FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Burnside Small Business Loans
Let me know how you are able to avail the Burnside Small Business Loans
Burnside unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an ordinary company loan?
Apply for your Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and the funds could be on your account within 24 hours. Traditional business loans are based on an annual interest rate plus other fees and charges. We offer a company loan is a cash-based loan which means you be aware of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business purpose including the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal use.
Concerning Larger Burnside Business Loans
What is the Larger Burnside Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been trading for at least 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can the funding be used for?
A larger business loan can be used for nearly any business use, including business improvements, purchasing new equipment or inventory or as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It is usually by taking a charge over assets, and may include registration through the PPSR or registering a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature, rather than stating security over an asset. The person who is signing the guarantee is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR grants priority over personal property to be granted according to the date a security interest has been registered.
Caveats are legal document filed to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of more than $250,000 it is possible to offer 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 you answering a few financial health checks. This is not an offer or guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you are offered could be on different conditions.
Application process
Do I qualify for funds?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Complete the online form in few minutes and an experienced business credit specialist will call you to guide you through the process.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank records, IRD statements Last 2 years’ finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within one hour, provided you apply at quality business timings and allow us to 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 provide a decision in as little as the span of one business day.
For the Larger Business Loan ($100K or more) we may be capable of offer you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some offers have been approved in just 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours. You can also let us use the modern bank verification link to instantly confirm your bank details online. If you opt to send us documents from your account statements it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we usually offer an answer in just one hour – provided you submit your request at normal business hours and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements we can offer a decision within an business day.
For the Larger Business Loans ($100K or more) We may be likely to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The most efficient method can be ensure you apply during normal business hours. You can also allow us to use our sophisticated bank verification to instantly verify your bank account information online. If you upload duplicates of your banking statement, it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount we will consider a number of factors that determine how much we can lend you well-being that is your business and the level of payments your business can support. The total amount of your loan will depend on the particular circumstances for your company.
When you make an application for a specific amount we look at a range of variables to determine how much we can lend you such as well-being of the company as well as the amount of repayments that your company is able to afford. The amount you receive from your loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
What is the cost for a business loan?
When you apply for the company credit, we’ll assess the risk profile of your business and provide an individualised proposal that includes the amount of the loan, the duration and the interest rates. It is a business loan is an upfront cost loan so you will know in advance the total amount payable including any charges or interest.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates depend on a variety of factors such as the amount that is of money borrowed, the company assets the money will be used for, the industry the business operates in, the long the company has been operating for, what percentage of the company has sufficient cash flow to fund the loan, as well as the general well-being as well as creditworthiness business.
What are the costs?
There are no hidden fees for our company loans. You’ll know precisely what it is that you be required to pay and when, from the day you sign up. There’s no compounding interest, and no additional fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to request a credit loan with without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated 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 amount of the loan.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of the loan at any point in time.
If you do decide to do this please contact our helpful business loans experts. They’ll offer you with details for repayment along with an early payout estimate. It will be calculated using the sum of the principal amount remaining plus any accrued interest as of the time of early payment and 1.5% of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To ensure that you don’t miss payments and to work your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear how we collect the information we collect, use, share and secure your information, is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system to immediately verify your bank account details online, allowing us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses an asset that they own to get a loan. The asset can be a personal asset like the family home or an business property like a truck as well as a piece of machine.
The majority of lending institutions, including the largest banks, are inclined to guarantee loans against an asset. If you have trouble paying back the loan, then your assets could be offered for sale by the lender. In essence it is means of securing additional financing using the worth of the asset you already own.
Are I require security for a company loan?
Up to $150,000 in loans there is no requirement for asset security in advance to gain access to the funds, however we do require an individual guarantee. If you adhere to your loan commitments (as stated in the loan contract), asset security will never be needed. For loans that exceed $150,000, generally, there is personal ensure and security that is in the form the charge of assets.