FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Brown Hill Creek Small Business Loans
Let me know about the Brown Hill Creek Small Business Loans
Brown Hill Creek unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from the traditional company loan?
Apply for this Small Business Loan in under 10 minutes over the phone, receive a same day response and the money could be in your account in 24 hours. Traditional company loans reference an interest rate per annum as well as other fees and charges. We offer a company loan is a cash-based loan therefore you’ll know ahead of time the total amount to be paid, including any fees, interest or charges. This is then broken down into weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company use, including cash flow management, business improvements, advertising to purchase inventory, new equipment, as general working capital and so much more. The loan cannot be used for personal purposes.
Concerning Larger Brown Hill Creek Business Loans
What is the Larger Brown Hill Creek Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the business needs to be operating for a minimum of 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A large business loan can be used for almost any business use, including business renovations, purchase of inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It is usually as a result of an charge against assets, and could be registered in the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is generally in nature rather than defining the security of a specific asset. The person who signs the guarantee is personally liable if the company creditor is unable to make the repayment.
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 priority over personal property to be granted according to the date a registration of a security interest.
Caveats are legal document filed to offer notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan of $250K or more we can offer an initial pre-approval that will help make the process. It is possible to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial well-being questions. It is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could have different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a few minutes and an experienced company credit specialist will be in touch to assist you.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent and 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer in just one hour if you make your application in standard business time and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statement, we’ll provide the decision within just 1 business day.
For Larger Business Loans ($100K to $500K) we may be in a position to provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The fastest way can be ensure you apply during standard company hours. Also, permit us to use the advanced bank verification system to confirm your bank details online. If you decide to send us documents from your account statements it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour, provided you submit your request within standard business time 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’ll be able to offer the decision in as little as the span of one business day.
For the Larger Business Loans ($100K or more) we may be able to provide the conditional pre-approval within six hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some offers have been approved in 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours and allow us to use the advance bank verification to verify your bank account information online. If you opt to send us documents from your account statements, it will take a little longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a certain amount, we will consider a number of variables in order to assess your health for your business and the extent of repayments your business can support. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
When you apply for a certain amount, we will consider a number of aspects to determine the well-being for your company and the level of the repayments your business is able to afford. The amount you receive from your loan will be determined by the specifics the business.
Fees & repayments
How do you charge for a company loan?
If you decide to apply for the company loans, we will assess the risk assessment the business and provide you with a customised offer including the amount of the loan, the duration and the interest rates. This company loan is a loan that is priced upfront which means you know the exact amount you will have to pay, including interest rates, fees or charges.
What determines the amount I am charged?
Interest rates for business loans rates differ based on various variables like the amount to be 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 operating and how long the company has sufficient cash flow to pay for the loan, and also the overall health or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges with our business loans. You’ll be aware of the amount it is that you be required to pay, and at what time, from the first day. There’s no compounding and there are no additional charges (as as long as you pay your payments in time).
We do not charge an Application Fee. You can request a credit loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan early?
You can decide to repay the entire amount of your loan at any point in time.
If you are deciding to pursue this option, please speak to our friendly company credit specialists. They will provide you with details for repayment along with an early payout estimate. 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 amount remaining plus any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow routine, we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear the ways we gather the information we collect, use, share and protect your information, is crucial and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and security. We utilise a sophisticated bank verification system to immediately verify your bank account information online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an business owner borrows from an asset they own to secure the funds for a loan. The asset could be an asset belonging to the personal, like the family home, or a business asset such as a truck or piece of equipment.
The majority of lenders, including the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan then the asset could be taken over by the lender. In essence it is a way of securing additional financing making use of the value of what you already own.
Should I need security for a company loan?
For loans that exceed $150K, it is not necessary to secure assets in advance to gain access to the funds but we require a personal guarantee. require an individual guarantee. As long as you follow your loan commitments (as stipulated in your loan contract), asset security will never be needed. For loans of over $150,000 typically, you will need an individual guarantee and security that is in the form an asset charge.