FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Birkenhead Small Business Loans
Tell me what you think of the Birkenhead Small Business Loans
Birkenhead unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
The application for this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and have the funds available in just 24 hours. Traditional company loans have an annual interest rate along with other charges and fees. Our business loan is a loan that is priced upfront therefore you’ll be aware of the total amount payable including any interest, fees or charges. This is then divided into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company purpose including cash flow management, business improvements, advertising to purchase inventory, new equipment, as general working capital and much more. The loan is not available for personal purposes.
About larger Birkenhead Business Loans
What is the Larger Birkenhead Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5% 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 trading for at least 3 years and have an annual turnover of $700K. The applicant must also 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 least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly all business reason, such as business renovations, to purchase 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 necessary for accessing funds over $150,000. This is in the form of a charge over assets, and could include registering this through the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature rather than defining security over an asset. The person who signs the guarantee is personally responsible if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR allows preference over private property granted according to the date the registration of a security interest.
Caveats are legal form of document to provide the legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250K we can offer an initial pre-approval to make the process. We could be able to get this done without a credit check, and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial well-being questions. It is not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you receive could be subject to different terms.
The application process
Are I eligible for funding?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in just a few minutes, and an experienced business loan specialist will contact you to assist you.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $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, plus interim financial statements for the current year as well as Aged Payables and Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within one hour, provided you make your application during quality company hours and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements we can provide the decision in just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we might be able to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain agreements have been approved in the space of 24 hours.
The most effective method is to make sure you apply during standard business hours. Also, allow us to use our advance bank verification to instantly verify your bank account information online. If you send us documents from your account statement, it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we usually provide an answer within an hour – as long as you submit your request within standard business time and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statement, we’ll offer an answer in as little as one business day.
For Larger Business Loans ($100K up to $500,000) we could be capable of provide you with conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Some transactions have received approval within the space of 24 hours.
The fastest method is to make sure you apply during standard business hours, and allow us to use the sophisticated bank verification link to instantly check your bank’s information online. If you decide to send us documents from your account statement, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a specific amount we will consider a number of aspects in order to assess your health of your business as well as the amount of repayments that your company can support. The total amount of your loan will be contingent on the specifics for your company.
When you submit an application for a specific amount we consider a variety of variables to determine the well-being of your business and the extent of payments your business will be able to support. The total amount of your loan will be determined by the specifics of your business.
Fees & repayments
What is the cost for an company loan?
When you make an application for one of our company financing, we will assess the risk assessment the company and provide you with a customised offer that includes the loan amount, the terms and the interest rates. This business loan is an upfront-priced loan so you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on a variety of factors including the amount that is borrowed, what company assets the money are used to purchase as well as the field the business operates in, how long the company has been operating and whether the business has sufficient cash flow to fund the loan, and general well-being or financial standing of the company.
What are the charges?
There are no hidden costs with our company loans. You’ll know exactly how much you’ll need to pay, and when, from day one. There’s not any compounding interest and no extra fees (as long as you make your payments in time).
We do not charge an application fee. You are able to get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan in advance?
You can decide to repay the entire amount of your loan early at any time.
If you do decide to take this route, please talk to one of our helpful company credit professionals. We will offer you with the details of your repayment as well as an early payout amount. This is calculated as the sum of the principal remaining and any accrued interest at the date of early payout plus 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
To ensure that you don’t miss repayments and to fit in with your cash flow routine, we provide payments that are either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear how we collect data, process, exchange and protect your information, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We make use of an advanced bank verification system link to immediately confirm your bank account information online so we can provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from an asset they own to secure the loan. The asset may be an asset belonging to the personal, like the family home or a company property like a truck as well as a piece of machine.
The majority of banks, including the largest banks, are inclined to guarantee loans against assets. If you have trouble paying back the loan, the asset could be sold by the lender. In essence, it’s a way of securing additional financing making use of the value of what you already own.
Do I require security to get an company loan?
For loans up to $150K there is no requirement for asset security prior to the loan’s access but we require a personal guarantee. need the personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150,000, generally, you can get an individual ensure and security in the form of a charge over assets.