FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Adelaide Small Business Loans
Let me know what you think of the Adelaide Small Business Loans
Adelaide unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from the traditional business loan?
You can apply for your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and have the funds available in just 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. This company loan is a cash-based loan which means you know in advance the total amount payable including any fees, interest or charges. This is then broken down into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business need, such as control of cash flow business remodeling, marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available for personal use.
About larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to have been trading for at least 3 years and generate an annual revenue of $700,000. You must 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 demonstrate at minimum 12 months of business.
How can the funds be utilised?
A Larger Business Loan can be used for nearly every business purpose including business renovations, purchase of inventory or new equipment for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. This is by way of charge on assets, and could be registered through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is general in nature rather than stipulating security over an asset. The person who is signing the ensure is personally liable in the event that the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR permits priority over personal property to be assigned in accordance with the date on which a registration of a security interest.
Caveats are legal form of document to offer notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250K it is possible to offer an initial pre-approval in order to simplify the process. We might be able to apply for this without credit checks 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’s in no way an offer, nor is it a guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you receive could be on different conditions.
The application process
Can I be eligible for funding?
You may apply for an 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 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 process for applying is fast and easy. Simply complete the online form in just a few minutes, and an experienced company credit specialist will be in touch to guide you.
To apply for up $100,000, you’ll need identification details (valid Driver’s License), an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K to $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, 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer in just one hour, provided you apply at quality company hours and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements we can offer the decision within an business day.
For the Larger Business Loan ($100K or more) we could be in a position to offer you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Certain transactions have received approval in 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, allow us to use our modern bank verification link to verify your bank account information online. If you upload copies of your bank statements , it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we typically offer a response in one hour if you apply during standard business times and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statement, we’ll provide a decision in as little as an business day.
For Larger Business Loans ($100K and up) we could be in a position to offer you with conditional pre-approval within 6 hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Some transactions have received approval within the space of 24 hours.
The fastest way is to ensure you apply during standard business hours, and allow us to use our sophisticated bank verification to instantly check your bank’s information online. If you decide to send us copies of your bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a particular amount, we take into consideration a range of variables to determine the well-being of your business and the amount of payments your business will be able to support. The total amount of your loan will be contingent on the specifics for your business.
When you submit an application for a specific amount we will consider a number of aspects to determine how much we can lend you such as health that is your company as well as the amount of repayments that your company will be able to support. The amount you receive from your loan will be determined by the specifics the company.
Fees & repayments
How much should you charge for an company loan?
When you make an application for our business loan, we will assess the risk profile the company and provide an individualised offer including the amount of the loan, the duration and interest rates. It is a company loan is a loan that is priced upfront and you’ll know in advance the total amount you will have to pay, including charges, interest rates or fees.
What is the factor that determines the price I will be charged?
The interest rates on company loans rates depend on a variety of variables like the amount to be borrowed, what business assets the funds will be used for in addition to the industry that the business operates in, how long the business is in operation for, whether the company has sufficient cash flow to support the loan, and also the overall health or financial standing of the company.
What are the costs?
There aren’t any hidden costs with our company loans, and you’ll be aware of the amount you be required to pay, and when, right from the first day. There’s no compounding and there are no additional charges (as long as you make your payments in time).
We do not charge an Application Fee. You are able to get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can decide to repay all of your loan early at any time.
If you decide to take this route, please talk to one of our helpful company loans professionals. We will offer you with details on repayment and an early payout figure. It will be calculated using the total of the principal balance and any accrued interest at the time of early payment and 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To make sure you do not miss payments and to work your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as making it clear how we collect the information we collect, use, share and ensure the security of your information is crucial and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We utilise a sophisticated bank verification system to instantly confirm your bank account information online, allowing us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an company owner uses an asset that they own to obtain the loan. The asset may be an individual asset, such as the family home, or a business asset like a truck or piece of equipment.
The vast majority of lending institutions, including the banks with the biggest size, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, then the asset might be sold by the lender. In essence it is a way of securing new financing by using the value of what you already own.
Do I need security to secure a company loan?
For loans up to $150K there is no requirement for asset security upfront to access the money However, we do require the personal guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150,000, typically, you will need the option of a personal guarantee and security that is in the form an asset charge.