FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Birkdale Small Business Loans
Let me know more about Birkdale Small Business Loans
Birkdale unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional business loan?
Apply to the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and funds may be available in just 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. Our company loan is an upfront priced loan so you will be aware of the amount you will have to pay, including the interest, fees and charges. This is then broken down into either weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company use, including cash flow management, company improvements, advertising to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
About larger Birkdale Business Loans
What is the Larger Birkdale Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan that is this large the business needs to be trading for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A Business Loan of a larger size can be used to fund almost all business purpose including business remodeling, buying inventory or new equipment or as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. This is by taking a charge on assets, which could also be registered on the PPSR or filing a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is general in nature, rather than stipulating security over a particular asset. The person who is signing the ensure is personally liable in the event that the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be assigned according to the date the security interest that is registered.
A caveat is a legal document filed to provide the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000 it’s possible to offer an initial pre-approval to ease the process. It is possible to do this without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes you answering some financial well-being questions. This is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer you are offered could be based on different terms.
Application process
Can I be eligible for funding?
You may be eligible 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 worth of trade (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application in few minutes and a dedicated company expert in lending will contact you to guide you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) We can usually offer an answer within one hour – as long as you apply during quality company timings and let us use the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statements , we are able to offer a decision in just the span of one company day.
For the Larger Business Loan ($100K or more) we may be likely to offer you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however it could be faster based on the specifics of each application. Some offers have been approved in just 24 hours.
The quickest method would be to make sure you apply during normal business hours and allow us to use our modern bank verification link to instantly verify your bank information online. If you opt to upload documents from your account statements it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we can often offer an answer in just one hour, provided you apply at standard business time and let us use the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we are able to offer an answer in as little as one business day.
For Larger Business Loans ($100K up to $500,000) we might be likely to provide the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Some offers have been approved within less than 24 hours.
The quickest method would be to make sure you apply during normal business hours, and let us use the advance bank verification link to verify your bank information online. If you choose to send us copies of your bank accounts, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we will consider a number of factors that determine the health that is your business and the amount of repayments that your company can support. The amount you receive from your loan will depend on the specific circumstances that are unique to your company.
When you submit an application for a certain amount, we look at a range of factors to assess your health that is your business and the extent of repayments your business can support. The total amount of the loan will be determined by the particular circumstances of your business.
Fees & repayments
How much do you charge for a business loan?
When you apply for the business credit, we will assess the risk profile the company and provide you with a tailored offer that includes the amount of loan, the term and the interest rates. It is a business loan is an upfront cost loan therefore you will know in advance the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I will be charged?
Interest rates for business loans rates vary due to factors such as the amount that is borrowed, the company assets the money are used to purchase, the industry the company is in, how long the business is in operation as well as how long the business has sufficient cash flow to support the loan, and the overall well-being and creditworthiness of the company.
What are the fees?
There aren’t any hidden charges for our company loans, and you’ll know exactly how much you’ll be required to pay and when, starting from the day you sign up. There’s no compounding interest, and there are no additional charges (as as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan with with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You can choose to repay the entire amount of the loan at any point in time.
If you choose to do this please talk to one of our helpful business loan professionals. The experts will offer you with repayment details and an early payout figure. The figure will be calculated as the total of the principal remaining plus any accrued interest as of the date of early payout in addition to 1.5% of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect data, process, exchange and ensure the security of your information is of huge importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We employ an exceptionally sophisticated bank verification system that allows you to instantly verify your bank account details online, allowing us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the company owner utilises assets they own to get the loan. The asset may be an individual asset, such as the family home or it could be a business asset like a truck or piece of equipment.
The vast majority of the lenders including the largest banks, are inclined to guarantee loans against assets. If you have trouble paying back the loan, then the asset could be transferred to the lender. In essence it’s the process of securing new financing by using the value of what you already own.
What do I require security to get a company loan?
For loans of up to $150,000, it is not necessary to secure assets in advance to gain access to the funds however, we require a personal guarantee. require an individual guarantee. So long as you comply with the loan terms (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150,000, generally, there is the option of a personal guarantee and security that is in the form charges on assets.