FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Beachlands Small Business Loans
Tell me more about Beachlands Small Business Loans
Beachlands unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from an ordinary company loan?
You can apply to your Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and have the funds available in just 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. Our company loan is a loan that is priced upfront therefore you’ll be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business reason, such as cash flow management, business remodels and marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal purposes.
About Larger Beachlands Business Loans
What is the Larger Beachlands Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be utilised?
A Larger Business Loan can be used for almost every business purpose including company renovations, purchase of equipment or inventory or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It is usually by taking a charge on assets, and could include registration through the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is generally in nature rather than stipulating security over an asset. The person signing the ensure is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR allows priority over personal property to be granted according to the date the security interest that is registered.
An affidavit is an official form of document to offer the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan of more than $250,000, we may offer an initial pre-approval that will help smooth out the process. We may be able to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial well-being checks. This is not an offer or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be on different conditions.
Do I qualify for funds?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (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 fast and simple. Just fill out the online application in few minutes and an experienced business credit specialist will contact you to assist you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s License), an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we usually offer an answer within one hour – as long as you apply in quality business hours and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements , we are able to provide an answer in as little as an business day.
For Larger Business Loans ($100K and up) we might be capable of provide you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved in less than 24 hours.
The quickest way to apply would be to ensure you apply during standard business hours. You can also allow us to use the modern bank verification to instantly verify your bank account information online. If you choose to upload documents from your account statements , it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we usually offer an answer within one hour – as long as you make your application within standard business time and permit us to use the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements we can offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be capable of provide you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain deals have been approved within the space of 24 hours.
The quickest method is to make sure you apply during normal business hours. Also, allow us to use the advance bank verification to verify your bank information online. If you upload duplicates of your banking accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of aspects for determining how much we can lend you health of your business as well as the amount of repayments that your business can support. The total amount of your loan will be contingent on the particular circumstances for your company.
When you apply for a specific amount we will consider a number of aspects to determine the well-being that is your company and the amount of repayments that your company can support. The total amount of your loan will be contingent on the particulars for your business.
Fees & repayments
How do you charge for an company loan?
When you apply for our company loan, we’ll assess the risk assessment of your business and offer an individualised offer that includes the amount of loan, the term and interest rates. The company loan is an upfront priced loan which means you be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Interest rates for business loans rates depend on a variety of factors such as the amount that is of money borrowed, the business assets the funds are used to purchase in addition to the industry that the company operates in, the long the company has been running for, how long the company has sufficient cash flow to fund the loan, and also the general health and creditworthiness of the company.
What are the charges?
There are no hidden fees for our company loans. You’ll know exactly how much you’ll need to pay, and at what time, from the first day. There’s not any compounding interest and no extra fees (as as you make your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I repay the loan earlier?
You can repay the entire amount of your loan at any point in time.
If you decide to take this route, please call our helpful company credit specialists. We will provide you with details on repayment as well as an early payout amount. It will be calculated using the total of the principal balance and the accrued interest up to the time of early payment and 1.5 percent of the principal remaining and any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being transparent about the ways we gather data, process, exchange and ensure the security of your information 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 utilise industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We utilise a sophisticated bank verification system to immediately confirm your bank account information online so we can provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner makes use of the assets they have to secure the funding. The asset can be an asset belonging to the personal, like the family home or an company asset such as a vehicle or other piece of machinery.
The vast majority of the lenders including the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, your asset may be taken over by the lender. In essence it is the process of securing additional financing using the worth of the asset you already own.
Do I need security to secure a company loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds, however we do need a personal guarantee. If you adhere to your loan obligations (as detailed in the loan contract), asset security will never be needed. For loans of over $150K generally there is an individual guarantee and security that is in the form a charge over assets.