FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Beach Haven Small Business Loans
Tell me how you can avail the Beach Haven Small Business Loans
Beach Haven 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 per day or weekly.
What is the Unsecured Loan different from an traditional business loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and funds may be in your account within 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. We offer a company loan is a loan that is priced upfront and you’ll know in advance the total amount payable including any interest, fees or charges. Then, it is broken down into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company purpose including control of cash flow business renovations, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan is not available for personal reasons.
About larger Beach Haven Business Loans
What is the Larger Beach Haven Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan that is this large, your business needs to have been in operation for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly all company need, including business improvements, purchasing equipment or inventory, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It is usually by way of charge on assets, which could also include registration with the PPSR or making a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally in nature rather than stipulating the security of a specific asset. The person who signs the guarantee is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR allows preference over private property granted in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal form of document to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan that exceeds $250K we can offer an initial pre-approval in order to ease the process. We could be able to make this decision without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health checks. This is not an offer of credit or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer you might receive could be based on different conditions.
Can I be eligible for funding?
You can apply 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)
- can demonstrate 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 simple and simple. Just fill out the online application within a few minutes and a dedicated company credit specialist will contact you to assist you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, plus interim financials from the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we can often offer an answer in just one hour, provided you make your application during standard business timings and you allow us to utilise the bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statement, we’ll offer a decision within just an company day.
For the Larger Business Loan ($100K to $500K) we could be capable of provide the conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain transactions have received approval in less than 24 hours.
The quickest method is to ensure you apply during standard business hours and let us use the modern bank verification to instantly confirm your bank details online. If you upload the copies of bank statement, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour if you apply within normal business timings and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statement, we’ll provide a decision within the span of one business day.
For Larger Business Loans ($100K up to $500,000) we could be capable of provide the conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some transactions have received approval within less than 24 hours.
The fastest way is to make sure you apply during normal business hours. Also, let us use the sophisticated bank verification link to instantly check your bank’s information online. If you upload the copies of bank statement, it may take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we will consider a number of factors to determine your health for your company as well as the amount of the repayments your business can support. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your company.
If you apply for a particular amount, we take into consideration a variety of variables to assess your well-being that is your company as well as the amount of repayments that your business can afford. The total amount of your loan will be determined by the particular circumstances the company.
Fees & repayments
What is the cost for an business loan?
When you make an application for our business credit, we will assess the risk assessment of your business and offer you with a customised offer, including the amount of the loan, the duration and interest rates. A company loan is an upfront priced loan which means you be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates vary due to factors such as the amount that is borrowed, what company assets the funds will be used for as well as the field the business is in, how long the business has been operating, how long the business has enough cash flow to fund the loan, as well as the general well-being as well as creditworthiness business.
What are the cost?
There are no hidden costs for our company loans, and you’ll know precisely what you’ll be required to pay and when, starting from the day you sign up. There’s no compounding and no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You can apply for a loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost 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 percent of the amount of loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back all of your advance loan at any time.
If you decide to pursue this option, please call our helpful business loan specialists. They will provide you with details for repayment as well as an early payout amount. This will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payout in addition to 1.5% of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide payments that are either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing the ways we gather the information we collect, use, share and safeguard your data, is crucial and is an essential 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 personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We employ an exceptionally sophisticated bank verification system that allows you to instantly verify your bank account details online, allowing us to provide 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 makes use of an asset that they own to get the loan. The asset can be either an asset belonging to the personal, like the family home or an business property like a truck or piece of equipment.
The vast majority of banks, even the largest banks, are inclined to guarantee loans against assets. If you’re having trouble paying back the loan then your asset may be taken over by the lender. In essence, it is a way of securing new financing by using the worth of the asset you already have.
Are I need security to get a company loan?
For loans that exceed $150,000, there is no requirement for asset security before you can access the money However, we do need a personal guarantee. As long as you follow the terms of your loan (as stipulated in the loan contract) the security of assets is not needed. For loans over $150K generally, you can get the option of a personal ensure and security in the form an asset charge.