FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Banksia Park Small Business Loans
Let me know how you are able to avail the Banksia Park Small Business Loans
Banksia Park unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from an ordinary business loan?
The application to the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and have the funds available in just 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. This business loan is a cash-based loan and you’ll be aware in advance of the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business purpose including control of cash flow business improvements, advertising to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available for personal reasons.
About larger Banksia Park Business Loans
What is the Larger Banksia Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan of this size the business needs to be in operation for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be utilised?
A large business loan can be used for nearly every business need, including company improvements, purchasing new equipment or inventory for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This is by way of charge against assets, and could include the registration of this in the PPSR or registering a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally based rather than defining the security of a specific asset. The person who signs the ensure is personally liable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR permits the priority of personal property granted depending on the date that a security interest that is registered.
The caveat can be described as a formal document that is filed to offer the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
When you’re applying for a Larger Business Loan of $250K or more we may be able to provide a preliminary pre-approval to help simplify the process. We may be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial health checks. It’s neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could be on different conditions.
The application process
Do I qualify for funds?
You may be eligible for an business 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)
- you must demonstrate at minimum 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a few minutes and a dedicated company loan specialist will call you to assist you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour if you apply within quality company hours and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements we can provide the decision in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be likely to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some deals have been approved in just 24 hours.
The quickest way to apply would be to ensure you apply during standard business hours. Also, allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload duplicates of your banking statements it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide a response in one hour – provided you make your application within normal business hours and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements, we are able to provide an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be likely to 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 particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The fastest method can be ensure you apply during normal business hours. You can also allow us to use our advanced bank verification system link to instantly check your bank’s information online. If you choose to send us documents from your account statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a certain amount, we take into consideration a range of factors in order to assess your health of the business as well as the amount of payments your business will be able to support. The total amount of the loan will be determined by the specific circumstances for your company.
When you make an application for a set amount, we look at a range of variables to determine your health of your business and the level of payments your business will be able to support. The total amount of your loan will be determined by the particulars for your company.
Fees & repayments
What is the cost for an company loan?
If you decide to make an application for business loans with us company loans, we will assess the risk profile for your business and provide you with a customised offer including the loan amount, the terms and interest rates. This company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I am charged?
Interest rates for company loans rates depend on several variables like the amount to be that is borrowed, what company assets the funds are used to purchase in addition to the industry that the business operates in, the long the business has been operating and how long the company has sufficient cash flow to support the loan, and also the general health or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much it is that you be required to pay, and at what time, from the day you sign up. There’s no compounding and there are no additional charges (as as you make your payments punctually).
We do not charge an application fee. You are able to make an application for loans without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5% 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 your loan in full at any time.
If you do decide to do this please speak to our friendly company credit experts. They will provide you with details for repayment and an early payment figure. It will be calculated using the sum of the remaining principal amount and accrued interest to the time of early payment, plus 1.5% of the remaining principal and any outstanding fees.
What are the repayment methods?
To help you avoid missing due dates and also to be in line with your cash flow general, we offer repayments that are either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about how we collect, use, exchange and ensure the security of your information is crucial and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We employ a highly sophisticated bank verification system that allows you to instantly verify your bank account information online so we can provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner makes use of an asset that they own to get a loan. The asset can be either an individual property, such as the family home or it could be a company asset like a truck or other piece of machinery.
The majority of lenders, including the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, then the asset could be transferred to the lender. In essence it’s a way of securing additional financing using the value of what you already have.
What do I need security to get a company loan?
For loans up to $150,000 there is no requirement for asset security in advance to gain access to the funds, however we do need a personal guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract) Asset security will never be required. If you take out loans in excess of $150,000 generally, there is a personal guarantee and security in the form an asset charge.