FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Beaconsfield Small Business Loans
Tell me what you think of the Beaconsfield Small Business Loans
Beaconsfield unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from the traditional business loan?
You can apply to the Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and the money could be on your account within 24 hours. Traditional business loans are based on an interest rate per annum as well as other fees and charges. The business loan is an upfront priced loan which means you know in advance the total amount due, which includes any interest, fees or charges. Then, it is broken down into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any company purpose including managing cash flows, business remodels and marketing to purchase inventory, new equipment, or as general working capital and much more. The loan is not available for personal purposes.
About Larger Beaconsfield Business Loans
What is the Larger Beaconsfield Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been operating for at least three years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost every company reason, such as company remodeling, buying equipment or inventory or as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It’s by taking a charge on assets and can include registering this on the PPSR or filing a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally based rather than stipulating security over a particular asset. The person who signs the ensure is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central 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 grants prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
The caveat can be described as a formal document that is filed to provide notice of a legal claim to property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan of more than $250,000 we can offer a preliminary pre-approval to help smooth out the process. It is possible to make this decision without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health questions. It is not an offer or guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you receive could be based on different terms.
Application process
Do I qualify for funds?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a few minutes and a dedicated business lending specialist will call you to assist you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent twelve months of bank statements, IRD statements as well as the two most recent years’ financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we can often offer an answer in just one hour if you submit your request at standard business timings and permit us to utilise the bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statement, we’ll provide an answer within just one business day.
For Larger Business Loans ($100K to $500K) we might be in a position to provide you with conditional pre-approval in about 6 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 could be shorter based on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The most effective method would be to ensure you apply during standard company hours. You can also permit us to use the advanced bank verification system link to instantly check your bank’s information online. If you decide to upload copies of your bank statements , it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K or more) We can usually provide an answer within one hour – as long as you submit your request within standard business hours and allow us to use the bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can provide an answer in as little as 1 business day.
For Larger Business Loans ($100K and up) we could be likely to provide you with conditional pre-approval in about 6 hours. Once 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 less than 24 hours.
The most efficient method can be ensure you apply during normal business hours, and allow us to use the advanced bank verification system to verify your bank account information online. If you upload copies of your bank accounts, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of variables in order to assess your health for your business as well as the amount of repayments your company can support. The amount you receive from the loan will be determined by the specifics for your business.
When you apply for a particular amount, we look at a range of factors to assess your health for your business and the extent of repayments that your business can afford. The amount you receive from your loan will depend on the specifics of your company.
Fees & repayments
What is the cost for the cost of a business loan?
When you apply for the company loan, we will assess the risk assessment that you have for your business and provide you with a customised proposal that includes the amount of the loan, the duration and the interest rates. This business loan is an upfront priced loan and you’ll know the exact amount payable including any charges, interest rates or fees.
What is the factor that determines the price I am charged?
Interest rates for company loans rates differ based on various factors such as the amount that is borrowed, the business assets the money are used to purchase, the industry the company operates in, the long the company has been running and in the event that the company has enough cash flow to support the loan, and overall well-being or creditworthiness of the company.
What are the fees?
There are no hidden fees with our business loans, and you’ll know exactly how much it is that you be required to pay and at what time, from the first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay off the loan in advance?
You can repay the entire amount of your loan at any point in time.
If you are deciding to take this route, please talk to one of our helpful company loan professionals. The specialists will offer you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payment and 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payment dates and to align with your cash flow general, we provide payments that are either daily or weekly. They are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being transparent about the ways we gather information, use it, and exchange it, as well as protect your information, is of paramount importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We employ an exceptionally sophisticated bank verification system that allows you to immediately verify your bank account information online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the business owner makes use of assets they own to make the loan. The asset may be an asset belonging to the personal, like the family home, or a business asset such as a truck or piece or equipment.
The vast majority of banks, including the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan, then the asset might be transferred to the lender. In essence, it’s a way of securing additional financing using the worth of the asset you already have.
Are I need security to secure an company loan?
For loans of up to $150,000, no asset security is required before you are able to access the money however, we do require a personal guarantee. So long as you comply with the terms of your loan (as detailed in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally there is personal guarantee and security that is in the form an asset charge.