FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Adelaide Small Business Loans
Let me know 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. They also offer cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an traditional company loan?
It is possible to apply to get your Small Business Loan in under 10 minutes over the phone, receive an immediate response, and funds may be in your account within 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. Our company loan is a cash-based loan therefore you’ll know in advance the total amount to be paid, including any fees, charges or charges. Then, it is broken down into either weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business use, including managing cash flows, business remodeling, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available for personal purposes.
About larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been trading for at least 3 years with an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large business loan can be used for almost every business need, including business improvements, purchasing inventory or new equipment for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. This is by way of charge against assets, and could be registered on the PPSR or registering a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature, rather than stating security over a particular asset. The person who signs the ensure is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR gives priority over personal property to be granted in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal document filed to provide the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for larger business loans that exceeds $250K we may be able to provide a preliminary pre-approval to help ease the process. It is possible to make this decision without a credit check and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes answering a couple of financial well-being checks. It is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you may receive may be subject to different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in just a few minutes, and an experienced business lending specialist will call you to assist you.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we typically offer a response in one hour if you submit your request at quality company timings and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statements , we’ll be able to offer the decision within 1 company day.
If you are applying for a Larger Business Loan ($100K or more) we may be in a position to offer you with conditional pre-approval in around six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be quicker based on the specifics of each application. Certain offers have been approved within the space of 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours. You can also allow us to use our advance bank verification link to instantly verify your bank account information online. If you choose to send us 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 can usually offer an answer within an hour, provided you make your application in normal business timings and let us use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statement, we’ll offer a decision within one business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be likely to provide you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending upon the circumstances for each application. Some deals have been approved within 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours, and let us use the advanced bank verification system to verify your bank information online. If you opt to upload documents from your account statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount we take into consideration a range of elements in order to assess the well-being for your business and the level of the repayments your company can afford. The total amount of your loan will depend on the particular circumstances the company.
If you apply for a particular amount, we will consider a number of aspects to assess your well-being of your company and the level of repayments that your business will be able to support. The amount you receive from your loan will be contingent on the particular circumstances for your company.
Fees & repayments
How do you charge for a business loan?
If you decide to make an application for the business credit, we will assess the risk profile of your company and offer you with a tailored offer that includes the amount of loan, the term and interest rates. The company loan is an upfront cost loan and you’ll know in advance the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I am charged?
Business loan interest rates differ based on various factors like the amount of money of money borrowed, the company assets the funds are used to purchase in addition to the industry that the company is operating in, how long the business is in operation and how long the company has sufficient cash flow to fund the loan, and overall health and creditworthiness of the company.
What are the fees?
There are no hidden fees for our business loans. You’ll know precisely how much you’ll need to pay and when, from day one. There’s no compounding interest, and no extra fees (as long as you are able to make your payments in time).
We do not charge an application fee. You can apply for a loan with without any upfront costs or any obligation to sign up.
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% of the amount of the loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of your loan early at any time.
If you are deciding to do this please contact our helpful business loans experts. We will provide you with repayment details and an early payment figure. This will be calculated as the sum of the principal amount remaining and any accrued interest at the date of early payout plus 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear how we collect the information we collect, use, share and ensure the security of your information is vital and is an essential part of our relationship with 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 certified for our commitment to protecting the security of customers and security. We employ a highly sophisticated bank verification system to instantly confirm your bank account information online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner makes use of the assets they have to secure the loan. The asset can be an individual property, such as the family home or a company asset such as a truck or piece of equipment.
The vast majority of lenders, even the big banks, tend to make loans secured by assets. If you are having difficulty paying back the loan then the asset might be sold by the lender. In essence, it is means of securing new financing using the worth of the asset you already own.
Do I need security to secure a business loan?
Up to $150K in loans no asset security is required before you can access the money However, we require a personal guarantee. require a personal guarantee. If you adhere to your loan commitments (as detailed in the loan contract) Asset security will never be needed. For loans over $150K generally, you are able to get the option of a personal guarantee and security is provided in the form of charges on assets.