FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Brown Owl Small Business Loans
Tell me more about Brown Owl Small Business Loans
Brown Owl unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
It is possible to apply to this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and the funds could be on your account within 24 hours. Traditional business loans refer to an annual interest rate along with other charges and fees. Our business loan is a pre-paid loan which means you be aware of the total amount payable including any fees, charges or charges. Then, it is broken down into either a daily or weekly installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company use, including managing cash flows, business renovations, marketing to purchase inventory, new equipment, for general working capital, and much more. The loan is not available for personal use.
About larger Brown Owl Business Loans
What is the Larger Brown Owl Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the business needs to be in operation for at least 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and 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 Larger Business Loan is a great option for almost every company reason, such as company renovations, purchase of equipment or inventory for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This can be done by taking a charge over assets and can include registering this on the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally in nature rather than stipulating security over a particular asset. The person signing the guarantee is personally responsible if the company borrower is unable to pay back 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 items or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date a security interest has been registered.
Caveats are legal form of document to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan of $250K or more we may be able to provide an initial pre-approval to smooth out the process. We may be able to get this done without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial health questions. It’s neither an offer nor a guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be on different conditions.
Do I have the right to receive funds?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and a dedicated company loan specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$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-$500K: Application details including credit consent, 12 months of bank statements, IRD statements, last 2 years finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within one hour – as long as you apply at quality business hours and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we are able to provide the decision in as little as an company day.
For Larger Business Loans ($100K and up) we may be capable of offer the conditional pre-approval within about 6 hours. After you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved in just 24 hours.
The fastest way is to ensure you apply during standard business hours and let us use the advanced bank verification system link to verify your bank account information online. If you opt to upload documents from your account accounts, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer in just one hour – as long as you apply within standard business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements, we’ll be able to provide an answer in just the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be capable of provide you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Some offers have been approved in less than 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours, and permit us to use the advance bank verification to instantly confirm your bank details online. If you decide to send us the copies of bank accounts, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a specific amount we will consider a number of aspects that determine the well-being for your company and the level of repayments that your company can support. The amount you receive from the loan will be determined by the specific circumstances of your company.
If you apply for a set amount, we look at a range of aspects to determine how much we can lend you such as well-being of your business and the extent of repayments your company can support. The amount you receive from your loan will depend on the particulars for your company.
Fees & repayments
How do you charge for the cost of a company loan?
When you make an application for the business loans, we will assess the risk assessment of your company and offer you with a customised proposal that includes the amount of loan, the term and the interest rates. This company loan is a loan that is priced upfront which means you know the exact amount payable including any interest rates, fees or charges.
What determines the rate that I’m charged?
Interest rates for company loans rates depend on a variety of variables like the amount to be borrowed, the business assets the money will be used for in addition to the industry that the company is operating in, how long the business has been operating for, in the event that the company has sufficient cash flow to cover the loan, and overall health or financial standing of the company.
What are the cost?
There are no hidden fees with our company loans, and you’ll know precisely how much you be required to pay and at what time, from the day you sign up. There’s no compounding interest, and no additional fees (as as you make your payments on time).
We do not charge an Application Fee. You can apply for a loan with without any upfront costs or any obligation to sign up.
The Origination Fee is the cost associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can decide to repay the total amount of your loan at any point in time.
If you are deciding to take this route, please talk to one of our helpful company loans specialists. They’ll offer you with repayment details and an early payment figure. It will be calculated using the total of the remaining principal amount plus any accrued interest as of the time of early payment in addition to 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in with your cash flow routine, we provide payments that are either daily or weekly. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear how we collect, use, exchange and ensure the security of your information is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We use an advanced bank verification system link to instantly verify your bank account information online so we can provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner utilises assets they own to secure a loan. The asset may be an asset belonging to the personal, like the family home or it could be a company asset like a truck or piece or equipment.
The vast majority of lending institutions, including the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan, your assets could be offered for sale by the lender. In essence, it is a way of securing new funding taking advantage of the value of what you already own.
Do I require security for a company loan?
For loans up to $150,000 no asset security is required before you can access the money but we require a personal guarantee. need an individual guarantee. As long as you follow your loan commitments (as stipulated in your loan contract) the security of assets will never be required. For loans of over $150,000 generally there is an individual ensure and security in the form the charge of assets.