FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Bellevue Heights Small Business Loans
Tell me more about Bellevue Heights Small Business Loans
Bellevue Heights unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
You can apply for your Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the money could be available in just 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. Our business loan is a cash-based loan which means you be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into either 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 every company need, such as managing cash flows, company improvements, advertising, to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available to fund personal expenses.
About Larger Bellevue Heights Business Loans
What is the Larger Bellevue Heights Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to be in operation for at least 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used to fund almost any company reason, such as company renovations, to purchase inventory or new equipment as well as for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. This is by taking a charge on assets, and could include registering this through the PPSR or the registration of a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature, rather than specifying the security for a particular asset. The person who is signing the guarantee is personally liable in the event that the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR grants priority over personal property to be granted depending on the date that a security interest was registered.
Caveats are legal form of document to offer notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan of more than $250K we may be able to provide a preliminary pre-approval to help simplify the process. We could be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial well-being questions. It’s in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer that you might receive could be based on different conditions.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a few minutes and a dedicated business lending specialist will call you to assist you.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent, 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we typically offer an answer in just one hour if you apply during standard business time and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statements , we are able to provide a decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we might be able to provide you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved within 24 hours.
The fastest way is to ensure you apply during standard business hours and permit us to use the advanced bank verification system to verify your bank information online. If you choose to upload copies of your bank accounts, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we usually offer an answer within one hour if you submit your request within standard business hours and let us use the bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statement, we’ll provide an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) We may be capable of offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain offers have been approved in just 24 hours.
The fastest way would be to ensure you apply during standard business hours and permit us to use the modern bank verification to instantly verify your bank account information online. If you decide to upload copies of your bank statements, it will take a little longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a particular amount, we will consider a number of variables in order to assess your well-being of the company and the level of repayments your business can support. The total amount of the loan will be determined by the specifics that are unique to your company.
When you make an application for a particular amount, we consider a variety of variables to determine your well-being for your business and the extent of repayments your company will be able to support. The total amount of your loan will be determined by the particulars for your business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to make an application for our company loans, we will assess the risk assessment that you have for your company and provide you with a tailored proposal that includes the amount of the loan, the duration and the interest rates. The company loan is an upfront priced loan therefore you will be aware of the total amount payable including any interest rates, fees or charges.
What is the factor that determines the price I pay?
Interest rates for company loans rates vary due to factors including the amount borrowed, the business assets the money will be used for as well as the field the business operates in, how long the business has been running, in the event that the company has sufficient cash flow to pay for the loan, and general health and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs for our company loans. You’ll know exactly how much you’ll need to pay and when, right from the very first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments punctually).
We do not charge an application fee. You are able to request a credit loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5% of the loan amount.
Do I have the option of paying off the loan in advance?
You may choose to pay back the total amount of your loan at any point in time.
If you choose to take this route, please talk to one of our helpful business lending specialists. We will provide you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining and any accrued interest at the time of early payout in addition to 1.5% of the principal balance and any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align with your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about how we collect, use, exchange and protect your information, is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We utilise a sophisticated bank verification system link to immediately verify the bank account details online so we can offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner makes use of an asset that they own to make the funding. The asset can be either an individual asset, such as the family home or an company asset such as a truck or piece or equipment.
The majority of lenders, even the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan, the asset might be taken over by the lender. In essence, it is an opportunity to secure new funding taking advantage of the value of what you already own.
Are I require security for an business loan?
For loans that exceed $150K, it is not necessary to secure assets in advance to gain access to the funds, however we require a personal guarantee. require an individual guarantee. So long as you comply with your loan obligations (as specified in your loan contract document), asset security is not needed. For loans that exceed $150K, generally, you can get a personal ensure and security in the form of the charge of assets.