FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Bedford Park Small Business Loans
Tell me how you can avail the Bedford Park Small Business Loans
Bedford Park unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes online or over the phone, receive a same day response and the money could be available in just 24 hours. Traditional business loans are based on an annual interest rate together with additional fees and charges. This company loan is a cash-based loan and you’ll be aware of the total amount payable including any fees, charges or charges. Then, it is broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company need, such as the management of cash flow, business remodels and marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
About the Larger Bedford Park Business Loans
What is the Larger Bedford Park Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
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, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan is a great option for almost every company purpose including company remodeling, buying equipment or inventory for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This can be done by taking a charge on assets, which could also include the registration of this with the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is generally based rather than stipulating the security for a particular asset. The person who is signing the ensure is personally liable if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be granted in accordance with the date on which a security interest has been registered.
A caveat is a legal document that is filed to offer notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of more than $250K, we may offer an initial pre-approval in order to smooth out the process. We could be able to get this done without a credit check and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial health checks. This is neither an offer nor a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you might receive could be on different terms.
The application process
Do I have the right to receive funds?
You may be eligible for a 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 prove at least 6 months of business (for you to qualify for 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 easy. Complete the online form in just a few minutes, and an experienced business loan specialist will be in touch to assist you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent and 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you submit your request at standard company timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements , we are able to provide an answer within the span of one business day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved in 24 hours.
The quickest method can be make sure you apply during normal company hours and allow us to use our advanced bank verification system link to check your bank’s information online. If you choose to send us duplicates of your banking accounts, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer a response in one hour, provided you submit your request in normal business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements we can offer an answer in as little as the span of one business day.
For Larger Business Loans ($100K and up) we could be in a position to offer the conditional pre-approval in around six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The quickest method can be ensure you apply during normal business hours and allow us to use our modern bank verification to check your bank’s information online. If you choose to upload documents from your account accounts, it will take a little 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 will consider a number of factors to determine your health that is your company and the amount of payments your company can afford. The amount you receive from the loan will be determined by the specific circumstances the company.
If you apply for a specific amount we will consider a number of factors to assess the well-being of the company and the level of repayments your business will be able to support. The amount you receive from the loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to request our company loans, we’ll assess the risk assessment that you have for your business and provide you with a tailored offer, including the loan amount, the terms and interest rates. It is a business loan is an upfront priced loan so you will know the exact amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I am charged?
Business loan interest rates differ based on various variables like the amount to be of money borrowed, the business assets the money will be used for, the industry the business is in, how long the business has been operating and in the event that the company has sufficient cash flow to fund the loan, and also the general well-being or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll be aware of the amount you be required 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 make an application for loans with without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Do I have the option of paying off the loan earlier?
You can choose to repay all of your loan at any point in time.
If you decide to pursue this option, please call our helpful business loans professionals. The professionals will provide you with repayment details along with an early payout estimate. This is calculated as the sum of the principal remaining plus any accrued interest as of the time of early payout and 1.5% of the principal balance plus any outstanding fees.
What is the process for repayments?
To ensure you do not miss repayments and to fit in with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being transparent about how we collect, use, exchange and protect your information, is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We use an advanced bank verification system link to immediately verify your bank account information online, allowing us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner uses an asset that they own to secure the funding. The asset could be an asset belonging to the personal, like the family home, or a business asset like a truck as well as a piece of machine.
The majority of banks, including the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan, your assets could be sold by the lender. In essence, it is an opportunity to secure new financing using the value of what you already own.
Do I require security to get a business loan?
Up to $150K in loans no asset security is required in advance to gain access to the funds however, we do need an individual guarantee. In the event that you fulfill the loan terms (as detailed in your loan contract), asset security is not required. For loans that exceed $150,000, typically, you will need personal ensure and security is provided in the form of the charge of assets.