FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Brooklyn Small Business Loans
Let me know what you think of the Brooklyn Small Business Loans
Brooklyn unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
You can apply to the Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the money could be on your account within 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. We offer a business loan is a cash-based loan so you will be aware in advance of the total amount due, which includes the interest, fees and charges. Then, it is broken down into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company use, including managing cash flows, company remodels and marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used to fund personal expenses.
About the Larger Brooklyn Business Loans
What is the Larger Brooklyn Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your company needs to be in operation for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can the funding be used for?
A larger business loan can be used for nearly all business need, including business improvements, purchasing new equipment or inventory, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This can be done by way of charge on assets, which could also include registration in the PPSR or making as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally in nature rather than stating security over a particular asset. The person signing the guarantee is personally accountable if the company lender is not able to repay 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 registered in respect of personal property (including items or assets). The PPSR allows priority over personal property to be assigned according to the date a registration of a security interest.
An affidavit is an official document filed to offer the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking larger company loans that exceeds $250K we may be able to provide a preliminary pre-approval to help make the process. We might be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering some financial well-being checks. It’s neither an offer nor a guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could have different terms.
Do I qualify for funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in just a few minutes, and an experienced company credit specialist will call you to assist you.
To apply 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.
For larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent twelve month bank accounts, the IRD statements, last 2 years finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour – as long as you apply at quality company hours and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statements , we are able to provide the decision within an company day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some transactions have received approval in less than 24 hours.
The quickest method is to make sure you apply during normal business hours. Also, allow us to use our advance bank verification to instantly confirm your bank details online. If you opt to upload documents from your account statements , it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour if you apply within normal business times and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements, we are able to offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be capable of offer the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The fastest way can be make sure you apply during normal business hours and permit us to use the modern bank verification to verify your bank account information online. If you upload the copies of bank statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a specific amount we look at a variety of elements to determine your health that is your company and the amount of payments your business can afford. The total amount of the loan will be determined by the specifics of your business.
If you apply for a specific amount we will consider a number of elements to assess your health that is your business and the level of repayments your company is able to afford. The total amount of the loan will be determined by the particulars that are unique to your company.
Fees & repayments
What is the cost for a business loan?
When you request business loans with us company loans, we’ll assess the risk assessment of your company and provide you with a customised offer, including the amount of the loan, the duration and interest rates. The company loan is a loan that is priced upfront and you’ll know in advance the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I pay?
Business loan interest rates depend on a variety of factors including the amount of money borrowed, the company assets the funds are used to purchase, the industry the business is in, how long the company is in operation for, how long the company has sufficient cash flow to fund the loan, as well as the overall health as well as creditworthiness business.
What are the charges?
There are no hidden costs with our business loans. You’ll be aware of the amount you’ll need to pay, and when, starting from the very first day. There’s no compounding interest and no extra fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You are able to request a credit loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged 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 early?
You may choose to pay back all of your advance loan at any time.
If you do decide to pursue this option, please contact our helpful company loan experts. They will offer you with details on repayment as well as an early payout amount. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the time of early payment, plus 1.5% of the remaining principal and any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss repayments and to fit in with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing the ways we gather data, process, exchange and protect your information, is crucial and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system link to instantly verify the bank account details online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from an asset that they own to make the funding. The asset could be an individual asset, such as the family home, or an company asset like a truck or piece or equipment.
The majority of the lenders not just the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then the asset might be taken over by the lender. In essence it is a way of securing new financing by taking advantage of the value of what you already own.
Do I require security to get a company loan?
For loans of up to $150,000, there is no requirement for asset security in advance to gain access to the funds however, we require a personal guarantee. need a personal guarantee. So long as you comply with the loan terms (as stated in your loan contract document), asset security will never be required. For loans of over $150K generally, there is the option of a personal ensure and security that is in the form charges on assets.