FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Perth Small Business Loans
Tell me more about Perth Small Business Loans
Perth unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from a traditional company loan?
The application for the Small Business Loan in under 10 minutes over the phone, receive an instant response and funds may be in your account within 24 hours. Traditional company loans refer to an interest rate per annum along with other charges and fees. This company loan is an upfront priced loan and you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. This is then broken down into a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business need, such as control of cash flow business renovations, marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
Concerning Larger Perth Business Loans
What is the Larger Perth Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be trading for at least 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used for nearly every business purpose including company renovations, purchase of new equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. This is by way of charge on assets, and could include registration in the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to repay credit that is general in nature, rather than specifying the security of a specific asset. The person who is signing the guarantee is personally responsible if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR allows preference over private property granted depending on the date that a security interest was registered.
Caveats are legal form of document to offer the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans that is greater than $250K, we may offer an initial pre-approval to smooth out the process. We might be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial well-being checks. It is not an offer or guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer you might receive could be on different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form within a few minutes and a dedicated business lending specialist will call you to guide you through the process.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also require:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent and 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer within one hour if you apply in standard business timings and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statement, we’ll offer a decision in as little as one business day.
For the Larger Business Loan ($100K to $500K) we may be capable of offer you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain deals have been approved in 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal company hours and allow us to use the advance bank verification link to check your bank’s information online. If you choose to send us the copies of bank statements it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we can often offer an answer in just one hour – as long as you apply in normal business timings and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statements, we are able to offer a decision in as little as the span of one business day.
For Larger Business Loans ($100K or more) We may be able to offer you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Some agreements have been approved in less than 24 hours.
The quickest method is to ensure you apply during standard business hours and let us use the sophisticated bank verification to check your bank’s information online. If you decide to upload documents from your account statements it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a specific amount we look at a variety of aspects to determine the health of your company and the extent of the repayments your company will be able to support. The total amount of your loan will depend on the particular circumstances for your business.
When you submit an application for a particular amount, we take into consideration a variety of factors to assess the well-being that is your company as well as the amount of repayments that your company can afford. The total amount of your loan will depend on the specific circumstances for your company.
Fees & repayments
What is the cost for an business loan?
When you apply for one of our company financing, we will assess the risk profile the business and provide you with a customised offer, including the loan amount, the terms and the interest rates. A business loan is an upfront priced loan so you will know in advance the total amount payable including any charges or interest.
What determines the rate that I am charged?
Business loan interest rates differ based on various factors like the amount of money borrowed, the company assets the funds will be used for as well as the field the company operates in, the long the business has been running for, how long the company has sufficient cash flow to fund the loan, as well as the overall health or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our company loans. You’ll know exactly how much you be required to pay, and when, starting from the first day. There’s not any compounding interest and no extra fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You are able to apply for a loan with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated with 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 off the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you choose to do this please talk to one of our helpful business lending professionals. They will offer you with repayment details as well as an early payout amount. This is calculated as the sum of the principal remaining and accrued interest to the date of early payout and 1.5 percent of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To make sure you do not miss due dates and also to be in line with your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about the ways we gather the information we collect, use, share and secure your information, is crucial and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We make use of an advanced bank verification system to immediately verify your bank account details online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner makes use of the assets they have to get the funds for a loan. The asset may be an individual asset, such as the family home, or it could be a company asset like a truck or piece or equipment.
The vast majority of banks, not just the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan, then your asset may be offered for sale by the lender. In essence it is an opportunity to secure new funding making use of the value of what you already own.
What do I require security for a business loan?
For loans of up to $150,000, there is no requirement for asset security upfront to access the money, however we do require the personal guarantee. In the event that you fulfill the loan terms (as stated in your loan contract), asset security will never be required. For loans over $150,000 generally, there is personal ensure and security in the form of an asset charge.
