FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Brooklyn Small Business Loans
Tell me what you think of the Brooklyn Small Business Loans
Brooklyn unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an traditional company loan?
The application for your Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the money could be in your account in 24 hours. Traditional company loans refer to an annual interest rate as well as other fees and charges. The business loan is a cash-based loan which means you know in advance the total amount due, which includes any fees, charges or charges. Then, it is broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company need, such as managing cash flows, business remodeling, marketing to purchase inventory, new equipment, for general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Brooklyn Business Loans
What is the Larger Brooklyn Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly, depending on your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your company needs to be in operation for at least 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have 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 used for?
A larger business loan is a great option for almost any business use, including business improvements, purchasing new equipment or inventory or as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This can be done by taking a charge against assets, which could also include registering this with the PPSR or filing a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally based rather than specifying security over a particular asset. The person who signs the ensure is personally liable in the event that the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted in accordance with the date on which a registration of a security interest.
A caveat is a legal form of document to offer an official notice of a claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan that is greater than $250K it’s possible to offer an initial pre-approval that will help ease the process. We could be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial well-being checks. This is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you receive could be on different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (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 within a few minutes and an experienced company expert in lending will call you to guide you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s License) 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-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details of the application, including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically provide a response in one hour if you apply during quality business time and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements , we are able to offer the decision in just an business day.
For the Larger Business Loan ($100K or more) we might be capable of provide you with conditional pre-approval within six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Certain agreements have been approved within the space of 24 hours.
The quickest method is to ensure you apply during normal business hours. Also, permit us to use the advanced bank verification system link to verify your bank account information online. If you decide to send us duplicates of your banking statements , it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour, provided you make your application at standard business time and allow 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 can offer the decision in just one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be likely to offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The fastest way can be ensure you apply during standard business hours. You can also allow us to use the modern bank verification link to instantly verify your bank account information online. If you choose to send us the copies of bank statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount we consider a variety of aspects to determine your well-being that is your company and the level of repayments your business can support. The total amount of the loan will be determined by the specifics that are unique to your company.
When you submit an application for a set amount, we consider a variety of aspects to assess the well-being that is your company as well as the amount of repayments your company can support. The amount you receive from your loan will be contingent on the specifics the company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to request one of our business loans, we will assess the risk profile for your company and offer you with a customised offer, including the amount of loan, the term and the interest rates. A company loan is an upfront cost loan therefore you will be aware in advance of the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates depend on a variety of variables like the amount to be borrowed, the business assets the money will be used for, the industry the company is in, how long the company has been in operation and whether the business has enough cash flow to pay for the loan, and general well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden costs with our company loans, and you’ll know precisely how much you need to pay and when, right from the day you sign up. There’s no compounding interest and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to request a credit loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan early?
You can choose to repay the total amount of your loan in full at any time.
If you decide to take this route, please talk to one of our helpful company loans experts. The specialists will provide you with details for repayment along with an early payout estimate. The figure will be calculated as the sum of the principal remaining and accrued interest to the date of early payout, plus 1.5 percent of the principal amount remaining plus any outstanding fees.
How do repayments work?
To make sure that you don’t miss repayments and to fit in with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear how we collect data, process, exchange and secure your information, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their security. We use an advanced banking verification system to immediately verify your bank account details online. This allows us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner uses the assets they have to secure the funding. The asset can be either a personal asset like the family home or a business property like a truck or other piece of machinery.
The majority of lenders, including the major banks, prefer to secure loans against an asset. If you are having difficulty paying back the loan then your asset may be transferred to the lender. In essence, it is the process of securing new financing by taking advantage of the value of what you already have.
Should I need security for a company loan?
Up to $150K in loans no asset security is required in advance to gain access to the funds however, we do require an individual guarantee. As long as you follow the loan terms (as stipulated in your loan contract document) the security of assets is not required. If you take out loans in excess of $150,000 generally, you can get an individual guarantee and security is provided in the form of charges on assets.