FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Birkdale Small Business Loans
Tell me how you can avail the Birkdale Small Business Loans
Birkdale unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from the traditional company loan?
You can apply to get the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and funds may be available in just 24 hours. Traditional business loans reference an interest rate per annum as well as other fees and charges. This business loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount due, which includes any fees, interest or charges. This is then broken down into weekly or daily payment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost every company reason, such as cash flow management, business remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Birkdale Business Loans
What is the Larger Birkdale Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the business needs to be operating for at least three years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can the funds be used for?
A Business Loan of a larger size can be used for nearly every business need, including company renovations, purchase of new equipment or inventory, as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This can be done as a result of an charge over assets and can include the registration of this in the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature rather than specifying the security for a particular asset. The person signing the ensure is personally liable in the event that the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants the priority of personal property assigned depending on the date that a security interest was registered.
An affidavit is an official form of document to offer an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan of more than $250,000, we may offer an initial pre-approval in order to simplify the process. It is possible to do this without a credit check and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial health checks. It’s neither an offer nor a guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you might receive could be based on different terms.
Do I have the right to receive funds?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for a 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 quick and easy. Just complete the online application within a couple minutes, and an experienced company expert in lending will contact you to help you.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s License) along with a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank statements, IRD statement as well as the two most recent years’ financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) We can usually provide an answer within an hour – as long as you make your application during quality business times and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statements , we are able to offer an answer in just 1 company day.
For the Larger Business Loan ($100K and up) we may be in a position to offer you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however it could be faster 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 business hours. Also, permit us to use the advance bank verification to instantly verify your bank information online. If you upload documents from your account statement, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we typically offer a response in one hour – as long as you make your application in standard business hours and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statement, we’ll offer the decision in just one business day.
For Larger Business Loans ($100K to $500K) we could be capable of provide the conditional pre-approval within 6 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 upon the circumstances for each application. Some transactions have received approval within 24 hours.
The quickest method can be ensure you apply during normal business hours. You can also allow us to use the advance bank verification link to check your bank’s information online. If you upload duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount, we will consider a number of factors for determining how much we can lend you well-being for your business as well as the amount of repayments that your business can afford. The amount you receive from your loan will depend on the specifics for your company.
When you make an application for a specific amount we take into consideration a variety of aspects to determine how much we can lend you such as health that is your company and the level of payments your company will be able to support. The amount you receive from your loan will depend on the particulars for your company.
Fees & repayments
How much should you charge for an business loan?
If you decide to make an application for one of our business credit, we’ll assess the risk assessment of your company and offer you with a tailored offer that includes the loan amount, the terms and interest rates. This business loan is an upfront-priced loan which means you be aware of the total amount payable 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 factors like the amount of money that is borrowed, what business assets the money are used to purchase in addition to the industry that the business operates in, how long the business has been running, how long the business has enough cash flow to support the loan, as well as the general health or creditworthiness of the business.
What are the costs?
There are no hidden costs with our business loans, and you’ll know precisely what you be required to pay and when, from the very first day. There’s not any compounding interest and there are no additional charges (as long as you make your payments on time).
We do not charge an application fee. You are able to apply for a loan without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for 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 early?
You can repay all of your advance loan at any time.
If you do decide to take this route, please contact our helpful company lending experts. The professionals will provide you with details for repayment and an early payment figure. This is calculated as the total of the principal balance and any accrued interest at the time of early payment in addition to 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
To make sure that you don’t miss payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and ensure the security of 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 and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system that allows you to immediately confirm your bank account information online, allowing us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner borrows from assets they own to obtain the funding. The asset can be either a personal asset like the family home, or an company asset such as a truck or piece or equipment.
The vast majority of the lenders including the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan then the asset could be taken over by the lender. In essence it’s the process of securing new financing using the worth of the asset you already have.
Should I require security to get an company 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 the personal guarantee. So long as you comply with the loan terms (as specified in your loan contract document) Asset security will never be needed. If you take out loans in excess of $150,000 generally, you can get an individual guarantee and security is provided in the form of a charge over assets.