FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Bangholme Small Business Loans
Let me know about the Bangholme Small Business Loans
Bangholme unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
The application to the Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and have the funds on your account within 24 hours. Traditional company loans reference an interest rate per annum together with additional fees and charges. This company loan is a pre-paid loan which means you know in advance the total amount due, which includes any fees, interest or charges. This is then divided into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company use, including cash flow management, company renovations, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Bangholme Business Loans
What is the Larger Bangholme Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been operating for a minimum of 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost any company use, 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 reasons.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. This is as a result of an charge against assets, and could include registering this in the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a promise to repay a loan which is generally in nature rather than stating the security for 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 reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR permits the priority of personal property granted according to the date a security interest has been registered.
A caveat is a legal form of document to offer the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger company loans that exceeds $250,000 we can offer an initial pre-approval in order to make the process. We may be able to get this done without credit checks and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial well-being checks. It’s not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer you might receive could be on different conditions.
Application process
Can I be eligible for funding?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in just a few minutes, and a dedicated company credit specialist will be in touch to guide you.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent as well as 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) We can usually provide an answer within an hour if you make your application in standard company hours and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements , we’ll be able to offer a decision within just an business day.
For the Larger Business Loan ($100K or more) we may be able to provide you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Some deals have been approved in just 24 hours.
The quickest method is to make sure you apply during normal business hours and allow us to use the advance bank verification to verify your bank account information online. If you decide to upload the copies of bank statements , it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour if you submit your request during standard business hours and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements we can provide an answer in as little as an business day.
For Larger Business Loans ($100K or more) we may be capable of offer you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some offers have been approved within 24 hours.
The quickest method would be to make sure you apply during normal business hours. You can also permit us to use the modern bank verification to confirm your bank details online. If you decide to upload documents from your account accounts, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount, we look at a variety of factors that determine how much we can lend you well-being for your business and the amount of payments your business can afford. The amount you receive from your loan will depend on the particular circumstances for your business.
When you make an application for a specific amount we take into consideration a variety of variables to determine the health for your company and the amount of payments your business can afford. The amount you receive from the loan will be determined by the particular circumstances for your business.
Fees & repayments
What is the cost for an business loan?
If you decide to make an application for one of our company credit, we will assess the risk profile the company and provide you with a customised offer that includes the amount of loan, the term and interest rates. The 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 determines the rate that I will be charged?
The interest rates on company loans rates depend on several factors such as the amount that is that is borrowed, what business assets the money will be used for in addition to the industry that the business operates in, the long the business has been in operation, how long the company has sufficient cash flow to support the loan, and overall health as well as creditworthiness business.
What are the costs?
There are no hidden costs with our business loans, and you’ll know exactly how much you’ll need to pay, and at what time, from the very first day. There’s not any compounding interest and there are no additional charges (as as you make your payments punctually).
We don’t charge an Application Fee. You can make an application for loans with with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You may choose to pay back all of your loan in full at any time.
If you do decide to take this route, please speak to our friendly company credit experts. They will provide you with the details of your repayment and an early payout figure. This is calculated as the total of the principal balance plus any accrued interest as of the time of early payment in addition to 1.5% of the principal balance and any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments that are either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being upfront about the ways we gather information, use it, and exchange it, as well as protect your information, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We use an advanced bank verification system to immediately verify your bank account information online. This allows us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner uses assets they own to make the funds for a loan. The asset could be an individual property, such as the family home or an business asset like a truck as well as a piece of machine.
The majority of banks, not just the big banks, tend to guarantee loans against an asset. If you have trouble paying back the loan then your assets could be offered for sale by the lender. In essence, it is means of securing additional financing taking advantage of the value of what you already own.
Should I require security for an business loan?
For loans of up to $150,000, it is not necessary to secure assets before you can access the money but we require a personal guarantee. require a personal guarantee. As long as you follow your loan commitments (as stated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150,000 generally, there is the option of a personal ensure and security in the form a charge over assets.