FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Boulcott Small Business Loans
Tell me more about Boulcott Small Business Loans
Boulcott unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an ordinary business loan?
You can apply to get this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and the money could be available in just 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. Our business loan is an upfront priced loan and you’ll be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into either weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business reason, such as the management of cash flow, business remodels and marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal reasons.
About Larger Boulcott Business Loans
What is the Larger Boulcott Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to be trading for at least 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost any company use, including business remodeling, buying equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This is by taking a charge on assets and can include registration on the PPSR or filing as a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature rather than specifying security over a particular asset. The person signing the ensure is personally liable in the event that the business borrower is unable to repay 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 goods or assets). The PPSR grants the priority of personal property granted in accordance with the date on which a security interest has been registered.
A caveat is a legal document that is filed to offer the legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan of more than $250,000, we may offer a preliminary pre-approval to help smooth out the process. We may be able to apply for this without a credit check and within six hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial well-being questions. This is not an offer of credit or guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you may receive may be on different conditions.
Do I qualify for funds?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Complete the online form in just a few minutes, and an experienced company credit specialist will be in touch to assist you.
To be eligible for up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent twelve months of bank records, IRD statements, last 2 years finalised financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we typically provide a response in one hour if you submit your request in standard company hours and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statements , we are able to provide a decision in as little as 1 company day.
For the Larger Business Loan ($100K or more) we might be able to provide you with conditional pre-approval within six hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Some offers have been approved in just 24 hours.
The most effective method is to make sure you apply during standard company hours, and allow us to use the modern bank verification to instantly verify your bank account information online. If you opt to send us the copies of bank statements , it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) We can usually offer a response in one hour if you make your application during normal business hours and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements, we will be able to provide the decision within an business day.
For Larger Business Loans ($100K to $500K) we could be capable of provide you with a conditional pre-approval in about 6 hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Some agreements have been approved within just 24 hours.
The most effective method can be make sure you apply during standard business hours. You can also let us use the advance bank verification link to instantly verify your bank information online. If you send us duplicates of your banking statement, it can take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of elements in order to assess your health of the business as well as the amount of the repayments your company is able to afford. The total amount of your loan will be contingent on the specifics the business.
When you make an application for a specific amount we look at a range of aspects to determine the well-being of the company and the level of the repayments your business will be able to support. The amount you receive from your loan will depend on the specifics the company.
Fees & repayments
What is the cost for the cost of a company loan?
When you request our business credit, we’ll assess the risk profile the business and offer you with a customised offer including the amount of the loan, the duration and the interest rates. This company loan is an upfront cost loan therefore you will know the exact amount to be paid, including any charges or interest.
What determines the amount I am charged?
Business loan interest rates vary due to factors like the amount of money borrowed, the business assets the money will be used for and the sector the business operates in, how long the company is in operation, how long the company has enough cash flow to pay for the loan, and the overall health as well as creditworthiness company.
What are the costs?
There are no hidden costs for our business loans, and you’ll know exactly how much you be required to pay, and when, right from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You are able to apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan in advance?
You may choose to pay back the total amount of your advance loan at any time.
If you are deciding to do this please contact our helpful company loan specialists. We will provide you with the details of your repayment and an early payout figure. It will be calculated using the total of the principal amount remaining plus any accrued interest as of the date of early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To make sure you do not miss repayments and to fit in with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being transparent about how we collect data, process, exchange and protect your information, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We make use of an advanced bank verification system to instantly confirm your bank account information online, allowing us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term “asset-based” refers to borrowing where a business owner uses assets they own to get the funding. The asset may be an asset belonging to the personal, like the family home or a company asset such as a vehicle or other piece of machinery.
The majority of banks, not just the major banks, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, your asset may be transferred to the lender. In essence, it’s the process of securing new financing using the value of what you already own.
Do I need security for an business loan?
For loans up to $150K there is no requirement for asset security before you can access the money however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract document), asset security will never be required. For loans over $150,000 typically, you will need the option of a personal ensure and security in the form of an asset charge.