FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Buckland Small Business Loans
Let me know more about Buckland Small Business Loans
Buckland unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from a traditional business loan?
Apply to this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and funds may be in your account in 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. Our company loan is a pre-paid loan so you will know ahead of time the total amount due, which includes any interest, fees or charges. This is then broken down into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business purpose including managing cash flows, company remodeling, marketing to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal use.
About the Larger Buckland Business Loans
What is the Larger Buckland Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
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?
To be eligible for a loan of this size, your business needs to have been in operation for at least 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be used for?
A larger business loan is a great option for almost any business use, including business renovations, to purchase inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This can be done by taking a charge on assets and can include registering this with the PPSR or making a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally based rather than specifying security over a particular asset. The person who is signing the guarantee is personally liable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be granted according to the date a registration of a security interest.
The caveat can be described as a formal form of document to offer the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger company loans of $250K or more, we may offer an initial pre-approval to make the process. We may be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes answering a couple of financial well-being checks. It’s not an offer or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer you may receive may be on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a couple minutes, and a dedicated business loan specialist will be in touch to assist you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Application details including credit consent, 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, as well as interim financial statements for the current 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 and up) we can often provide a response in one hour if you make your application during standard company hours and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements we can provide a decision in just one business day.
For Larger Business Loans ($100K up to $500,000) we may be capable of offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some agreements have been approved in less than 24 hours.
The fastest way can be ensure you apply during standard business hours, and allow us to use our modern bank verification to check your bank’s information online. If you opt to upload documents from your account accounts, it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer in just one hour, provided you make your application at normal business time and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your banking statement, we’ll offer a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be likely to offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be faster depending on the specifics of each application. Some transactions have received approval within 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, allow us to use the advance bank verification link to verify your bank information online. If you send us copies of your bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a specific amount we will consider a number of factors in order to assess the health of the business and the amount of repayments your company can afford. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
When you submit an application for a set amount, we consider a variety of aspects to determine how much we can lend you such as health for your company and the level of repayments your business is able to afford. The amount you receive from your loan will be contingent on the particulars the business.
Fees & repayments
How much should you charge for the cost of a business loan?
When you apply for our company loan, we’ll assess the risk assessment of your company and provide you with a tailored offer including the amount of loan, the term and the interest rates. The company loan is an upfront priced loan which means you know the exact amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I will be charged?
Business loan interest rates differ based on various variables like the amount to be borrowed, the business assets the funds are used to purchase and the sector the company operates in, how long the business has been in operation and what percentage of the business has sufficient cash flow to cover the loan, as well as the general well-being as well as creditworthiness company.
What are the cost?
There are no hidden costs with our company loans. You’ll know precisely how much it is that you be required to pay and when, starting from the first day. There’s no compounding and there are no additional charges (as as you make your payments punctually).
We don’t charge an application fee. You are able to request a credit loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay all of your loan early at any time.
If you decide to pursue this option, please talk to one of our helpful business loans professionals. We will offer you with the details of your repayment and an early payment figure. The figure will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payment, plus 1.5 percent of the principal remaining plus any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss repayments and to fit in with your cash flow cycle 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?
Security of your data, and being clear about the ways we gather, use, exchange and secure your information, is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We make use of an advanced bank verification system to immediately verify the bank account details online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an company owner utilises an asset that they own to make the loan. The asset may be an individual asset, such as the family home or an company asset such as a vehicle as well as a piece of machine.
The vast majority of lending institutions, even the big banks, tend to make loans secured by an asset. If you have trouble paying back the loan then the asset could be transferred to the lender. In essence it is an opportunity to secure new financing by using the value of what you already have.
What do I require security for an business loan?
For loans of up to $150,000, there is no requirement for asset security upfront to access the money but we require a personal guarantee. need the personal guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract) the security of assets will never be required. For loans over $150,000 generally, you can get personal guarantee and security is provided in the form of an asset charge.