FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Adelaide Small Business Loans
Tell me what you think of the Adelaide Small Business Loans
Adelaide unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an ordinary company loan?
Apply for your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and the money could be on your account within 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. The company loan is a pre-paid loan and you’ll know ahead of time the total amount due, which includes any interest, fees or charges. Then, it is broken down into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company purpose including cash flow management, company improvements, advertising, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
Concerning Larger Adelaide Business Loans
What is the Larger Adelaide 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 with a maximum of 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
It is important to note that the 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?
In order to be eligible for a loan in this amount, your business needs to be operating for at least three years and generate an annual revenue of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funds be utilised?
A larger company loan can be used for almost every business need, including business renovations, to purchase inventory or new equipment as well as for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. It’s by taking a charge over assets, which could also be registered in the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is generally based rather than defining security over an asset. The person who is signing the guarantee is personally liable in the event that the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be granted according to the date the registration of a security interest.
An affidavit is an official document filed to provide the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250,000 we may be able to provide a preliminary pre-approval to help ease the process. It is possible to get this done without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial health checks. It is not an offer of credit or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you might receive could be subject to different conditions.
The application process
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 over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a few minutes and a dedicated business expert in lending will be in touch to assist you.
To apply for up $100,000 you’ll need identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent and 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually provide a response in one hour, provided you submit your request at quality business time and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements we can provide the decision in just 1 business day.
For the Larger Business Loan ($100K to $500K) we may be able to provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be quicker based on the specifics of each application. Certain transactions have received approval within less than 24 hours.
The fastest way can be make sure you apply during standard business hours, and allow us to use our advance bank verification link to verify your bank account information online. If you send us documents from your account statements , it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within one hour – as long as you make your application within standard business hours and you allow us to use the bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements, we will be able to offer an answer within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be in a position to provide you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Certain deals have been approved in 24 hours.
The fastest way is to ensure you apply during normal business hours, and let us use the modern bank verification link to confirm your bank details online. If you opt to upload the copies of bank statements, it takes a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a particular amount, we will consider a number of aspects to determine your well-being of your business as well as the amount of repayments that your company can afford. The total amount of the loan will be determined by the specifics of your company.
When you make an application for a specific amount we consider a variety of elements to determine how much we can lend you such as well-being for your company and the level of repayments that your business will be able to support. The total amount of your loan will depend on the specific circumstances that are unique to your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to request one of our business financing, we will assess the risk assessment the business and offer you with a customised offer that includes the amount of loan, the term and interest rates. This company loan is an upfront priced loan which means you know in advance the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I pay?
Interest rates for company loans rates vary due to factors such as the amount that is of money borrowed, the business assets the funds are used to purchase as well as the field the business is in, how long the company has been in operation for, how long the business has sufficient cash flow to cover the loan, as well as the general health or financial standing of the business.
What are the charges?
There are no hidden fees with our company loans, and you’ll be aware of the amount you need to pay, and when, right from the day you sign up. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to make an application for loans 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 choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Do I have the option of paying off the loan early?
You may choose to pay back the entire amount of your loan early at any time.
If you choose to take this route, please speak to our friendly business loan professionals. They will provide you with the details of your repayment along with an early payout estimate. The figure will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payment in addition to 1.5% of the principal remaining plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align your cash flow schedule, we provide repayments either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing the ways we gather the information we collect, use, share and protect your information, is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to customer security and privacy. We make use of an advanced bank verification system to immediately verify your bank account details online. This allows us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an company owner borrows from assets they own to get a loan. The asset can be either an individual asset, such as the family home, or an company asset like a truck or other piece of machinery.
The majority of lending institutions, not just the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, then the asset could be offered for sale by the lender. In essence, it is an opportunity to secure new financing taking advantage of the value of what you already have.
What do I require security for an company loan?
For loans that exceed $150K, the requirement for asset security is not required upfront to access the money However, we do require the personal guarantee. If you adhere to the terms of your loan (as stated in your loan contract document), asset security is not needed. For loans that exceed $150K, generally there is a personal ensure and security in the form of an asset charge.
