FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Adelaide Small Business Loans
Let me know about the Adelaide Small Business Loans
Adelaide unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from a traditional business loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and the funds could be available in just 24 hours. Traditional company loans are based on 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 of the total amount due, which includes the interest, fees and charges. Then, it is divided into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business need, such as cash flow management, business remodels and marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
About larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to be in operation for at least 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be used for?
A Business Loan of a larger size can be used for almost any company need, including business renovations, purchase of equipment or inventory or as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This is in the form of a charge against assets, and could include registration in the PPSR or making 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 who signs the guarantee is personally liable if the business 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 granted to individuals who own personal property (including objects or assets). The PPSR grants the priority of personal property assigned according to the date the registration of a security interest.
Caveats are legal document filed to offer an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000, we may offer an initial pre-approval to make the process. We may be able to make this decision without a credit check and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial well-being questions. It is in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you may receive may be subject to different conditions.
Application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in just a few minutes, and a dedicated company loan specialist will contact you to guide you through the process.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s License), an NZBN/IRD that is valid and at least six months of bank statements.
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 loan above $150K).
$250K-$500K: Details for application including credit consent and 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer in just one hour, provided you submit your request at standard business hours and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll offer an answer within one business day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with pre-approval conditional to your application within about six hours. After you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be quicker based on the particular circumstances of each application. Some agreements have been approved in the space of 24 hours.
The most effective method is to ensure you apply during normal company hours. You can also allow us to use the advanced bank verification system to check your bank’s information online. If you opt to send us copies of your bank statements it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer in just one hour if you apply within standard business timings and permit us to use the bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statements we can provide a decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to provide you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some transactions have received approval within the space of 24 hours.
The fastest method would be to make sure you apply during normal business hours. Also, let us use the sophisticated bank verification to confirm your bank details online. If you choose to upload copies of your bank statements it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount we take into consideration a range of factors to determine your well-being for your company as well as the amount of repayments your company will be able to support. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
If you apply for a particular amount, we consider a variety of variables to determine how much we can lend you such as health of the company and the amount of payments your business can afford. The amount you receive from your loan will be contingent on the specifics of your business.
Fees & repayments
How much should you charge for a business loan?
When you make an application for business loans with us company loan, we will assess the risk profile of your company and provide an individualised offer, including loan amount, term and interest rates. A business loan is an upfront cost loan so you will be aware of the total amount payable including any costs, fees, or interest rates.
What determines the rate that I’m charged?
The interest rates on business loans rates vary due to factors like the amount of money borrowed, the company assets the funds are used to purchase and the sector the business operates in, the long the company is in operation and what percentage of the company has enough cash flow to pay for the loan, and the overall health or creditworthiness of the company.
What are the charges?
There are no hidden fees with our business loans. You’ll know precisely how much you’ll need to pay, and at what time, from the first day. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments in time).
We do not charge an application fee. You are able to request a credit loan without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved in establishing and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan in advance?
You can decide to repay the total amount of your loan in full at any time.
If you are deciding to pursue this option, please call our helpful company loan professionals. They’ll provide you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal amount remaining and any accrued interest at the time of early payment, plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about the ways we gather the information we collect, use, share and secure your information, is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to security for our customers and security. We employ a highly sophisticated banking verification system to instantly verify the bank account details online to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner utilises an asset they own to get the funds for a loan. The asset can be an individual asset, such as the family home, or it could be a company asset like a truck as well as a piece of machine.
The vast majority of banks, including the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, then your asset may be taken over by the lender. In essence it is a way of securing additional financing taking advantage of the value of what you already own.
Should I need security to get an company loan?
Up to $150,000 in loans there is no requirement for asset security in advance to gain access to the funds but we require a personal guarantee. require the personal guarantee. As long as you follow your loan commitments (as stated in the loan contract), asset security will never be needed. For loans that exceed $150K, generally, you can get personal guarantee and security that is in the form a charge over assets.