FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Adelaide Small Business Loans
Let me know what you think of the Adelaide Small Business Loans
Adelaide unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary business loan?
You can apply for this Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and have the funds on your account within 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. Our company loan is a pre-paid loan and you’ll know in advance the total amount due, which includes any fees, interest or charges. This is then broken down into either a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any company reason, such as cash flow management, company improvements, advertising, to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
About Larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can the funding be used for?
A larger company loan can be used to fund almost any company use, including company renovations, to purchase new equipment or inventory as well as for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. This can be done as a result of an charge on assets and can include registering this through the PPSR or registering a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is general in nature, rather than stating security over a particular asset. The person signing the guarantee is personally liable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including objects or assets). The PPSR permits priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
A caveat is a legal document that is filed to provide notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250,000 we may be able to provide an initial pre-approval that will help simplify the process. It is possible to do this without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes you answering a few financial health questions. It’s not an offer or guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could have different terms.
Application process
Can I be eligible for funding?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form within a couple minutes, and a dedicated company credit specialist will call you to help you.
To apply for up $100,000 you’ll need ID details (valid Driver’s Licence), an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer in just one hour if you make your application in standard company time and let us use the advanced bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements , we are able to offer a decision within one company day.
For the Larger Business Loan ($100K or more) we may be in a position to offer you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for 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 quickest way to apply would be to ensure you apply during normal business hours. You can also let us use the advance bank verification to check your bank’s information online. If you decide to send us duplicates of your banking statements , it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we typically offer an answer in just one hour, provided you make your application in standard business times and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statement, we’ll provide the decision within an business day.
For Larger Business Loans ($100K up to $500,000) We may be able to provide you with a conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The fastest method would be to make sure you apply during normal business hours. You can also permit us to use the sophisticated bank verification to instantly confirm your bank details online. If you send us duplicates of your banking accounts, it may 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 certain amount we consider a variety of elements in order to assess what is the well-being that is your company as well as the amount of repayments your business will be able to support. The total amount of your loan will be contingent on the specific circumstances the company.
When you submit an application for a particular amount, we look at a range of aspects to determine how much we can lend you such as well-being for your company and the level of repayments that your company can afford. The amount you receive from the loan will be determined by the particulars the company.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for our business credit, we will assess the risk profile the company and offer you with a tailored proposal that includes the amount of the loan, the duration and interest rates. The company loan is an upfront priced loan therefore you will be aware of the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
The interest rates on company loans rates differ based on various variables like the amount to be that is borrowed, what company assets the money are used to purchase in addition to the industry that the business is operating in, how long the company has been running, how long the company has enough cash flow to pay for the loan, and also the overall health or creditworthiness of the company.
What are the charges?
There aren’t any hidden costs for our business loans, and you’ll know exactly how much it is that you be required to pay, and when, right from the day you sign up. There’s no compounding interest, and no extra fees (as long as you make your payments in time).
We do not charge an application fee. You can make an application for loans with with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay off the loan earlier?
You may choose to pay back the total amount of your loan early at any time.
If you do decide to pursue this option, please speak to our friendly business lending specialists. The specialists will offer you with repayment details and an early payment figure. This is calculated as 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 remaining plus any outstanding fees.
What are the repayment methods?
To ensure you do not miss due dates and also to be in line with your cash flow standard, we offer repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and ensure the security of 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 protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to security for our clients and security. We utilise a sophisticated banking verification system to immediately confirm your bank account information online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses an asset that they own to obtain the loan. The asset can be an individual property, such as the family home or it could be a business asset such as a truck or other piece of machinery.
The vast majority of lenders, not just the major banks, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then the asset could be taken over by the lender. In essence, it’s an opportunity to secure new financing taking advantage of the value of what you already have.
What do I require security for a company loan?
For loans up to $150K no asset security is required in advance to gain access to the funds however, we require a personal guarantee. need the personal guarantee. If you adhere to the loan terms (as detailed in the loan contract) Asset security is not needed. For loans of over $150K generally there is the option of a personal guarantee and security in the form charges on assets.