FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Belmont Small Business Loans
Let me know what you think of the Belmont Small Business Loans
Belmont unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an traditional company loan?
The application to get this Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and the money could be available in just 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. This business loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any fees, charges or charges. This is then divided into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly every business reason, such as cash flow management, business improvements, advertising to purchase inventory, new equipment, as general working capital, and much more. The loan is not available for personal purposes.
Concerning Larger Belmont Business Loans
What is the Larger Belmont Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been in operation for at least 3 years, and have an annual income of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funding for?
A larger company loan can be used to fund almost all business need, including business improvements, purchasing new equipment or inventory for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. This can be done as a result of an charge over assets and can include registration with the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to repay a loan which is generally based rather than stating security over an asset. The person who signs the guarantee is personally liable in the event that the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR permits preference over private property assigned in accordance with the date on which a security interest was registered.
A caveat is a legal document lodged to offer notice of a legal claim to property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan that is greater than $250K we can offer an initial pre-approval to ease the process. We might be able to apply for this without credit checks 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 questions. It is in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer you might receive could be subject to different terms.
Are I eligible for funding?
You can apply for an business 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)
- you must prove at least 6 months of trading (for a 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 quick and simple. Just fill out the online application within a couple minutes, and a dedicated business expert in lending will contact you to assist you.
To apply for up $100,000 you’ll require ID details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent twelve months of bank records, IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we can often provide a response in one hour – as long as you make your application in standard company timings and let us use the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we will be able to offer the decision in as little as one company day.
For the Larger Business Loan ($100K or more) we may be in a position to offer you with a conditional pre-approval in around six hours. After you’ve signed the 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 agreements have been approved within 24 hours.
The most efficient method would be to ensure you apply during standard company hours. Also, allow us to use our modern bank verification link to instantly confirm your bank details online. If you decide to send us duplicates of your banking accounts, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we typically offer an answer within one hour if you submit your request in standard business timings and allow 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 statements, we will be able to offer a decision within an business day.
If you are applying for Larger Business Loans ($100K and up) We may be capable of provide the conditional pre-approval in around six hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Some offers have been approved within 24 hours.
The fastest way is to make sure you apply during standard business hours. Also, allow us to use the advanced bank verification system link to verify your bank account information online. If you send us documents from your account accounts, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we consider a variety of variables in order to assess your health of the company and the amount of repayments your business will be able to support. The total amount of the loan will be determined by the particular circumstances for your business.
When you make an application for a specific amount we consider a variety of aspects to determine how much we can lend you such as health that is your business and the level of repayments your business can afford. The total amount of the loan will be determined by the particulars for your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for one of our business loans, we will assess the risk assessment the company and offer an individualised offer that includes the amount of loan, the term and the interest rates. It is a business loan is a loan that is priced upfront which means you be aware of the total amount due, which includes any charges or interest.
What determines the amount I will be charged?
Business loan interest rates differ based on various factors including the amount that is borrowed, what business assets the funds will be used for and the sector the company is operating in, how long the company has been running for, how long the business has sufficient cash flow to pay for the loan, and also the general well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our business loans. You’ll know exactly how much it is that you be required to pay, and when, from the very first day. There’s no compounding interest and no additional fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You can make an application for loans without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan earlier?
You can repay all of your advance loan at any time.
If you are deciding to pursue this option, please talk to one of our helpful company loan experts. They’ll provide you with the details of your repayment along with an early payout estimate. The figure will be calculated as the total of the principal amount remaining and accrued interest to the time of the early payout, plus 1.5 percent of the remaining principal plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work with your cash flow general, we offer repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being transparent about the ways we gather information, use it, and exchange it, as well as secure your information, is of paramount importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We use an advanced bank verification system to immediately verify the bank account details online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner borrows from assets they own to make a loan. The asset can be an asset belonging to the personal, like the family home, or it could be a business asset like a truck or piece of equipment.
The vast majority of banks, not just the big banks, tend to secure loans against an asset. If you have trouble paying back the loan, then your assets could be taken over by the lender. In essence, it is a way of securing new funding using the worth of the asset you already own.
Should I need security to get an company loan?
For loans of up to $150,000, the requirement for asset security is not required in advance to gain access to the funds, however we require a personal guarantee. need a personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract) Asset security will never be needed. If you take out loans in excess of $150K generally, there is the option of a personal ensure and security in the form of a charge over assets.