FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Adelaide Small Business Loans
Let me know about the Adelaide Small Business Loans
Adelaide unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from the traditional company loan?
Apply for the Small Business Loan in under 10 minutes over the phone, receive an immediate response, and the funds could be in your account within 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. This business loan is a loan that is priced upfront therefore you’ll be aware of the total amount to be paid, including any interest, fees or charges. This is then divided into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business reason, such as the management of cash flow, company renovations, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used to fund personal expenses.
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 for up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to have been trading for at least 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funds be utilised?
A large company loan can be used for almost any company reason, such as business remodeling, buying inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This is by way of charge over assets and can include the registration of this with the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay a loan which is general in nature rather than defining the security for a particular asset. The person who signs the guarantee is personally liable in the event that the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document lodged to offer notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan of $250K or more we can offer an initial pre-approval in order to ease the process. We may be able to get this done without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health checks. It is not an offer or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer that you receive could have different terms.
Application process
Do I qualify for funds?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in just a few minutes, and a dedicated company lending specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s License), an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent twelve months bank statement, an IRD statements and the last two years’ finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) We can usually provide a response in one hour, provided you make your application at quality company times and you allow us to utilise the bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements we can offer the decision in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be quicker based on the specifics of each application. Certain transactions have received approval within 24 hours.
The most effective method for you to apply is ensure you apply during normal company hours and permit us to use the advance bank verification to instantly verify your bank information online. If you choose to upload copies of your bank statements it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour – provided you make your application in standard business timings and permit us to use the bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements, we will be able to provide an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be capable of offer you with a conditional pre-approval within about six hours. Once you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved in 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours and allow us to use the advanced bank verification system to verify your bank information online. If you decide to upload the copies of bank statement, it will take a little 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 specific amount we take into consideration a range of elements to determine the health of your business and the level of repayments that your business will be able to support. The total amount of your loan will depend on the specifics the business.
If you apply for a certain amount, we look at a range of factors to determine your well-being that is your company and the level of repayments your business can afford. The amount you receive from the loan will be determined by the particular circumstances for your company.
Fees & repayments
What is the cost for an company loan?
If you decide to request business loans with us company credit, we’ll assess the risk assessment that you have for your company and provide you with a tailored offer that includes the amount of the loan, the duration and interest rates. It is a company loan is an upfront-priced loan therefore you will be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I pay?
The interest rates on company loans rates depend on several factors such as the amount that is borrowed, what company assets the money will be used for as well as the field the business operates in, how long the company has been running and in the event that the business has enough cash flow to fund the loan, and overall health or creditworthiness of the business.
What are the cost?
There aren’t any hidden charges with our company loans. You’ll know exactly how much you’ll be required to pay and when, from the very first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You can make an application for loans with without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back the total amount of your advance loan at any time.
If you choose to take this route, please talk to one of our helpful business loans experts. They will provide you with details on repayment as well as an early payout amount. This is calculated as the total of the principal balance and accrued interest to the time of the early payout in addition to 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work your cash flow schedule, we offer repayments either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my data be protected?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as secure your information, is of paramount importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We make use of an advanced bank verification system to immediately confirm your bank account information online to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner uses the assets they have to make the funds for a loan. The asset can be an individual property, such as the family home or it could be a company asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, including the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan then your assets could be taken over by the lender. In essence it is an opportunity to secure additional financing taking advantage of the value of what you already have.
What do I require security to secure an company loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds however, we do need the personal guarantee. As long as you follow the loan terms (as specified in your loan contract document) the security of assets is not required. For loans over $150K typically, you will need personal ensure and security is provided in the form of an asset charge.