FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Breaker Bay Small Business Loans
Let me know how you can avail the Breaker Bay Small Business Loans
Breaker Bay unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
It is possible to apply for this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and the money could be available in just 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. The business loan is a loan that is priced upfront and you’ll know in advance the total amount due, which includes any fees, interest or charges. This is then broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business reason, such as managing cash flows, company renovations, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal use.
About the Larger Breaker Bay Business Loans
What is the Larger Breaker Bay Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been operating for a minimum of 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funds for?
A large business loan can be used for almost every business purpose including business renovations, to purchase new equipment or inventory or as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This is by way of charge against assets, and could be registered with the PPSR or registering as a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally in nature rather than specifying the security for a particular asset. The person who signs the guarantee is personally liable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date the security interest that is registered.
The caveat can be described as a formal form of document to provide an official notice of a claim against a property.
What exactly is a preapproval without 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 simplify the process. We might be able to apply for this without a credit check, and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering a few financial well-being checks. This is not an offer of credit or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you are offered could have different terms.
Do I have the right to receive funds?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in just a few minutes, and a dedicated company loan specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Application details including credit consent twelve months of bank records, IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we can often provide a response in one hour, provided you apply within standard company hours and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statement, we’ll provide an answer within one business day.
For the Larger Business Loan ($100K to $500K) we could be able to provide you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Certain agreements have been approved within just 24 hours.
The quickest way to apply is to make sure you apply during normal business hours, and allow us to use our modern bank verification link to instantly verify your bank account information online. If you opt to send us copies of your bank accounts, it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) we typically offer a response in one hour if you make your application in standard business time and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements we can provide the decision in as little as the span of one business day.
For the Larger Business Loans ($100K to $500K) we may be likely to offer you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some agreements have been approved within 24 hours.
The most effective method for you to apply is ensure you apply during standard business hours. Also, allow us to use the sophisticated bank verification link to instantly confirm your bank details online. If you decide to upload the copies of bank statements, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a certain amount we will consider a number of elements in order to assess what is the health that is your company and the amount of payments your company will be able to support. The amount you receive from your loan will be contingent on the particular circumstances for your business.
When you submit an application for a certain amount, we consider a variety of elements to assess the well-being that is your company and the extent of repayments your business can support. The amount you receive from your loan will be determined by the particular circumstances of your company.
Fees & repayments
How much should you charge for a business loan?
When you apply for the company loan, we’ll assess the risk assessment that you have for your business and provide you with a customised offer including the amount of the loan, the duration and the interest rates. It is a business loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including any charges or interest.
What determines the amount I will be charged?
Business loan interest rates depend on a variety of 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 in operation and what percentage of the company has sufficient cash flow to fund the loan, as well as the overall health as well as creditworthiness company.
What are the costs?
There are no hidden fees for our business loans. You’ll be aware of the amount you’ll need to pay, and at what time, from day one. There’s no compounding interest and no extra fees (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to apply for a loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses 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 percent of the amount of loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of the loan early at any time.
If you do decide to pursue this option, please talk to one of our helpful business lending professionals. They will offer you with repayment details and an early payout figure. This is calculated as the sum of the principal remaining and the accrued interest up to the date of early payout and 1.5 percent of the principal remaining and any fees that remain unpaid.
How do repayments work?
To ensure that you don’t miss payments and to work with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing how we collect data, process, exchange and ensure the security of your information is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We utilise a sophisticated bank verification system to instantly verify the bank account details online so we can offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner borrows from the assets they have to get the loan. The asset may be an individual asset, such as the family home, or an company asset such as a truck or other piece of machinery.
The majority of lenders, not just the largest banks, are inclined to secure loans against assets. If you’re struggling to pay back the loan, the asset could be sold by the lender. In essence, it’s a way of securing new funding using the value of what you already have.
What do I require security for an business loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access but we require a personal guarantee. need a personal guarantee. So long as you comply with the terms of your loan (as detailed in your loan contract) the security of assets will never be required. For loans over $150,000 generally, there is a personal ensure and security in the form of a charge over assets.