FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Adelaide Small Business Loans
Tell me what you think of the Adelaide Small Business Loans
Adelaide unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an traditional business loan?
Apply to the Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and the funds could be in your account within 24 hours. Traditional company loans refer to an interest rate per annum along with other charges and fees. The company loan is a loan that is priced upfront which means you know ahead of time the amount you will have to pay, including the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company need, such as cash flow management, company remodels and marketing, to purchase inventory or new equipment, to fund 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 of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be trading for at least 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used for nearly any business use, including business renovations, purchase of equipment or inventory for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This is by way of charge on assets, and could include registration with the PPSR or making a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is general in nature rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally liable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including items or assets). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal form of document to provide the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000 we can offer a preliminary pre-approval to help make the process. It is possible to get this done without a credit check and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health questions. It’s neither an offer nor a guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could be on different terms.
The application process
Can I be eligible for funding?
You are eligible to apply for an business 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 trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in few minutes and a dedicated business loan specialist will call you to help you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statement 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.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within an hour if you make your application within quality business time and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements we can provide the decision in just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we could be able to offer you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the particular circumstances of each application. Some offers have been approved within just 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal company hours and allow us to use our advance bank verification to instantly confirm your bank details online. If you choose to upload the copies of bank statement, it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within one hour if you submit your request within normal business timings and you allow us to use the bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we’ll be able to provide an answer within the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to offer you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Some transactions have received approval in 24 hours.
The fastest way would be to make sure you apply during standard business hours and allow us to use the advanced bank verification system link to check your bank’s information online. If you decide to send us documents from your account statement, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a certain amount, we take into consideration a range of factors for determining what is the health for your company and the extent of the repayments your business is able to afford. The amount you receive from your loan will be contingent on the specifics of your company.
When you make an application for a specific amount we will consider a number of elements to assess the well-being for your company and the extent of repayments your company can afford. The amount you receive from your loan will be determined by the specifics for your business.
Fees & repayments
How much do you charge for an company loan?
When you apply for business loans with us business loans, we will assess the risk profile the business and offer an individualised offer that includes loan amount, term and the interest rates. This company loan is an upfront cost loan which means you know in advance the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I pay?
Business loan interest rates differ based on various factors such as the amount that is of money borrowed, the company assets the money are used to purchase, the industry the business is operating in, how long the business is in operation as well as what percentage of the business has enough cash flow to support the loan, and the overall well-being or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our company loans, and you’ll know exactly how much it is that you be required to pay, and when, starting from the day you sign up. There’s no compounding interest, and no additional fees (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 no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can repay the entire amount of the loan early at any time.
If you do decide to do this please talk to one of our helpful business credit experts. The specialists will offer you with repayment details and an early payout figure. The figure will be calculated as the total of the principal amount remaining and any accrued interest at the time of the early payout, plus 1.5 percent of the remaining principal plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payment dates and to align with your cash flow standard, we offer repayments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about the ways we gather data, process, exchange and secure your information, is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We use an advanced bank verification system link to instantly verify your bank account details online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a business owner makes use of an asset that they own to get the funds for a loan. The asset can be a personal asset like the family home, or it could be a company asset such as a vehicle or other piece of machinery.
The majority of lenders, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan, your asset may be offered for sale by the lender. In essence it’s means of securing new funding taking advantage of the value of what you already have.
Are I need security for a business loan?
Up to $150K in loans it is not necessary to secure assets upfront to access the money but we do require a personal guarantee. In the event that you fulfill the terms of your loan (as detailed in your loan contract document) the security of assets will never be needed. For loans over $150K generally, you can get personal guarantee and security in the form a charge over assets.