FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Adelaide Small Business Loans
Tell me what you think of the Adelaide Small Business Loans
Adelaide unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from a traditional business loan?
It is possible to apply to your Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and the funds could be on your account within 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. We offer a company loan is an upfront priced loan which means you be aware of the total amount to be paid, including any fees, interest or charges. This is then broken down into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company use, including cash flow management, business improvements, advertising to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal reasons.
Concerning Larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A Business Loan of a larger size is a great option for almost any business use, including company renovations, purchase of inventory or new equipment or 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 for funding of more than $150,000. This is as a result of an charge over assets and can include the registration of this through the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is general in nature rather than specifying the security of a specific asset. The person who signs the ensure is personally responsible if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR allows the priority of personal property granted according to the date the security interest has been registered.
A caveat is a legal document lodged to provide notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000 we can offer an initial pre-approval that will help ease the process. We could be able to do this without a credit check, and within 6 hours of the 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 of credit or guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you might receive could be subject to different conditions.
The application process
Do I qualify for funds?
You can apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Complete the online form in just a few minutes, and a dedicated business expert in lending will be in touch to assist you.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s License) as well as an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we usually provide an answer within an hour, provided you apply in standard business time and let us utilise the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we will be able to provide an answer in just the span of one business day.
For Larger Business Loans ($100K to $500K) we could be capable of offer you with a conditional pre-approval within about six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some offers have been approved in 24 hours.
The quickest method is to ensure you apply during standard company hours, and allow us to use the advanced bank verification system to confirm your bank details online. If you decide to upload copies of your bank statements , it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we typically provide an answer in just one hour – as long as you apply at standard business timings and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements, we are able to offer an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K and up) we could be capable of provide you with a conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some deals have been approved in the space of 24 hours.
The quickest method can be make sure you apply during normal business hours. You can also allow us to use the advance bank verification to verify your bank information online. If you choose to upload documents from your account statements it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount we will consider a number of factors that determine what is the well-being of the business as well as the amount of repayments your company is able to afford. The total amount of your loan will depend on the particular circumstances the company.
When you submit an application for a specific amount we look at a range of variables to determine how much we can lend you such as well-being of the company as well as the amount of payments your business can afford. The total amount of your loan will be contingent on the particulars that are unique to your business.
Fees & repayments
What is the cost for a company loan?
When you request the business financing, we will assess the risk assessment that you have for your company and provide an individualised offer including the amount of the loan, the duration and interest rates. A company loan is an upfront-priced loan which means you know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I am charged?
Interest rates for company loans rates vary due to variables like the amount to be borrowed, what business assets the money are used to purchase as well as the field the company operates in, how long the business has been operating as well as what percentage of the company has sufficient cash flow to support the loan, and the overall well-being as well as creditworthiness business.
What are the charges?
There are no hidden costs with our business loans, and you’ll know exactly how much it is that you need to pay and when, from the first day. There’s not any compounding interest and there are no additional charges (as long as you make your payments in time).
We don’t charge an application fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan early?
You can choose to repay the entire amount of your advance loan at any time.
If you are deciding to do this please call our helpful company loans specialists. They will provide you with details on repayment as well as an early payout amount. This will be calculated as the sum of the principal balance plus any accrued interest as of the time of early payment plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To ensure that you don’t miss repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear the ways we gather data, process, exchange and protect your information, is vital and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to security for our customers and security. We employ a highly sophisticated banking verification system to instantly confirm your bank account information online so we can offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses an asset that they own to make a loan. The asset can be either an individual asset, such as the family home, or a company asset like a truck or other piece of machinery.
The majority of lenders, including the banks with the biggest size, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, your asset may be offered for sale by the lender. In essence, it is a way of securing additional financing using the value of what you already have.
What do I need security to secure a company loan?
For loans that exceed $150K, it is not necessary to secure assets in advance to gain access to the funds However, we do need an individual guarantee. If you adhere to your loan obligations (as detailed in the loan contract), asset security is not required. For loans of over $150K generally there is personal guarantee and security is provided in the form of a charge over assets.