FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Beverley Small Business Loans
Let me know how you can avail the Beverley Small Business Loans
Beverley unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from the traditional company loan?
The application to the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and the funds could be in your account in 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. This business loan is a loan that is priced upfront and you’ll know in advance the amount you will have to pay, including any interest, fees or charges. This is then broken down into either weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company purpose including control of cash flow business renovations, marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal use.
About Larger Beverley Business Loans
What is the Larger Beverley Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to be operating for a minimum of 3 years with an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A larger company loan can be used to fund almost all company use, including business improvements, purchasing new equipment or inventory for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This can be done in the form of a charge on assets, which could also include registration on the PPSR or registering as a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is generally in nature rather than defining security over an asset. The person who signs the ensure is personally responsible if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including the assets or goods). The PPSR gives priority over personal property to be granted in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal document that is filed to offer the legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval in order to simplify the process. We could be able to do this without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial health checks. This is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer you may receive may be based on different terms.
The application process
Do I have the right to receive 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)
- can demonstrate at least 6 months’ worth of transactions (for for the 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 easy. Just fill out the online application in few minutes and an experienced company lending specialist will call you to assist you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) and a valid NZBN/IRD as well as at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank records, IRD statement, last 2 years finalised financial statements, in addition to interim financial statements for the current year, Aged Payables and Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we typically offer an answer within one hour if you make your application at quality business timings and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can offer an answer in just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some transactions have received approval within the space of 24 hours.
The fastest way is to ensure you apply during normal company hours. Also, permit us to use the advanced bank verification system link to verify your bank information online. If you decide to upload documents from your account statements , it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within an hour – provided you make your application in standard business timings and permit us to use the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statement, we’ll provide a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be likely to offer the conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be faster depending upon the circumstances for each application. Some deals have been approved in 24 hours.
The quickest method would be to make sure you apply during normal business hours. You can also allow us to use our advance bank verification to confirm your bank details online. If you choose to send us duplicates of your banking statement, it will take a little longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a particular amount, we will consider a number of variables to determine what is the well-being of your business and the amount of payments your business will be able to support. The total amount of your loan will be contingent on the particular circumstances that are unique to your company.
When you submit an application for a specific amount we consider a variety of elements to determine your health for your business and the level of payments your company will be able to support. The amount you receive from your loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for a business loan?
When you apply for one of our company credit, we’ll assess the risk assessment the business and provide you with a customised offer, including the amount of the loan, the duration and the interest rates. The company loan is an upfront-priced loan which means you be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I’m charged?
The interest rates on business loans rates depend on several factors such as the amount that is of money borrowed, the business assets the money are used to purchase, the industry the business is in, how long the business has been running and what percentage of the company has enough cash flow to support the loan, and the overall well-being and creditworthiness of the company.
What are the fees?
There aren’t any hidden charges for our business loans. You’ll be aware of the amount it is that you be required to pay, and when, starting from day one. There’s no compounding interest, and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You can apply for a loan with without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated in 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% of the loan amount.
Can I repay the loan in advance?
You can repay all of your loan at any point in time.
If you decide to pursue this option, please call our helpful company loans specialists. They will offer you with repayment details along with an early payout estimate. The figure will be calculated as the total of the principal remaining and any accrued interest at the time of early payment plus 1.5 percent of the principal amount remaining plus any outstanding fees.
How do repayments work?
To make sure you do not miss payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing the ways we gather data, process, exchange and secure your information, is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We utilise a sophisticated banking verification system to immediately verify the bank account details online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner utilises an asset they own to obtain the funds for a loan. The asset can be an individual property, such as the family home, or it could be a business asset such as a vehicle or piece or equipment.
The majority of the lenders not just the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan, the asset could be offered for sale by the lender. In essence it is means of securing new financing by using the worth of the asset you already have.
Should I need security to secure a business loan?
For loans that exceed $150K, it is not necessary to secure assets in advance to gain access to the funds, however we require a personal guarantee. require the personal guarantee. As long as you follow your loan commitments (as detailed in the loan contract) the security of assets is not needed. For loans that exceed $150,000, generally, you are able to get personal guarantee and security is provided in the form of a charge over assets.