FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Blackwood Small Business Loans
Let me know what you think of the Blackwood Small Business Loans
Blackwood unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
Apply to the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and funds may be available in just 24 hours. Traditional company loans are based on an annual interest rate together with additional fees and charges. We offer a business loan is a pre-paid loan and you’ll be aware in advance of the total amount to be paid, including the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company use, including managing cash flows, company remodeling, marketing to purchase inventory, new equipment, for general working capital and so much more. The loan is not available for personal use.
About Larger Blackwood Business Loans
What is the Larger Blackwood Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth 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 you cashflow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to be in operation for at least 3 years, and have an annual income of $700K. Your company must belong to 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 funding for?
A large business loan is a great option for almost all company reason, such as company renovations, to purchase equipment or inventory for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. This is as a result of an charge over assets and can be registered on the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally accountable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be assigned according to the date a security interest has been registered.
An affidavit is an official form of document to offer an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval that will help smooth out the process. We may be able to get this done without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being checks. This is neither an offer nor a guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer that you are offered could be subject to different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in just a few minutes, and an experienced business loan specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer in just one hour – as long as you make your application in quality company timings and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statement, we’ll offer an answer within just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we could be in a position to provide you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The most efficient method would be to ensure you apply during normal business hours. You can also let us use the modern bank verification to check your bank’s information online. If you opt to send us the copies of bank statements , it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) We can usually provide an answer within an hour, provided you submit your request within standard business times and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statements we can offer an answer in as little as 1 business day.
For Larger Business Loans ($100K up to $500,000) We may be likely to provide you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Some deals have been approved within 24 hours.
The fastest method is to make sure you apply during normal business hours. Also, allow us to use our sophisticated bank verification to check your bank’s information online. If you choose to upload duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount, we look at a variety of variables to determine how much we can lend you well-being of the business as well as the amount of payments your business is able to afford. The amount you receive from your loan will depend on the particular circumstances of your company.
When you submit an application for a certain amount, we consider a variety of variables to assess the health for your company and the amount of repayments that your company can support. The amount you receive from the loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much should you charge for a company loan?
If you decide to make an application for the business financing, we will assess the risk assessment the business and provide you with a tailored offer that includes the amount of the loan, the duration and interest rates. A company loan is an upfront-priced loan so you will be aware of the total amount you will have to pay, including charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for business loans rates differ based on various factors such as the amount that is borrowed, the business assets the money are used to purchase as well as the field the business is operating in, how long the business is in operation as well as in the event that the business has enough cash flow to support the loan, and also the overall health or creditworthiness of the company.
What are the costs?
There aren’t any hidden costs for our company loans. You’ll know precisely what you need to pay and at what time, from day one. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments on time).
We do not charge an Application Fee. You are able to make an application for loans with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the total amount of your advance loan at any time.
If you are deciding to do this please contact our helpful business lending specialists. We will provide you with details on repayment and an early payout figure. This will be calculated as the sum of the remaining principal amount and accrued interest to the time of early payment, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing payment dates and to align with your cash flow standard, we provide payments that are either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing the ways we gather data, process, exchange and safeguard your data, is of huge importance 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 protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We utilise a sophisticated banking verification system to immediately verify your bank account information online. This allows us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner borrows from an asset that they own to make the funds for a loan. The asset can be an individual asset, such as the family home or an business asset such as a truck as well as a piece of machine.
The vast majority of banks, including the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, then your assets could be transferred to the lender. In essence it’s the process of securing new funding using the worth of the asset you already have.
Are I need security to get a business loan?
For loans of up to $150K, the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need a personal guarantee. In the event that you fulfill the terms of your loan (as detailed in your loan contract document) Asset security is not required. For loans over $150K typically, you will need personal guarantee and security in the form a charge over assets.