FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Broadmeadows Small Business Loans
Tell me how you can avail the Broadmeadows Small Business Loans
Broadmeadows unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
You can apply for the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans are based on an interest rate per annum as well as other fees and charges. The company loan is a pre-paid loan therefore you’ll be aware of the total amount due, which includes the interest, fees and charges. This is then broken down into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including managing cash flows, business remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal use.
About Larger Broadmeadows Business Loans
What is the Larger Broadmeadows Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been in operation for at least 3 years and generate an annual revenue of $700,000. You must be 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 minimum 12 months of continuous trading.
What can I use the funds for?
A Business Loan of a larger size is a great option for almost all business reason, such as company renovations, purchase of inventory or new equipment for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This can be done as a result of an charge against assets, which could also include registration through the PPSR or making as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature rather than stating the security for a particular asset. The person who is signing the guarantee is personally responsible if the company 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 registered in respect of personal property (including the assets or goods). The PPSR gives preference over private property granted according to the date a security interest that is registered.
The caveat can be described as a formal document lodged to offer an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan that exceeds $250K we may be able to provide a preliminary pre-approval to help ease the process. It is possible to get this done without a credit check and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial well-being checks. It’s not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be on different terms.
Do I have the right to receive funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a few minutes and an experienced business lending specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll need the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) We can usually offer a response in one hour if you submit your request in quality company hours and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements , we are able to offer an answer in as little as one business day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with a conditional pre-approval in around 6 hours. After 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 less than 24 hours.
The most effective method can be ensure you apply during standard business hours, and allow us to use the advanced bank verification system to instantly verify your bank account information online. If you opt to upload duplicates of your banking statements , it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we usually offer an answer within one hour if you apply during normal business times and let us use the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statement, we’ll offer an answer within an business day.
For Larger Business Loans ($100K or more) we might be likely to provide you with conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some deals have been approved in less than 24 hours.
The quickest method is to ensure you apply during standard business hours and permit us to use the sophisticated bank verification link to instantly verify your bank account information online. If you decide to upload copies of your bank statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a specific amount we take into consideration a range of variables in order to assess what is the well-being of the business and the extent of payments your company is able to afford. The total amount of the loan will be determined by the particular circumstances for your business.
When you submit an application for a certain amount, we consider a variety of aspects to determine the health of the company and the extent of payments your company can support. The total amount of your loan will depend on the specifics of your business.
Fees & repayments
How do you charge for a company loan?
If you decide to make an application for the company credit, we’ll assess the risk profile that you have for your business and provide you with a tailored offer that includes the amount of loan, the term and the interest rates. The business loan is a loan that is priced upfront which means you know in advance the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Business loan interest rates depend on several variables like the amount to be of money borrowed, the company assets the money will be used for as well as the field the business operates in, how long the business has been running and what percentage of the company has sufficient cash flow to support the loan, and overall health and creditworthiness of the company.
What are the costs?
There are no hidden fees with our business loans, and you’ll know precisely how much you need to pay and at what time, from the very first day. There’s no compounding interest, and no extra fees (as long as you make your payments in time).
We do not charge an Application Fee. You can request a credit loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan earlier?
You can choose to repay all of your loan in full at any time.
If you are deciding to pursue this option, please call our helpful business loans specialists. They’ll provide you with details on repayment and an early payment figure. The figure will be calculated as the total of the principal remaining plus any accrued interest as of the date of early payout and 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
To help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect, use, exchange and secure 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 utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We employ an exceptionally sophisticated bank verification system that allows you to instantly verify your bank account information 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 company owner borrows from an asset they own to get the loan. The asset can be either an individual property, such as the family home, or it could be a business asset such as a truck as well as a piece of machine.
The majority of lending institutions, including the big banks, tend to guarantee loans against an asset. If you’re struggling to pay back the loan then the asset might be taken over by the lender. In essence, it is an opportunity to secure new financing using the value of what you already own.
Do I need security to secure a business loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds, however we do require a personal guarantee. So long as you comply with your loan commitments (as stipulated in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150,000, typically, you will need an individual guarantee and security in the form of the charge of assets.