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 can avail the Perth Small Business Loans
Perth unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 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?
It is possible to apply to get the Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and the funds could be in your account within 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. The company loan is an upfront priced loan and you’ll know in advance the total amount due, which includes the interest, fees and charges. Then, it is divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company reason, such as managing cash flows, business improvements, advertising for purchasing inventory or new equipment, or as general working capital and so much more. The loan is not available for personal use.
About 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. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size the business needs to be operating for a minimum of 3 years, and have an annual income of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be used for?
A larger business loan can be used for nearly any business purpose including company renovations, to purchase new equipment or inventory, as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It’s in the form of a charge on assets, which could also be registered through the PPSR or the registration of as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature rather than stating security over a particular asset. The person who signs the ensure is personally accountable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR allows the priority of personal property granted in accordance with the date on which a security interest that is registered.
An affidavit is an official document filed to provide the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan of $250K or more we can offer a preliminary pre-approval to help make the process. We may be able to apply for this without a credit check, and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial well-being questions. It’s not an offer or guarantee of financing. A conditional approval is subject a full credit assessment and any offer that you may receive may be subject to different terms.
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 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (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 fast and simple. Just complete the online application in just a few minutes, and an experienced company loan specialist will be in touch to guide you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer in just one hour, provided you submit your request at standard business times and you allow us to utilise the bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we are able to provide an answer within just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of offer you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some offers have been approved in less than 24 hours.
The fastest way can be make sure you apply during normal company hours. Also, permit us to use the advance bank verification to verify your bank account information online. If you send us the copies of bank statements it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) We can usually offer an answer within one hour – as long as you submit your request at normal business timings and let us use the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements, we’ll be able to offer a decision in just an business day.
If you are applying for Larger Business Loans ($100K and up) We may be capable of provide you with pre-approval conditional to your application within about six hours. After 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 circumstances of each application. Certain agreements have been approved in just 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours. Also, let us use the advanced bank verification system link to check your bank’s information online. If you choose to upload copies of your bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount we will consider a number of variables to determine what is the well-being of your business and the extent of repayments your company can support. The amount you receive from the loan will be determined by the specific circumstances the business.
If you apply for a particular amount, we take into consideration a variety of aspects to determine how much we can lend you such as health that is your company and the level of repayments that your company can afford. The total amount of your loan will depend on the particulars the business.
Fees & repayments
What is the cost for an business loan?
If you decide to make an application for our company financing, we will assess the risk profile the company and offer an individualised offer, including the loan amount, the terms and the interest rates. The company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I am charged?
Business loan interest rates depend on a variety of factors including the amount that is borrowed, what company assets the funds are used to purchase and the sector the company operates in, the long the business has been running and in the event that the company has enough cash flow to support the loan, and the general well-being and creditworthiness of the business.
What are the cost?
There aren’t any hidden costs with our company loans, and you’ll be aware of the amount it is that you need to pay and when, from the day you sign up. There’s no compounding and the loan comes with no additional fees (as as you make your payments punctually).
We do not charge an application fee. You can get a cash loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan earlier?
You can choose to repay the entire amount of your loan at any point in time.
If you are deciding to do this please call our helpful company loan professionals. We will offer you with repayment details and an early payment figure. It will be calculated using the sum of the principal amount remaining plus any accrued interest as of the time of early payout and 1.5% of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss payments and to work with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing the ways we gather, use, exchange and ensure the security of your information is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We utilise a sophisticated bank verification system that allows you to instantly confirm your bank account information online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an business owner utilises the assets they have to make the funding. The asset may be an individual property, such as the family home or it could be a company asset such as a vehicle as well as a piece of machine.
The majority of the lenders even the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, your assets could be sold by the lender. In essence it’s the process of securing new funding using the value of what you already have.
Should I require security to secure an company loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access, however we do require a personal guarantee. In the event that you fulfill your loan obligations (as stipulated in the loan contract), asset security will never be required. For loans of over $150K generally there is an individual ensure and security that is in the form a charge over assets.