FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Island Bay Small Business Loans
Let me know about the Island Bay Small Business Loans
Island Bay unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
It is possible to apply to get this Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and the funds could be in your account within 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. This company loan is a cash-based loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, interest or charges. This is then divided into weekly or daily installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business purpose including cash flow management, business improvements, advertising to purchase inventory, new equipment, for general working capital, and much more. The loan is not available for personal reasons.
About larger Island Bay Business Loans
What is the Larger Island Bay Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
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?
To be eligible for a loan in this amount, your company needs to have been operating for at least three years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can the funds be used for?
A Business Loan of a larger size can be used to fund almost all company use, including business renovations, purchase of new equipment or inventory for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This can be done by way of charge over assets, and may be registered in the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a promise to repay a loan which is generally in nature rather than stating the security for a particular asset. The person signing the ensure is personally liable in the event that the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
Caveats are legal form of document to offer the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan of $250,000 or more we can offer an initial pre-approval in order to ease the process. We may be able to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial health questions. This is not an offer or guarantee of financing. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could be subject to different terms.
Do I qualify for funds?
You may be eligible for a company 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 of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in just a few minutes, and an experienced business expert in lending will call you to help you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K or more) we usually offer a response in one hour – as long as you make your application in quality business time and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statement, we’ll provide a decision in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we may be capable of offer you with a conditional pre-approval in about 6 hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Certain agreements have been approved in less than 24 hours.
The fastest way is to ensure you apply during normal company hours. You can also let us use the advanced bank verification system to instantly verify your bank account information online. If you send us copies of your bank statement, it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) We can usually provide a response in one hour if you apply within standard business times and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements, we are able to provide the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be in a position to provide you with a conditional pre-approval in around six hours. Once you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method is to ensure you apply during normal business hours. You can also let us use the modern bank verification link to instantly check your bank’s information online. If you decide to send us duplicates of your banking accounts, it can take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of elements to determine what is the health that is your company as well as the amount of payments your company can support. The total amount of your loan will depend on the specific circumstances that are unique to your company.
If you apply for a certain amount, we take into consideration a variety of factors to assess how much we can lend you such as health of your company and the extent of payments your company is able to afford. The total amount of your loan will be determined by the particulars that are unique to your business.
Fees & repayments
How much should you charge for a business loan?
When you request the business financing, we’ll assess the risk assessment for your business and offer you with a customised proposal that includes the amount of the loan, the duration and the interest rates. The business loan is an upfront-priced loan which means you know the exact amount payable including any costs, fees, or interest rates.
What determines the amount I will be charged?
Interest rates for business loans rates vary due to factors like the amount of money borrowed, the company assets the funds are used to purchase as well as the field the business operates in, how long the company has been in operation as well as what percentage of the business has enough cash flow to support the loan, and also the overall health or creditworthiness of the company.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll know precisely what you be required to pay, and when, right from the first day. There’s no compounding and no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with establishing and managing 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 loan amount.
Do I have the option of paying off the loan early?
You may choose to pay back the entire amount of the loan at any point in time.
If you decide to do this please contact our helpful business credit specialists. They’ll offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal balance and any accrued interest at the time of early payment, plus 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather data, process, exchange and ensure the security of your information is vital and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We utilise a sophisticated bank verification system to immediately verify your bank account details online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner makes use of assets they own to obtain the loan. The asset can be an individual property, such as the family home, or an company property like a truck or other piece of machinery.
The vast majority of lenders, even the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan, then your assets could be offered for sale by the lender. In essence it’s a way of securing additional financing using the value of what you already have.
What do I require security to get a business loan?
For loans of up to $150,000, no asset security is required in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract document) Asset security will never be required. If you take out loans in excess of $150,000 generally, there is an individual guarantee and security in the form the charge of assets.