FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Bayswater Small Business Loans
Let me know about the Bayswater Small Business Loans
Bayswater unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from the traditional company loan?
It is possible to apply to your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and have the funds on your account within 24 hours. Traditional business loans refer to an annual rate of interest along with other charges and fees. We offer a business loan is a cash-based loan and you’ll know in advance the total amount payable including the interest, fees and charges. This is then broken down into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business reason, such as the management of cash flow, business remodeling, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal purposes.
Concerning Larger Bayswater Business Loans
What is the Larger Bayswater Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to be in operation for at least 3 years, and have an annual income of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be utilised?
A larger company loan is a great option for almost every company need, including business renovations, to purchase inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually as a result of an charge on assets, which could also include registration with the PPSR or filing a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature, rather than stipulating security over a particular asset. The person who signs the ensure is personally responsible if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR allows priority over personal property to be assigned depending on the date that a security interest has been registered.
A caveat is a legal document that is filed to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan of $250,000 or more we may be able to provide an initial pre-approval in order to smooth out the process. It is possible to get this done without a credit check, and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial health checks. This is not an offer or guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you might receive could be based on different conditions.
Application process
Can I be eligible for funding?
You can apply 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 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a couple minutes, and a dedicated business loan specialist will contact you to guide you.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details of the application, including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we can often provide a response in one hour – as long as you submit your request within quality company times and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we are able to provide a decision within an business day.
For the Larger Business Loan ($100K or more) we could be in a position to provide you with conditional pre-approval within about six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be quicker based on the circumstances of each application. Certain offers have been approved within just 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. You can also permit us to use the advance bank verification to instantly verify your bank account information online. If you decide to upload documents from your account statement, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we can often offer an answer in just one hour, provided you submit your request during normal business hours and allow us to use the bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can provide the decision within 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be likely to provide you with conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Some agreements have been approved within 24 hours.
The most effective method would be to make sure you apply during standard business hours and allow us to use the advance bank verification to instantly verify your bank account information online. If you choose to send us the copies of bank accounts, it may take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a specific amount we take into consideration a range of aspects to determine what is the well-being of the business as well as the amount of repayments your business is able to afford. 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 specific amount we will consider a number of aspects to determine how much we can lend you such as well-being of your company as well as the amount of payments your company can support. The total amount of the loan will be determined by the specifics of your company.
Fees & repayments
How do you charge for the cost of a business loan?
When you apply for business loans with us business loans, we will assess the risk assessment of your business and provide you with a customised offer that includes loan amount, term and interest rates. It is a company loan is an upfront cost loan therefore you will be aware in advance of the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I will be charged?
The interest rates on company loans rates differ based on various factors including the amount borrowed, the business assets the funds will be used for as well as the field the company is operating in, how long the company is in operation for, in the event that the business has sufficient cash flow to cover the loan, and also the overall health or creditworthiness of the business.
What are the cost?
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, starting from day one. There’s no compounding and no extra fees (as long as you make your payments on time).
We do not charge an Application Fee. You can get a cash loan with no upfront cost 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 amount of the loan.
Can I pay off the loan earlier?
You can repay all of your advance loan at any time.
If you choose to take this route, please talk to one of our helpful business credit professionals. They will provide you with the details of your repayment as well as an early payout amount. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payment and 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To help you avoid missing payments and to work your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being upfront about how we collect the information we collect, use, share and safeguard your data, is crucial and an integral element of our relationship with 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 financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We make use of an advanced bank verification system to immediately verify the bank account details online. This allows us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner utilises an asset they own to get a loan. The asset can be a personal asset like the family home, or it could be a business asset like a truck or other piece of machinery.
The vast majority of lending institutions, even the big banks, tend to make loans secured by an asset. If you have trouble paying back the loan, your assets could be transferred to the lender. In essence, it is the process of securing new financing using the worth of the asset you already own.
Are I need security to secure a company loan?
For loans of up to $150,000, it is not necessary to secure assets upfront to access the money but we do need the personal guarantee. As long as you follow your loan commitments (as specified in your loan contract) the security of assets will never be needed. For loans that exceed $150,000, typically, you will need the option of a personal guarantee and security in the form of a charge over assets.