offer an answer within one hour – as long as you apply in quality business time and allow us to utilise the bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statements , we’ll be able to provide a decision within just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be able to provide you with a conditional pre-approval within about six hours. After you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some offers have been approved in just 24 hours.
The fastest way is to ensure you apply during normal company hours and let us use the modern bank verification link to instantly confirm your bank details online. If you decide to upload the copies of bank statement, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide a response in one hour, provided you apply in standard business hours and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll offer the decision within an business day.
If you are applying for Larger Business Loans ($100K and up) we might be capable of provide you with a conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Some agreements have been approved in just 24 hours.
The quickest method can be ensure you apply during normal business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a certain amount we take into consideration a range of variables to determine your health that is your business as well as the amount of the repayments your company can support. The total amount of your loan will depend on the particular circumstances of your company.
When you make an application for a particular amount, we will consider a number of factors to assess how much we can lend you such as well-being of your business and the amount of the repayments your company will be able to support. The amount you receive from your loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to request one of our company loans, we will assess the risk assessment of your business and offer you with a customised offer, including the loan amount, the terms and interest rates. A company loan is an upfront priced loan which means you be aware of the total amount you will have to pay, including charges, interest rates or fees.
What is the factor that determines the price I pay?
The interest rates on company loans rates depend on a variety of factors including the amount of money borrowed, the company assets the money will be used for in addition to the industry that the business operates in, how long the company has been in operation, in the event that the business has sufficient cash flow to cover the loan, and the overall health or financial standing of the company.
What are the fees?
There are no hidden fees for our company loans, and you’ll be aware of the amount you be required to pay and when, right from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We don’t charge an application fee. You are able to get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of your advance loan at any time.
If you do decide to do this please talk to one of our helpful company lending experts. They will provide you with details for repayment as well as an early payout amount. This will be calculated as the total of the principal balance and the accrued interest up to the time of early payment plus 1.5 percent of the principal balance and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss repayments and to fit in your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear how we collect data, process, exchange and safeguard your data, is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our clients and security. We use an advanced banking verification system to instantly verify your bank account information online. This allows us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner utilises an asset that they own to secure a loan. The asset can be either an individual asset, such as the family home, or a company asset like a truck or piece or equipment.
The majority of lending institutions, not just the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan, your assets could be offered for sale by the lender. In essence it is means of securing new funding using the value of what you already have.
What do I require security for an company loan?
For loans of up to $150K, no asset security is required in advance to gain access to the funds however, we require a personal guarantee. need an individual guarantee. As long as you follow your loan obligations (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans of over $150,000 generally, you can get a personal ensure and security that is in the form an asset charge.