FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More 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. The terms range between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
It is imaginable to apply to get this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and the funds could be in your account within 24 hours. Traditional business loans are based on an annual rate of interest plus other fees and charges. This company loan is a pre-paid loan therefore you’ll be aware of the total amount to be paid, including the interest, fees and charges. This is then broken down into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business reason, such as cash flow management, company renovations, marketing, to purchase inventory or new equipment, 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 range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the business needs to be operating for at least three years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Larger Business Loan is a great option for almost every business need, including business renovations, to purchase equipment or inventory, as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It is usually by taking a charge on assets and can include the registration of this with the PPSR or filing a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally based rather than stipulating security over a particular asset. The person signing the ensure is personally liable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is 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 gives the priority of personal property granted according to the date the security interest has been registered.
Caveats are legal document that is filed to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger business loans that exceeds $250K 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 six hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial well-being questions. It is not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer that you might receive could be based on different terms.
The application process
Do I have the right to receive funds?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a few minutes and a dedicated business loan specialist will be in touch to guide you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License), a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent and 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we can often offer an answer in just one hour if you apply during standard business times and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we are able to provide a decision within 1 business day.
For the Larger Business Loan ($100K to $500K) we could be in a position to provide you with conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some deals have been approved in just 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours. You can also allow us to use the advanced bank verification system link to confirm your bank details online. If you upload documents from your account accounts, it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within one hour – provided you submit your request in standard business times and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements we can offer a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be able to offer you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Certain deals have been approved in 24 hours.
The fastest way would be to ensure you apply during normal business hours. Also, allow us to use our advanced bank verification system to instantly verify your bank account information online. If you send us duplicates of your banking statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of aspects to determine what is the well-being of your business as well as the amount of repayments your business is able to afford. The amount you receive from your loan will depend on the particular circumstances of your business.
When you submit an application for a set amount, we consider a variety of factors to assess how much we can lend you such as health that is your business and the amount of the repayments your company can afford. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to make an application for the company credit, we will assess the risk profile the company and offer you with a tailored offer including the loan amount, the terms and the interest rates. This company loan is an upfront-priced loan therefore you will know in advance the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I pay?
Interest rates for business loans rates depend on several factors such as the amount that is that is borrowed, what business assets the money will be used for as well as the field the business is operating in, how long the business has been in operation as well as how long the company has enough cash flow to support the loan, as well as the overall well-being and 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 be required to pay and when, starting from day one. There’s no compounding interest, and no extra fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You are able to apply for a loan with without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan earlier?
You can decide to repay the total amount of your loan at any point in time.
If you do decide to take this route, please call our helpful company lending specialists. They’ll provide you with details on repayment along with an early payout estimate. It will be calculated using the sum of the principal balance and the accrued interest up to the time of the early payout, plus 1.5 percent of the principal remaining and any outstanding fees.
How do you make repayments work?
To ensure you do not miss payment dates and to align your cash flow schedule, we offer repayments either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be protected?
Protecting your information, and being clear about the ways we gather the information we collect, use, share and protect your information, is crucial and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We use an advanced banking verification system to immediately verify your bank account details online, allowing us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner utilises an asset they own to get the funds for a loan. The asset may be an individual asset, such as the family home or an company asset like a truck or other piece of machinery.
The vast majority of lending institutions, not just the largest banks, are inclined to secure loans against an asset. If you’re struggling to pay back the loan, then the asset might be sold by the lender. In essence, it’s means of securing new funding taking advantage of the value of what you already own.
What do I need security to secure a company loan?
For loans of up to $150K, there is no requirement for asset security upfront to access the money, however we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan commitments (as specified in your loan contract document), asset security will never be required. For loans that exceed $150K, generally, you are able to get personal guarantee and security in the form of a charge over assets.