FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Burwood East Small Business Loans
Tell me how you can avail the Burwood East Small Business Loans
Burwood East unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and funds may be in your account within 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. We offer a company loan is a loan that is priced upfront therefore you’ll know in advance the total amount payable including any fees, interest or charges. This is then broken down into either a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company need, such as control of cash flow company improvements, advertising to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal reasons.
About larger Burwood East Business Loans
What is the Larger Burwood East Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been operating for a minimum of 3 years with an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funds for?
A large company loan is a great option for almost any company purpose including business remodeling, buying inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It is usually in the form of a charge on assets, which could also be registered on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is generally based rather than stating the security for a particular asset. The person signing the guarantee is personally liable in the event that the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be assigned according to the date the security interest that is registered.
The caveat can be described as a formal document lodged to provide an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan that is greater than $250K we may be able to provide an initial pre-approval that will help simplify the process. We may be able to make this decision without a credit check and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial well-being questions. It is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer you are offered could have different conditions.
The application process
Do I qualify for funds?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in few minutes and an experienced business credit specialist will be in touch to help you.
To be eligible for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
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 within quality company timings and permit us to utilise the bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll offer the decision within the span of one company day.
For Larger Business Loans ($100K or more) we may be capable of offer the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this can be quicker based on the particular circumstances of each application. Certain deals have been approved in just 24 hours.
The most effective method would be to make sure you apply during standard company hours and allow us to use our advance bank verification link to confirm your bank details online. If you send us the copies of bank accounts, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour, provided you apply in standard business times and let us use the bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements we can offer an answer within 1 business day.
For Larger Business Loans ($100K to $500K) We may be capable of provide you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some offers have been approved within the space of 24 hours.
The fastest way is to make sure you apply during standard business hours, and allow us to use the modern bank verification link to instantly verify your bank account information online. If you opt to send us duplicates of your banking statements, it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount, we consider a variety of factors to determine how much we can lend you health of the company as well as the amount of the repayments your company can support. The total amount of your loan will depend on the specific circumstances for your company.
When you submit an application for a particular amount, we look at a range of variables to determine the well-being for your company and the amount of repayments your company can support. The total amount of your loan will be determined by the specific circumstances the company.
Fees & repayments
How much should you charge for a company loan?
If you decide to apply for the company loan, we’ll assess the risk profile that you have for your company and offer you with a customised proposal that includes the amount of loan, the term and the interest rates. A company loan is a loan that is priced upfront so you will be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I pay?
Interest rates for business loans rates vary due to factors such as the amount that is that is borrowed, what business assets the funds will be used for as well as the field the business is in, how long the company has been in operation, what percentage of the company has enough cash flow to support the loan, and the general well-being and creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our business loans, and you’ll be aware of the amount you’ll be required to pay and at what time, from day one. There’s no compounding and no additional fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You are able to request a credit loan with no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan in advance?
You may choose to pay back all of your loan in full at any time.
If you are deciding to take this route, please contact our helpful company lending specialists. The professionals will provide you with details on repayment along with an early payout estimate. This will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout plus 1.5% of the principal remaining and any outstanding fees.
What are the repayment methods?
To make sure you do not miss payments and to work your cash flow cycle we provide repayments either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about how we collect, use, exchange and safeguard your data, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We employ an exceptionally sophisticated bank verification system to immediately verify the bank account details online to provide 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 assets they own to secure the funds for a loan. The asset can be an individual property, such as the family home or a company asset such as a vehicle as well as a piece of machine.
The majority of banks, not just the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, the asset might be sold by the lender. In essence, it is means of securing additional financing using the value of what you already own.
Do I require security to get a company loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds however, we do need the personal guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract document) the security of assets will never be required. For loans of over $150,000 generally, there is an individual guarantee and security is provided in the form of the charge of assets.