FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Berwick Small Business Loans
Let me know more about Berwick Small Business Loans
Berwick unsecured loans provides amounts of between $5,000 and $100,000 with terms 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 business loan?
It is possible to apply for your Small Business Loan in under 10 minutes over the phone, receive a same day response and the money could be on your account within 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. Our company loan is an upfront priced loan which means you know ahead of time the total amount to be paid, including any fees, charges or charges. Then, it is broken down into weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business reason, such as managing cash flows, business remodeling, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Berwick Business Loans
What is the Larger Berwick Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to be in operation for at least 3 years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan is a great option for almost every company purpose including company renovations, to purchase equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It is usually in the form of a charge over assets, and could be registered through the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally based rather than defining the security of a specific asset. The person who signs the ensure is personally responsible if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted depending on the date that a registration of a security interest.
An affidavit is an official document filed to offer notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan of $250K or more it is possible to offer a preliminary pre-approval to help simplify the process. We might be able to apply for this without a credit verification and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial well-being questions. This is in no way an offer, nor is it a guarantee of financing. A conditional approval is subject a full credit assessment and any offer you are offered could be on different terms.
Application process
Do I have the right to receive funds?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a couple minutes, and a dedicated business expert in lending will be in touch to guide you through the process.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent as well as 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, as well as interim financials for 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 to $100K) we typically offer a response in one hour – as long as you submit your request in standard company time and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements , we are able to offer an answer within the span of one business day.
For the Larger Business Loan ($100K to $500K) we might be likely to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Certain deals have been approved in 24 hours.
The quickest method would be to make sure you apply during normal business hours, and permit us to use the advance bank verification to instantly check your bank’s information online. If you opt to send us duplicates of your banking statement, it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within an hour if you make your application in normal business timings and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statements we can offer the decision in as little as 1 business day.
For Larger Business Loans ($100K to $500K) we might be in a position to provide the conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some transactions have received approval within 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours. Also, allow us to use the sophisticated bank verification to instantly check your bank’s information online. If you send us duplicates of your banking statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of factors in order to assess the well-being of your business and the level of the repayments your business can afford. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your business.
If you apply for a set amount, we will consider a number of elements to assess how much we can lend you such as well-being of the company and the extent of the repayments your company will be able to support. The total amount of the loan will be determined by the specific circumstances for your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for business loans with us company loan, we’ll assess the risk profile that you have for your business and provide you with a customised offer, including the amount of the loan, the duration and the interest rates. This business loan is an upfront cost loan so you will know the exact amount payable including any charges or interest.
What determines the rate that I’m charged?
Business loan interest rates differ based on various factors including the amount that is borrowed, what business assets the money will be used for in addition to the industry that the company is in, how long the company has been operating as well as what percentage of the company has enough cash flow to fund the loan, and also the general well-being or financial standing of the company.
What are the charges?
There are no hidden fees for our business loans. You’ll know precisely what you’ll be required to pay, and when, from the very first day. There’s no compounding interest, and no extra fees (as long as you make your payments on time).
We do not charge an Application Fee. You can request a credit loan without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of the loan in full at any time.
If you decide to do this please contact our helpful business loan specialists. They’ll offer you with details on repayment along with an early payout estimate. This is calculated as the total of the principal remaining and accrued interest to the date of early payout, plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather data, process, exchange and protect your information, is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We utilise a sophisticated bank verification system to instantly verify your bank account information online, allowing us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner borrows from the assets they have to get the funds for a loan. The asset can be an individual property, such as the family home, or it could be a company asset like a truck or piece of equipment.
The majority of banks, even the banks with the biggest size, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, the asset could be taken over by the lender. In essence it’s a way of securing new financing by using the worth of the asset you already own.
What do I require security to secure a business loan?
For loans up to $150K it is not necessary to secure assets prior to the loan’s access, however we do need an individual guarantee. So long as you comply with the terms of your loan (as stipulated in your loan contract) the security of assets will never be needed. If you take out loans in excess of $150K generally, there is an individual ensure and security that is in the form an asset charge.