FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Perth Small Business Loans
Tell me how you can avail the Perth Small Business Loans
Perth unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from a traditional company loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and funds may be in your account in 24 hours. Traditional business loans have an annual rate of interest together with additional fees and charges. This business loan is a loan that is priced upfront therefore you’ll be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into weekly or daily 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 the management of cash flow, business renovations, marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
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 company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount the business needs to be in operation for at least 3 years and generate an annual revenue of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A large business loan can be used for nearly every company reason, such as business renovations, purchase of new equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This is by taking a charge over assets, and could be registered through the PPSR or filing a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is generally based rather than defining the security for a particular asset. The person who signs the guarantee is personally liable in the event that the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR permits priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal document lodged to provide the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more it is possible to offer an initial pre-approval that will help ease the process. It is possible 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 you answering some financial health questions. It’s not an offer or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you might receive could be subject to different terms.
Application process
Are I eligible for funding?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying 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 through the process.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Application details including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we usually provide an answer in just one hour if you apply during standard company time and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements , we will be able to offer a decision within just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to provide the conditional pre-approval within six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved in the space of 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours, and allow us to use the advance bank verification to verify your bank account information online. If you upload the copies of bank statements it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we typically offer an answer within an hour – provided you apply within normal business hours and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statement, we’ll provide a decision in as little as the span of one business day.
For the Larger Business Loans ($100K and up) We may be in a position to offer you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some offers have been approved within the space of 24 hours.
The fastest method can be make sure you apply during normal business hours, and allow us to use the sophisticated bank verification to verify your bank information online. If you opt to upload the copies of bank statements it can take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we consider a variety of aspects in order to assess your health that is your company and the level of the repayments your business will be able to support. The amount you receive from your loan will depend on the specifics that are unique to your company.
When you make an application for a specific amount we take into consideration a variety of elements to assess how much we can lend you such as health for your business and the amount of the repayments your company is able to afford. The amount you receive from your loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
What is the cost for the cost of a business loan?
When you apply for business loans with us business loans, we will assess the risk assessment for your business and provide an individualised offer that includes the amount of loan, the term and the interest rates. The business loan is an upfront cost loan which means you know the exact amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I pay?
Interest rates for business loans rates depend on a variety of factors like the amount of money borrowed, the company assets the funds will be used for, the industry the company is operating in, how long the business has been running, how long the business has enough cash flow to cover the loan, and general well-being and creditworthiness of the company.
What are the cost?
There are no hidden fees for our company loans, and you’ll know exactly how much you need to pay and when, starting from the day you sign up. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to make an application for loans with without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You can decide to repay all of your loan early at any time.
If you decide to pursue this option, please talk to one of our helpful company lending professionals. They will provide you with details on repayment and an early payout figure. The figure will be calculated as the total of the principal amount remaining and any accrued interest at the time of the early payout in addition to 1.5 percent of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss due dates and also to be in line your cash flow cycle we offer repayments that are either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and being clear about the ways we gather the information we collect, use, share and secure your information, is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We make use of an advanced banking verification system to immediately confirm your bank account information online, allowing us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner makes use of an asset that they own to obtain the loan. The asset could be an individual asset, such as the family home or a company asset such as a vehicle or piece or equipment.
The majority of the lenders including the largest banks, are inclined to secure loans against assets. If you are having difficulty paying back the loan, then the asset could be taken over by the lender. In essence it’s a way of securing new financing by using the value of what you already have.
Are I require security to secure an company loan?
For loans that exceed $150K, there is no requirement for asset security in advance to gain access to the funds, however we do require a personal guarantee. So long as you comply with your loan commitments (as stated in your loan contract) the security of assets will never be needed. If you take out loans in excess of $150,000 generally, there is an individual guarantee and security that is in the form charges on assets.