FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Adelaide Small Business Loans
Tell me what you think of the Adelaide Small Business Loans
Adelaide unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
Apply to get your Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and the money could be on your account within 24 hours. Traditional business loans refer to an annual rate of interest together with additional fees and charges. We offer a business loan is a pre-paid loan therefore you’ll know ahead of time the total amount to be paid, including any fees, interest or charges. Then, it is broken down into either weekly or daily payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business use, including control of cash flow company improvements, advertising to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
About the Larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are 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% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to be trading for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost every business purpose including company remodeling, buying inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This can be done as a result of an charge against assets, and could include the registration of this on the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is general in nature rather than stipulating the security of a specific asset. The person who signs the guarantee is personally liable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR allows prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
A caveat is a legal document filed to offer an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger business loans of $250K or more, we may offer an initial pre-approval to simplify the process. We could be able to do this without credit checks and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial health questions. This is not an offer or guarantee of funds. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you are offered could be based on different terms.
The application process
Do I have the right to receive funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in few minutes and a dedicated business loan specialist will call you to guide you.
To apply for up $100,000 you’ll require ID details (valid Driver’s License) and an active NZBN/IRD, and at least six months worth of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within an hour, provided you make your application during quality company times and you allow us to utilise the bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements we can offer the decision within an business day.
For the Larger Business Loan ($100K and up) we might be likely to offer you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved within 24 hours.
The most efficient method would be to make sure you apply during standard company hours and allow us to use the advance bank verification link to check your bank’s information online. If you choose to send us the copies of bank statements , it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) We can usually offer an answer within an hour, provided you apply during standard business time and allow us to use the bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements, we will be able to provide a decision within 1 business day.
For Larger Business Loans ($100K up to $500,000) we may be able to offer you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain deals have been approved within just 24 hours.
The quickest method is to ensure you apply during normal business hours, and allow us to use the modern bank verification to instantly confirm your bank details online. If you opt to upload the copies of bank accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a certain amount, we will consider a number of elements that determine what is the health of the company and the amount of payments your company will be able to support. The total amount of your loan will be contingent on the specific circumstances that are unique to your company.
If you apply for a specific amount we will consider a number of variables to determine how much we can lend you such as well-being that is your business and the amount of payments your company will be able to support. The amount you receive from your loan will be determined by the particulars the company.
Fees & repayments
How much do you charge for an company loan?
When you make an application for the company credit, we’ll assess the risk profile for your company and offer you with a customised proposal that includes the amount of the loan, the duration and the interest rates. It is a business loan is a loan that is priced upfront and you’ll know the exact amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I pay?
Interest rates for company loans rates depend on several variables like the amount to be borrowed, what business assets the money will be used for in addition to the industry that the business is operating in, how long the business has been operating, whether the business has sufficient cash flow to support the loan, and general health and creditworthiness of the business.
What are the costs?
There are no hidden costs for our company loans. You’ll know exactly how much you be required to pay and when, from day one. There’s no compounding and there are no additional charges (as as long as you pay your payments on time).
We do not charge an application fee. You can make an application for loans with with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Do I have the option of paying off the loan early?
You can repay the entire amount of your loan at any point in time.
If you decide to pursue this option, please call our helpful company loans specialists. They will provide you with the details of your repayment and an early payment figure. It will be calculated using the total of the principal balance and the accrued interest up to the time of early payout, plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
To ensure you do not miss repayments and to fit in your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and security. We employ a highly sophisticated bank verification system link to instantly verify your bank account information online, allowing us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner utilises an asset they own to get the funding. The asset can be either a personal asset like the family home or an company asset such as a truck as well as a piece of machine.
The majority of the lenders including the banks with the biggest size, prefer to secure loans against assets. If you’re having trouble paying back the loan, the asset could be sold by the lender. In essence it’s a way of securing new funding making use of the value of what you already have.
Do I need security for an business 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. So long as you comply with your loan commitments (as detailed in the loan contract) Asset security is not required. For loans of over $150,000 generally, there is an individual ensure and security is provided in the form of charges on assets.