FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Adelaide Small Business Loans
Let me know more about Adelaide Small Business Loans
Adelaide unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from a traditional company loan?
It is possible to apply for your Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and have the funds in your account within 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. This business loan is a pre-paid loan which means you know in advance the total amount due, which includes any interest, fees or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business purpose including cash flow management, business remodels and marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available for personal use.
About 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 growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for a minimum of 3 years with an annual turnover of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A larger business loan is a great option for almost every business use, including business remodeling, buying inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It’s by way of charge against assets, which could also include registering this in the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature rather than defining security over a particular asset. The person who is signing the guarantee is personally liable in the event that the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
An affidavit is an official document that is filed to offer the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting larger business loans of $250,000 or more we may be able to provide a preliminary pre-approval to help smooth out the process. We may be able to do this without a credit check and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial well-being checks. It is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be subject to different terms.
Application process
Do I qualify for funds?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and an experienced business loan specialist will call you to assist you.
To be eligible for up to $100,000 you’ll require the right identification documents (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) We can usually provide an answer within an hour if you apply at quality business times and allow us to utilise the bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statement, we’ll provide an answer within just one business day.
For the Larger Business Loan ($100K and up) we may be capable of provide you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The quickest method for you to apply is ensure you apply during normal company hours, and allow us to use the advance bank verification to instantly check your bank’s information online. If you choose to upload duplicates of your banking statements it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within an hour, provided you make your application in standard business timings and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statement, we’ll provide an answer in as little as 1 business day.
For Larger Business Loans ($100K and up) we might be in a position to provide the conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain deals have been approved within just 24 hours.
The fastest way can be make sure you apply during normal business hours and allow us to use the modern bank verification to instantly verify your bank information online. If you choose to upload duplicates of your banking statements it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of elements in order to assess how much we can lend you health that is your business and the level of payments your company can support. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
If you apply for a set amount, we will consider a number of factors to assess how much we can lend you such as health for your business as well as the amount of payments your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances of your business.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to apply for one of our company loans, we will assess the risk profile that you have for your company and provide you with a customised offer that includes loan amount, term and the interest rates. It is a business loan is an upfront cost loan therefore you will be aware in advance of the total amount payable including any charges, interest rates or fees.
What is the factor that determines the price I will be charged?
The interest rates on company loans rates depend on several factors like the amount of money of money borrowed, the company assets the money will be used for, the industry the company operates in, how long the company has been operating as well as what percentage of the company has enough cash flow to cover the loan, and the general well-being or financial standing of the company.
What are the fees?
There aren’t any hidden charges for our company loans, and you’ll know precisely what you’ll need to pay and when, from the very first day. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments in time).
We do not charge an application fee. You are able to get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan early?
You can repay all of your advance loan at any time.
If you choose to pursue this option, please talk to one of our helpful company lending experts. They’ll offer you with repayment details along with an early payout estimate. This will be calculated as the sum of the remaining principal amount plus any accrued interest as of the time of the early payout in addition to 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
To help you avoid missing due dates and also to be in line with your cash flow standard, we offer repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect, use, exchange and secure your information, is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We make use of an advanced bank verification system that allows you to immediately confirm your bank account information online. This allows us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner makes use of the assets they have to secure the funds for a loan. The asset could be an individual asset, such as the family home, or a company property like a truck or other piece of machinery.
The vast majority of the lenders including the largest banks, are inclined to secure loans against an asset. If you’re struggling to pay back the loan then your assets could be transferred to the lender. In essence, it’s an opportunity to secure new funding making use of the value of what you already have.
What do I require security for an company loan?
For loans that exceed $150,000, no asset security is required in advance to gain access to the funds however, we do need the personal guarantee. If you adhere to the loan terms (as specified in the loan contract) the security of assets is not needed. If you take out loans in excess of $150K generally, you are able to get an individual ensure and security in the form charges on assets.