FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Birkenhead Small Business Loans
Tell me how you are able to avail the Birkenhead Small Business Loans
Birkenhead unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from a traditional company loan?
The application to get this Small Business Loan in under 10 minutes by phone. You will receive a same day response and the funds could be on your account within 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. The business loan is an upfront priced loan so you will be aware of the total amount payable including any fees, interest or charges. This is then broken down into either weekly or daily installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business reason, such as managing cash flows, company remodels and marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal use.
About larger Birkenhead Business Loans
What is the Larger Birkenhead Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been in operation for at least 3 years and have an annual turnover of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly any company purpose including business renovations, purchase of equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. This is by taking a charge on assets and can include the registration of this in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature rather than stating security over a particular asset. The person who signs the guarantee is personally accountable if the business lender is not able to pay back 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 that are registered for personal property (including items or assets). The PPSR allows priority over personal property to be granted according to the date a security interest was registered.
An affidavit is an official document lodged to offer the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250,000 we can offer an initial pre-approval that will help make the process. We may be able to get this done without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial health checks. It is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be on different conditions.
The application process
Do I have the right to receive funds?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for 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 complete the online application within a couple minutes, and a dedicated company expert in lending will be in touch to help you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent and 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we usually offer an answer within an hour, provided you apply during quality business times and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statements , we’ll be able to offer the decision in as little as an company day.
For the Larger Business Loan ($100K to $500K) we may be capable of offer the conditional pre-approval within six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Some offers have been approved in less than 24 hours.
The quickest method can be ensure you apply during standard company hours. You can also permit us to use the modern bank verification link to instantly verify your bank information online. If you decide to send us the copies of bank statements it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we typically offer an answer within an hour – as long as you make your application at standard business time and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you decide to submit copies of your bank statements we can provide a decision in just an business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be capable of provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain agreements have been approved in 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. You can also allow us to use the modern bank verification link to instantly verify your bank information online. If you upload the copies of bank statements it will take a little longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we look at a variety of elements that determine how much we can lend you well-being that is your business and the level of the repayments your company can support. The amount you receive from your loan will depend on the specific circumstances for your business.
If you apply for a set amount, we take into consideration a variety of aspects to assess how much we can lend you such as well-being of your business and the extent of the repayments your business can afford. The amount you receive from your loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for the company financing, we will assess the risk profile of your business and offer you with a customised offer that includes the amount of the loan, the duration and interest rates. It is a business loan is an upfront cost loan therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What determines the amount I’m charged?
Business loan interest rates depend on several factors including the amount borrowed, the business assets the funds are used to purchase in addition to the industry that the company is operating in, how long the business has been operating as well as what percentage of the business has sufficient cash flow to cover the loan, as well as the general health as well as creditworthiness company.
What are the cost?
There aren’t any hidden costs for our business loans. You’ll know precisely how much you’ll be required to pay, and when, right from day one. There’s no compounding interest, and no additional fees (as long as you are able to make your payments in time).
We do not charge an application fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of the loan at any point in time.
If you choose to take this route, please speak to our friendly business credit specialists. We will provide you with repayment details along with an early payout estimate. This will be calculated as the total of the principal amount 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 make sure you do not miss due dates and also to be in line your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about how we collect data, process, exchange and ensure the security of your information is crucial and is a crucial element 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 and financial data and our funders are ISO 27001 certified for our commitment to customer security and privacy. We employ a highly sophisticated banking verification system to instantly verify your bank account information online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a company owner uses the assets they have to make the funds for a loan. The asset could be an individual asset, such as the family home or an business property like a truck or piece of equipment.
The majority of lending institutions, even the big banks, tend to guarantee loans against an asset. If you’re struggling to pay back the loan, then the asset could be taken over by the lender. In essence it is means of securing additional financing using the value of what you already have.
What do I require security to get a company loan?
For loans that exceed $150,000, no asset security is required upfront to access the money, however we require a personal guarantee. require an individual guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract document) Asset security will never be needed. If you take out loans in excess of $150,000 typically, you will need an individual ensure and security that is in the form a charge over assets.