FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Adelaide Small Business Loans
Tell me about the Adelaide Small Business Loans
Adelaide unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from the traditional business loan?
You can apply to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and funds may be in your account within 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. Our company loan is a pre-paid loan which means you know ahead of time the total amount payable including any interest, fees or charges. This is then broken down into a daily or weekly installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business reason, such as control of cash flow company renovations, marketing to purchase inventory, new equipment, for 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 size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the company needs to have been operating for at least three years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funding be used for?
A Business Loan of a larger size can be used for almost all company need, including business renovations, to purchase inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It is usually by taking a charge against assets and can include registering this on the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is general in nature rather than stating the security of a specific asset. The person signing the ensure is personally accountable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR gives the priority of personal property assigned according to the date a security interest has been registered.
Caveats are legal document lodged to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans that is greater than $250K, we may offer a preliminary pre-approval to help simplify the process. We may be able to do this without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial well-being checks. It’s not an offer or guarantee of financing. Acceptance without condition is subject to a full credit assessment and any offer that you may receive may be subject to different conditions.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application in just a few minutes, and an experienced business credit specialist will be in touch to guide you through the process.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, 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 month bank accounts, the IRD statements and the last two years’ finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we can often provide an answer within one hour – as long as you make your application during quality company timings and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statement, we’ll provide a decision in just the span of one business day.
For the Larger Business Loan ($100K or more) we could be able to offer the conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some transactions have received approval within less than 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours and let us use the modern bank verification link to instantly confirm your bank details online. If you send us copies of your bank statements , it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour – as long as you apply within standard business times and let us make use of the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements we can offer an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be capable of provide you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The fastest way can be ensure you apply during normal business hours, and allow us to use our advanced bank verification system link to confirm your bank details online. If you opt to send us documents from your account statements it takes a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of aspects that determine your health that is your company and the extent of payments your company is able to afford. The total amount of your loan will depend on the particular circumstances of your company.
When you make an application for a specific amount we will consider a number of variables to determine your well-being for your company and the amount of repayments that your company will be able to support. The amount you receive from your loan will be determined by the specifics for your company.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to request our business loans, we will assess the risk profile for your business and offer you with a customised offer, including the amount of loan, the term and interest rates. A company loan is a loan that is priced upfront so you will know in advance the total amount due, which includes any charges or interest.
What determines the rate that I’m charged?
Business loan interest rates differ based on various factors such as the amount that is borrowed, what company assets the funds will be used for, the industry the company is in, how long the company has been in operation and what percentage of the business has enough cash flow to cover the loan, and also the general health and creditworthiness of the business.
What are the charges?
There are no hidden costs with our company loans. You’ll be aware of the amount you’ll be required to pay, and when, starting from the very first day. There’s no compounding interest and no extra fees (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to get a cash loan without any upfront costs or obligation to proceed.
The Origination Fee covers the costs associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan in advance?
You may choose to pay back all of your advance loan at any time.
If you are deciding to take this route, please contact our helpful company loan professionals. They’ll provide you with repayment details as well as an early payout amount. This is calculated as the sum of the principal remaining and accrued interest to the time of the early payout and 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in with your cash flow standard, we offer repayments that are either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing the ways we gather data, process, exchange and secure your information, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We use an advanced banking verification system to instantly verify your bank account details online to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the business owner makes use of assets they own to obtain the loan. The asset could be an individual asset, such as the family home, or a business asset such as a truck or piece or equipment.
The majority of lending institutions, including the major banks, prefer to make loans secured by an asset. If you have trouble paying back the loan, the asset could be sold by the lender. In essence it is an opportunity to secure new financing by making use of the value of what you already have.
Do I need security to get a company loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access, however we do require an individual guarantee. So long as you comply with the loan terms (as detailed in your loan contract), asset security will never be needed. For loans of over $150K generally, there is personal ensure and security in the form charges on assets.