FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Bulla Small Business Loans
Let me know how you are able to avail the Bulla Small Business Loans
Bulla unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from the traditional business loan?
The application for the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and have the funds in your account within 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. This company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount payable 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?
It is a Small Business Loan can be used for almost every business use, including cash flow management, business remodeling, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Bulla Business Loans
What is the Larger Bulla Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are either weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been in operation for at least 3 years with an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can the funds be used for?
A large company loan can be used to fund almost every business reason, such as company renovations, purchase of inventory or new equipment or as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This is as a result of an charge on assets, and could be registered through the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally in nature rather than stating the security for a particular asset. The person signing the ensure is personally liable in the event that the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR allows the priority of personal property assigned according to the date the registration of a security interest.
A caveat is a legal document that is filed to offer an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger company loans of $250,000 or more we can offer an initial pre-approval to ease the process. We could be able to apply for this without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial well-being checks. This is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer you receive could have 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 over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a couple minutes, and a dedicated business expert in lending will contact you to help you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s License) and a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent, 12 month bank accounts, the 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 fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we typically offer an answer within one hour, provided you submit your request in standard company hours and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statement, we’ll provide an answer in just one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be in a position to offer you with conditional pre-approval in about six hours. After 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 within 24 hours.
The quickest method would be to make sure you apply during normal company hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you opt to upload duplicates of your banking accounts, it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) We can usually provide an answer in just one hour – provided you apply within standard business times and you allow us to use the bank verification system link to instantly verify your bank’s information online. If you want to submit copies of your bank statements, we are able to offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be able to offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some offers have been approved within the space of 24 hours.
The quickest method is to ensure you apply during normal business hours and let us use the advanced bank verification system link to confirm your bank details online. If you choose to send us the copies of bank statements it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we will consider a number of factors in order to assess your health of your company and the amount of the repayments your business can afford. The amount you receive from the loan will be determined by the particular circumstances of your company.
If you apply for a particular amount, we will consider a number of variables to determine how much we can lend you such as well-being that is your business as well as the amount of payments your company can afford. The total amount of the loan will be determined by the particular circumstances the company.
Fees & repayments
How do you charge for an company loan?
If you decide to make an application for business loans with us company loans, we will assess the risk assessment that you have for your company and provide you with a customised offer including loan amount, term and interest rates. It is a company loan is an upfront-priced loan therefore you will know in advance the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
Business loan interest rates depend on several factors including the amount borrowed, what company assets the money are used to purchase, the industry the business is operating in, how long the company is in operation and in the event that the company has enough cash flow to pay for the loan, as well as the overall well-being or financial standing of the business.
What are the fees?
There aren’t any hidden charges with our company loans. You’ll know precisely how much it is that you need to pay and when, starting from the very first day. There’s no compounding interest, and there are no additional charges (as as you make your payments on time).
We do not charge an application fee. You are able to get a cash loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan earlier?
You may choose to pay back the total amount of your loan at any point in time.
If you decide to pursue this option, please contact our helpful company credit specialists. They’ll provide you with the details of your repayment as well as an early payout amount. This will be calculated as the total of the principal amount remaining and accrued interest to the time of the early payout plus 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my data be protected?
Security of your data, and being transparent about how we collect data, process, exchange and secure your information, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to security for our clients and security. We make use of an advanced bank verification system to instantly verify the bank account details online so we can provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from an asset that they own to make the funding. The asset can be an asset belonging to the personal, like the family home, or a company asset such as a truck or other piece of machinery.
The majority of lenders, not just the banks with the biggest size, prefer to secure loans against assets. If you have trouble paying back the loan, your assets could be offered for sale by the lender. In essence, it is means of securing new financing taking advantage of the value of what you already have.
What do I require security for a company loan?
For loans of up to $150,000, the requirement for asset security is not required upfront to access the money However, we require a personal guarantee. need a personal guarantee. In the event that you fulfill the terms of your loan (as detailed in your loan contract) Asset security is not required. For loans over $150,000 generally, you can get an individual guarantee and security is provided in the form of charges on assets.