FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Perth Small Business Loans
Let me know how you are able to avail the Perth Small Business Loans
Perth unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an traditional business loan?
It is possible to apply to your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and the funds could be on your account within 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. The company loan is an upfront priced loan therefore you’ll know ahead of time the total amount due, which includes the interest, fees and charges. Then, it is broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company use, including control of cash flow business remodels and marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal use.
About the Larger Perth Business Loans
What is the Larger Perth Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to have been operating for at least three years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A larger business loan is a great option for almost every company reason, such as company renovations, purchase of equipment or inventory, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This is by way of charge on assets, and could include registering this with the PPSR or filing a caveat.
A personal or director’s guarantee is a promise to repay a loan which is generally in nature rather than stipulating security over an asset. The person who is signing the ensure is personally responsible if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR permits the priority of personal property granted according to the date a security interest that is registered.
An affidavit is an official document that is filed to offer the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that is greater than $250,000 we can offer an initial pre-approval to make the process. We could be able to make this decision without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial well-being checks. This is not an offer or guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you might receive could be based on different conditions.
The application process
Are I eligible for funding?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for a 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 quick and simple. Just complete the online application in just a few minutes, and a dedicated company loan specialist will be in touch to help you.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details including credit consent as well as 12 months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K or more) we typically offer an answer in just one hour, provided you apply during quality business timings and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statements we can provide a decision in just 1 company day.
For the Larger Business Loan ($100K or more) we might be likely to offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved within the space of 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours, and allow us to use our advance bank verification link to verify your bank account information online. If you decide to upload the copies of bank statements , it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour, provided you submit your request at normal business time and let us use the bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements, we are able to provide a decision within an business day.
For the Larger Business Loans ($100K or more) we might be likely to offer you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The fastest method can be ensure you apply during normal business hours and let us use the modern bank verification to check your bank’s information online. If you send us duplicates of your banking accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of variables that determine what is the health of your business and the extent of payments your business is able to afford. The total amount of your loan will be contingent on the particular circumstances of your business.
When you make an application for a particular amount, we will consider a number of aspects to assess the well-being of your business and the level of payments your company can afford. The amount you receive from your loan will be determined by the specific circumstances of your company.
Fees & repayments
How much should you charge for a business loan?
When you request business loans with us company loan, we will assess the risk assessment of your company and provide you with a tailored offer including the loan amount, the terms and the interest rates. This business loan is a loan that is priced upfront therefore you will be aware in advance of the total amount payable including any interest rates, fees or charges.
What determines the rate that I’m charged?
The interest rates on company loans rates differ based on various factors like the amount of money borrowed, what business assets the money will be used for as well as the field the company operates in, the long the company is in operation, what percentage of the business has enough cash flow to fund the loan, and the overall well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our business loans, and you’ll be aware of the amount you need to pay, and when, right from the first day. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan early?
You can decide to repay the entire amount of the loan early at any time.
If you do decide to do this please talk to one of our helpful company loans specialists. We will provide you with the details of your repayment and an early payment figure. The figure will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payout in addition to 1.5% of the remaining principal and any outstanding fees.
What are the repayment methods?
To ensure you do not miss payments and to work your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being transparent about the ways we gather information, use it, and exchange it, as well as safeguard your data, is vital and is an essential part of our relationship 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 information and our funders are ISO 27001 certified for our commitment to security for our clients and security. We make use of an advanced bank verification system link to immediately verify your bank account information online to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses the assets they have to make a loan. The asset can be an asset belonging to the personal, like the family home or it could be a business property like a truck or other piece of machinery.
The vast majority of lenders, not just the banks with the biggest size, prefer to secure loans against assets. If you’re struggling to pay back the loan, the asset might be sold by the lender. In essence, it is an opportunity to secure new financing by making use of the value of what you already own.
What do I require security for an company loan?
Up to $150K in loans the requirement for asset security is not required before you can access the money However, we do need an individual guarantee. In the event that you fulfill the loan terms (as detailed in your loan contract document) Asset security will never be needed. If you take out loans in excess of $150K generally, there is personal ensure and security that is in the form the charge of assets.