FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Bangholme Small Business Loans
Let me know more about Bangholme Small Business Loans
Bangholme unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and funds may be in your account in 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. The business loan is a loan that is priced upfront so you will know ahead of time the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every business use, including managing cash flows, company remodeling, marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal use.
About larger Bangholme Business Loans
What is the Larger Bangholme Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funds be used for?
A Larger Business Loan can be used to fund almost any business need, including company improvements, purchasing new equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. It’s by taking a charge against assets, and could include registration in the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature, rather than stating security over an asset. The person signing the guarantee is personally liable in the event that the company borrower is unable to pay back 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 registered in respect of personal property (including the assets or goods). The PPSR grants preference over private property assigned according to the date a security interest has been registered.
Caveats are legal document filed to offer an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250K we can offer a preliminary pre-approval to help simplify the process. We could be able to do this without a credit check, and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial health questions. This is in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you receive could have different conditions.
The application process
Are I eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a couple minutes, and a dedicated business credit specialist will contact you to help you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months of bank statements.
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 for application including credit consent twelve months of bank records, IRD statement as well as the two most recent years’ financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer within an hour – as long as you apply during quality business hours and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements we can offer the decision within just one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be able to provide you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some agreements have been approved within just 24 hours.
The fastest way is to ensure you apply during standard company hours, and allow us to use our advanced bank verification system link to instantly verify your bank information online. If you send us duplicates of your banking accounts, it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour if you apply within standard business hours and you allow us to use the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statements, we’ll be able to offer an answer within the span of one business day.
If you are applying for Larger Business Loans ($100K and up) We may be likely to provide you with conditional pre-approval within 6 hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this could be shorter based upon the circumstances for each application. Some transactions have received approval within just 24 hours.
The quickest method can be make sure you apply during normal business hours. You can also allow us to use our advanced bank verification system to verify your bank account information online. If you choose to send us duplicates of your banking statements, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we look at a variety of factors in order to assess the health for your business and the level of repayments that your business can afford. The total amount of the loan will be determined by the specifics for your business.
If you apply for a specific amount we take into consideration a variety of elements to determine your health for your business and the level of repayments that your business can afford. The amount you receive from the loan will be determined by the specific circumstances the business.
Fees & repayments
How do you charge for an company loan?
If you decide to apply for the company loan, we will assess the risk assessment for your company and provide you with a customised offer that includes the amount of loan, the term and interest rates. It is a company loan is an upfront priced loan and you’ll be aware of the total amount payable including any interest rates, fees or charges.
What determines the rate that I’m charged?
Business loan interest rates differ based on various factors including the amount borrowed, what business assets the funds will be used for and the sector the company operates in, how long the business has been operating for, whether the business has enough cash flow to fund the loan, and overall health as well as creditworthiness business.
What are the fees?
There are no hidden fees for our business loans. You’ll know precisely what you be required to pay, and when, starting from the day you sign up. There’s no compounding and no extra fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can request a credit loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan in advance?
You can decide to repay all of your loan in full at any time.
If you do decide to do this please talk to one of our helpful company loans experts. They’ll provide you with the details of your repayment as well as an early payout amount. The figure will be calculated as the total of the principal amount remaining and accrued interest to the time of the early payout and 1.5 percent of the principal balance and any fees that remain unpaid.
How do repayments work?
To ensure you do not miss payment dates and to align with your cash flow standard, we offer repayments 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 knowing how we collect information, use it, and exchange it, as well as secure your information, is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to security for our customers and security. We employ a highly sophisticated bank verification system that allows you to instantly confirm your bank account information online, allowing us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a business owner makes use of the assets they have to obtain the loan. The asset can be either an individual property, such as the family home, or it could be a company asset such as a truck or piece or equipment.
The vast majority of lending institutions, including the big banks, tend to guarantee loans against assets. If you’re having trouble paying back the loan, your assets could be offered for sale by the lender. In essence it is means of securing new funding using the value of what you already own.
What do I require security to get a company loan?
Up to $150K in loans there is no requirement for asset security prior to the loan’s access However, we require a personal guarantee. need the personal guarantee. As long as you follow your loan obligations (as specified in the loan contract) and you are able to meet your obligations, asset security is not required. For loans of over $150,000 generally, there is personal guarantee and security that is in the form charges on assets.