FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Burnside Small Business Loans
Tell me more about Burnside Small Business Loans
Burnside unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
It is possible to apply for the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an answer within the same day and have the funds available in just 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. We offer a business loan is a cash-based loan so you will know ahead of time the total amount due, which includes any interest, fees or charges. This is then broken down into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company use, including managing cash flows, company improvements, advertising to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal reasons.
Concerning Larger Burnside Business Loans
What is the Larger Burnside Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to be operating for a minimum of 3 years, and have an annual income of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funds for?
A larger business loan can be used for nearly any company use, including company remodeling, buying equipment or inventory or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. This is in the form of a charge on assets and can include registration with the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally in nature rather than specifying the security for a particular asset. The person who signs the guarantee is personally accountable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR gives preference over private property assigned according to the date the security interest that is registered.
An affidavit is an official document that is filed to provide the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000 we can offer an initial pre-approval that will help smooth out the process. We could be able to get this done without credit checks and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial health questions. It’s in no way an offer, nor is it a guarantee of credit. A conditional approval is subject a full credit assessment and any offer you may receive may be based on different conditions.
Application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in few minutes and a dedicated business credit specialist will call you to guide you.
To apply for up $100,000 you’ll need identification details (valid Driver’s License) and an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually offer an answer within one hour if you apply during standard business times and you allow us to utilise the bank verification system link to immediately verify your bank account information online. If you want to upload copies of your banking statements we can provide a decision within one company day.
For the Larger Business Loan ($100K to $500K) we might be in a position to offer the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved within just 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal company hours. Also, let us use the advanced bank verification system to verify your bank information online. If you decide to upload the copies of bank statements it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour if you submit your request in standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statements, we are able to offer an answer in just one business day.
If you are applying for Larger Business Loans ($100K and up) we may be able to offer you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved in less than 24 hours.
The most efficient method is to make sure you apply during standard business hours, and let us use the advanced bank verification system to verify your bank account information online. If you opt to send us duplicates of your banking statement, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a certain amount we look at a variety of factors in order to assess what is the well-being for your company and the level of the repayments your company will be able to support. The amount you receive from your loan will be contingent on the specifics the company.
When you make an application for a specific amount we will consider a number of variables to determine your health that is your company and the amount of the repayments your company can afford. The amount you receive from your loan will be contingent on the specifics of your company.
Fees & repayments
How much do you charge for the cost of a business loan?
When you request one of our business loan, we will assess the risk assessment of your business and offer you with a tailored offer including the loan amount, the terms and the interest rates. The business loan is an upfront-priced loan therefore you will know in advance the total amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I’m charged?
Business loan interest rates depend on a variety of factors including the amount of money borrowed, the business assets the funds will be used for and the sector the company is in, how long the business is in operation as well as in the event that the business has sufficient cash flow to cover the loan, as well as the overall health and creditworthiness of the business.
What are the costs?
There are no hidden costs for our business loans, and you’ll be aware of the amount you be required to pay, and at what time, from the day you sign up. There’s no compounding interest and no additional fees (as long as you make your payments in time).
We don’t charge an Application Fee. You can apply for a loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of 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 amount of the loan.
Do I have the option of paying off the loan earlier?
You can repay all of your loan at any point in time.
If you choose to take this route, please contact our helpful company credit experts. The specialists will offer you with repayment details along with an early payout estimate. This will be calculated as the total of the principal balance and the accrued interest up to the time of early payment plus 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
To make sure you do not miss repayments and to fit in your cash flow schedule, we provide payments that are either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and safeguard your data, is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We employ a highly sophisticated banking verification system to immediately verify your bank account details online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner makes use of an asset that they own to get the funds for a loan. The asset can be either an individual asset, such as the family home or an business asset such as a truck or other piece of machinery.
The majority of lenders, including the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, then the asset might be offered for sale by the lender. In essence, it’s means of securing new funding taking advantage of the value of what you already have.
What do I require security for a business loan?
For loans up to $150,000 there is no requirement for asset security prior to the loan’s access but we require a personal guarantee. need the personal guarantee. If you adhere to your loan obligations (as specified in your loan contract document) and you are able to meet your obligations, asset security will never be required. If you take out loans in excess of $150K generally, you can get personal guarantee and security in the form of charges on assets.