FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Perth Small Business Loans
Let me know more about Perth Small Business Loans
Perth unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from a traditional company loan?
Apply for this Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and have the funds in your account in 24 hours. Traditional company loans reference an annual rate of interest together with additional fees and charges. This business loan is a loan that is priced upfront which means you be aware of the amount you will have to pay, including any fees, interest or charges. This is then divided into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company use, including managing cash flows, business remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal reasons.
About larger Perth Business Loans
What is the Larger Perth Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the company needs to have been operating for a minimum of 3 years, and have an annual income 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 to demonstrate at the least 12 months of operating.
How can the funding be utilised?
A larger company loan can be used for almost every company use, including business renovations, to purchase new equipment or inventory, as 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 to access funding over $150,000. This can be done by way of charge against assets and can include the registration of this with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is general in nature, rather than defining security over a particular asset. The person who signs the guarantee is personally liable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR allows preference over private property granted according to the date a security interest that is registered.
The caveat can be described as a formal document that is filed to offer the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan of $250K or more, we may offer an initial pre-approval to make the process. We may be able to apply for this without a credit check and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial well-being questions. It is not an offer or guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer that you receive could be on different terms.
Application process
Do I qualify for funds?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form in just a few minutes, and a dedicated business loan specialist will call you to guide you through the process.
To apply for up $100,000 you’ll need identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we typically offer an answer within an hour, provided you apply at standard company hours and let us utilise the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements we can provide a decision in just one business day.
For the Larger Business Loan ($100K and up) we may be able to offer you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be quicker based upon the circumstances for each application. Some offers have been approved in less than 24 hours.
The most effective method can be make sure you apply during normal company hours. Also, let us use the modern bank verification link to check your bank’s information online. If you opt to send us copies of your bank statements , it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour, provided you submit your request during standard business timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements we can offer the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we may be able to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Certain agreements have been approved within just 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours, and allow us to use the modern bank verification link to instantly verify your bank account information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we look at a variety of aspects for determining your well-being of your business and the extent of repayments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances of your business.
If you apply for a set amount, we look at a range of variables to determine how much we can lend you such as health that is your business and the level of repayments your company is able to afford. The total amount of your loan will be determined by the particulars the company.
Fees & repayments
What is the cost for the cost of a business loan?
When you make an application for our business financing, we’ll assess the risk profile of your business and provide an individualised proposal that includes the loan amount, the terms and the interest rates. A company loan is an upfront-priced loan which means you be aware of the total amount to be paid, including any charges or interest.
What determines the amount I am charged?
Business loan interest rates vary due to factors like the amount of money of money borrowed, the company assets the funds are used to purchase as well as the field the company operates in, the long the company has been operating as well as how long the company has sufficient cash flow to support the loan, and also the general well-being or financial standing of the company.
What are the cost?
There are no hidden fees for our company loans. You’ll know precisely what it is that you be required to pay, and when, right from the day you sign up. There’s no compounding interest and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an application fee. You can make an application for loans no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can decide to repay the entire amount of the loan in full at any time.
If you do decide to pursue this option, please speak to our friendly company loan experts. The specialists will offer you with the details of your repayment as well as an early payout amount. This will be calculated as the total of the principal amount remaining and any accrued interest at the time of early payment and 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
To help you avoid missing due dates and also to be in line with your cash flow general, we provide repayments either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear how we collect data, process, exchange and ensure the security of your information is vital and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We use an advanced bank verification system link to instantly verify your bank account information online to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner utilises an asset that they own to get the funding. The asset may be a personal asset like the family home, or an business property like a truck or piece of equipment.
The vast majority of lenders, even the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then the asset could be sold by the lender. In essence, it is an opportunity to secure new funding using the worth of the asset you already have.
Do I require security to secure a business loan?
For loans up to $150K no asset security is required in advance to gain access to the funds however, we require a personal guarantee. require the personal guarantee. As long as you follow the loan terms (as stated in your loan contract) Asset security will never be required. If you take out loans in excess of $150,000 typically, you will need the option of a personal guarantee and security in the form of a charge over assets.