FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Black Rock Small Business Loans
Tell me more about Black Rock Small Business Loans
Black Rock unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and funds may be in your account within 24 hours. Traditional company loans refer to an annual interest rate as well as other fees and charges. Our company loan is an upfront priced 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 either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company need, such as the management of cash flow, company renovations, marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal purposes.
Concerning Larger Black Rock Business Loans
What is the Larger Black Rock Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also 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 of proving at the least 12 months of operating.
What can the funding be used for?
A large business loan can be used for nearly every business use, including business improvements, purchasing equipment or inventory as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. This can be done by taking a charge against assets, and may be registered with the PPSR or filing a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally based rather than defining security over a particular asset. The person signing the ensure is personally responsible if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
A caveat is a legal form of document to provide 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 an enterprise loan of more than $250K, we may offer an initial pre-approval that will help simplify the process. We could be able to get this done without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial well-being questions. This is not an offer or guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer that you receive could have different terms.
Application process
Do I have the right to receive funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a few minutes and an experienced business lending specialist will be in touch to help you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent twelve months of bank statements, IRD statement and the last two years’ finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we can often provide an answer within one hour if you submit your request within quality company timings and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements we can provide a decision within 1 company day.
For Larger Business Loans ($100K to $500K) we might be capable of offer the conditional pre-approval in around 6 hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Some transactions have received approval within less than 24 hours.
The most effective method would be to make sure you apply during standard company hours. Also, permit us to use the advance bank verification to instantly check your bank’s information online. If you send us duplicates of your banking accounts, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we usually offer an answer within one hour – provided you make your application in standard business time and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statements, we are able to provide a decision in as little as 1 business day.
For Larger Business Loans ($100K to $500K) we may be likely to provide you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved within less than 24 hours.
The most effective method can be ensure you apply during normal business hours and allow us to use our modern bank verification to instantly verify your bank information online. If you upload the copies of bank statement, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount we consider a variety of elements in order to assess your health of the company as well as the amount of payments your company can afford. The amount you receive from your loan will depend on the particular circumstances the company.
When you make an application for a certain amount, we will consider a number of factors to determine how much we can lend you such as well-being that is your business and the level of repayments that your company is able to afford. The total amount of your loan will be determined by the particulars for your company.
Fees & repayments
How do you charge for an business loan?
When you apply for business loans with us company credit, we’ll assess the risk profile for your company and provide you with a customised offer that includes loan amount, term and the interest rates. It is a company loan is an upfront priced loan therefore you will be aware in advance of the total amount payable including any charges, interest rates or fees.
What determines the rate that I’m charged?
Business loan interest rates vary due to factors including the amount borrowed, what business assets the money will be used for as well as the field the company operates in, the long the company has been running for, in the event that the business has sufficient cash flow to pay for the loan, and the general health or creditworthiness of the business.
What are the costs?
There are no hidden fees with our company loans. You’ll know precisely how much you’ll be required to pay, and at what time, from the very first day. There’s no compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to request a credit loan with without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you do decide to pursue this option, please talk to one of our helpful company credit experts. The experts will offer you with repayment details and an early payout figure. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payment in addition to 1.5 percent of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss due dates and also to be in line with your cash flow routine, we offer repayments that are either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear the ways we gather, use, exchange and secure your information, is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We make use of an advanced banking verification system to instantly verify the bank account details online so we can offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner makes use of an asset that they own to get the loan. The asset could be an asset belonging to the personal, like the family home, or a company asset such as a truck or piece or equipment.
The vast majority of banks, not just the banks with the biggest size, prefer to secure loans against assets. If you are having difficulty paying back the loan, then your assets could be transferred to the lender. In essence it’s the process of securing new financing using the worth of the asset you already own.
Are I require security to get an business loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. require the personal guarantee. So long as you comply with your loan obligations (as specified in your loan contract) Asset security will never be needed. For loans that exceed $150K, generally, there is a personal ensure and security in the form of an asset charge.