FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Adelaide Small Business Loans
Tell me more about Adelaide Small Business Loans
Adelaide unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes online or over the phone. You’ll get a same day response and have the funds on your account within 24 hours. Traditional company loans have an annual rate of interest as well as other fees and charges. We offer a company loan is an upfront priced loan therefore you’ll know ahead of time the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company use, including the management of cash flow, business renovations, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
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 $700,000. It is necessary to 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 of proving at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan is a great option for almost any company need, including company renovations, to purchase new equipment or inventory or 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 necessary for funding of more than $150,000. This can be done by taking a charge against assets, and could include the registration of this on the PPSR or the registration of a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature rather than defining the security of a specific asset. The person signing the ensure is personally responsible if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR permits the priority of personal property assigned according to the date the security interest was registered.
An affidavit is an official form of document to provide the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for larger company loans that exceeds $250K we can offer a preliminary pre-approval to help make the process. We could be able to do this without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial health checks. It is not an offer or guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you are offered could be based on different conditions.
Application process
Do I qualify for funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a few minutes and an experienced company loan specialist will be in touch to guide you through the process.
To apply for up to $100,000, you’ll need identification details (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Information on the application including credit consent twelve month bank accounts, the IRD statements Last 2 years’ finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour if you make your application during standard company hours and let us utilise the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statements we can offer a decision within the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we might be capable of offer you with a conditional pre-approval in around 6 hours. Once you have 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 specifics of each application. Some offers have been approved within the space of 24 hours.
The quickest method is to make sure you apply during standard company hours. You can also allow us to use our advanced bank verification system to instantly confirm your bank details online. If you send us documents from your account statements it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer in just one hour – provided you apply within standard business time and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statements we can provide a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of offer the conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Certain offers have been approved in the space of 24 hours.
The fastest way would be to ensure you apply during standard business hours, and permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you opt to send us documents from your account statements it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of elements for determining the well-being that is your business and the amount of repayments your business will be able to support. The total amount of your loan will be contingent on the specific circumstances of your business.
When you submit an application for a set amount, we look at a range of elements to assess your well-being of the business and the level of repayments your company will be able to support. The amount you receive from your loan will depend on the specifics of your business.
Fees & repayments
What is the cost for a company loan?
If you decide to make an application for one of our business loans, we will assess the risk profile that you have for your company and provide you with a customised proposal that includes the amount of the loan, the duration and interest rates. It is a company loan is an upfront priced loan so you will know the exact amount due, which includes any charges or interest.
What determines the amount I’m charged?
Interest rates for company loans rates differ based on various factors including the amount of money borrowed, the company assets the funds will be used for and the sector the company operates in, the long the company has been operating as well as whether the company has sufficient cash flow to support the loan, and the general health or financial standing of the business.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll know precisely what you’ll be required to pay and when, starting from day one. There’s no compounding interest, and the loan comes with no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You can apply for a loan with no cost upfront or commitment to apply.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You can choose to repay all of your loan in full at any time.
If you choose to take this route, please speak to our friendly company lending professionals. We will provide you with the details of your repayment and an early payment figure. It will be calculated using the sum of the remaining principal amount and any accrued interest at the date of early payout plus 1.5 percent of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect information, use it, and exchange it, as well as protect your information, is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. 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 to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the company owner uses assets they own to obtain the funding. The asset can be an asset belonging to the personal, like the family home or it could be a company asset such as a vehicle or piece or equipment.
The majority of lenders, even the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan, then the asset might be transferred to the lender. In essence it’s means of securing new funding using the value of what you already own.
Do I require security for a company loan?
For loans up to $150,000 no asset security is required in advance to gain access to the funds, however we do require an individual guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract) the security of assets is not needed. If you take out loans in excess of $150,000 generally, you can get personal ensure and security in the form of a charge over assets.