FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Perth Small Business Loans
Tell me how you are able to avail the Perth Small Business Loans
Perth unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from an traditional company loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and funds may be on your account within 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. Our business loan is a pre-paid loan so you will know in advance the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company use, including cash flow management, business remodels and marketing, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Perth Business Loans
What is the Larger Perth Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been trading for at least 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be used for?
A Larger Business Loan can be used to fund almost any company reason, such as company renovations, purchase of equipment or inventory, as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It is usually as a result of an charge over assets and can include the registration of this on the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally based rather than stating the security for a particular asset. The person signing the guarantee is personally liable if the business 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 lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR gives priority over personal property to be assigned depending on the date that a security interest that is registered.
Caveats are legal form of document to provide the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K, we may offer a preliminary pre-approval to help ease the process. We might be able to do this without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health checks. It’s not an offer or guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you might receive could be on different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for an 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)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application within a couple minutes, and an experienced business loan specialist will call you to help you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K to $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, and interim current financial year financials including Aged Payables, Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we typically offer an answer in just one hour if you make your application during standard business timings and let us make use of the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements , we will be able to provide a decision within an business day.
For the Larger Business Loan ($100K or more) we might be likely to offer you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be quicker based on the circumstances of each application. Certain offers have been approved within less than 24 hours.
The quickest method would be to ensure you apply during standard business hours, and allow us to use the advance bank verification to instantly check your bank’s information online. If you choose to upload the copies of bank statements it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we usually provide an answer within one hour – provided you make your application within normal business hours and let us use the bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your banking statements, we will be able to provide a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be in a position to provide you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Certain transactions have received approval in just 24 hours.
The fastest way would be to ensure you apply during standard business hours. You can also allow us to use the advance bank verification link to instantly verify your bank information online. If you upload the copies of bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of variables that determine the health of the company as well as the amount of repayments your company is able to afford. The amount you receive from your loan will depend on the particular circumstances of your business.
If you apply for a set amount, we will consider a number of elements to determine your health that is your business and the extent of repayments that your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances of your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to make an application for one of our business loan, we will assess the risk profile that you have for your company and offer an individualised offer that includes loan amount, term and the interest rates. A company loan is a loan that is priced upfront which means you be aware of the total amount due, which includes any interest rates, fees or charges.
What determines the rate that I am charged?
Interest rates for business loans rates vary due to factors like the amount of money borrowed, what business assets the money will be used for in addition to the industry that the business is in, how long the company has been running as well as in the event that the business has sufficient cash flow to fund the loan, and the overall health and creditworthiness of the company.
What are the cost?
There are no hidden fees for our company loans. You’ll be aware of the amount you need to pay, and when, starting from the very first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You can get a cash loan with without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan early?
You can repay all of your loan in full at any time.
If you decide to do this please contact our helpful business credit specialists. They will provide you with repayment details and an early payout figure. This will be calculated as the sum of the principal balance and any accrued interest at the time of the early payout and 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To make sure you do not miss payment dates and to align with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about how we collect the information we collect, use, share and protect your information, is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account details online so we can provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an business owner utilises an asset that they own to secure the loan. The asset can be either an individual property, such as the family home, or a company property like a truck or piece or equipment.
The vast majority of the lenders not just the banks with the biggest size, prefer to secure loans against assets. If you’re having trouble paying back the loan, your assets could be taken over by the lender. In essence it is an opportunity to secure new financing taking advantage of the value of what you already have.
What do I require security to secure a business loan?
For loans of up to $150,000, no asset security is required before you are able to access the money however, we do need a personal guarantee. In the event that you fulfill your loan obligations (as stipulated in your loan contract), asset security will never be needed. For loans that exceed $150K, typically, you will need an individual ensure and security in the form of charges on assets.