FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Melbourne Small Business Loans
Tell me about the Melbourne Small Business Loans
Melbourne unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from an ordinary company loan?
Apply to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans reference an annual interest rate along with other charges and fees. Our business loan is a pre-paid loan so you will know ahead of time the total amount payable including any fees, interest or charges. This is then broken down into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business purpose including the management of cash flow, company remodeling, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Melbourne Business Loans
What is the Larger Melbourne Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to be in operation for at least 3 years and generate an annual revenue of $700K. You must 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 minimum 12 months of business.
How can the funding be utilised?
A larger business loan can be used to fund almost every company purpose including company renovations, to purchase equipment or inventory as well as for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually as a result of an charge on assets and can include registration with the PPSR or making a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally in nature rather than specifying security over an asset. The person who is signing the guarantee is personally accountable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR gives the priority of personal property granted in accordance with the date on which a registration of a security interest.
A caveat is a legal document that is filed to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval that will help smooth out the process. It is possible to make this decision without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial health checks. It’s not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you are offered could be based on different conditions.
The application process
Are I eligible for funding?
You may be eligible 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)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just complete the online application in few minutes and a dedicated business expert in lending will contact you to help you.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s License) along with an active 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 credit is over $150K).
$250K-$500K: Information on the application including credit consent, 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) We can usually provide an answer in just one hour – as long as you make your application during quality company timings and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can offer a decision within just an business day.
For the Larger Business Loan ($100K or more) we could be in a position to offer you with conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some agreements have been approved within 24 hours.
The quickest method is to ensure you apply during normal company hours. Also, let us use the advance bank verification link to confirm your bank details online. If you opt to send us duplicates of your banking accounts, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we typically provide an answer within an hour – provided you submit your request at standard business hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll offer the decision in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be in a position to offer you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain transactions have received approval in just 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, permit us to use the modern bank verification link to check your bank’s information online. If you decide to upload copies of your bank statements it may take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a specific amount we consider a variety of elements to determine what is the health of the business as well as the amount of repayments your business can afford. The total amount of your loan will be contingent on the specific circumstances for your company.
When you submit an application for a particular amount, we look at a range of factors to assess how much we can lend you such as health that is your company and the level of the repayments your company can support. The amount you receive from your loan will depend on the particular circumstances for your business.
Fees & repayments
How do you charge for a business loan?
If you decide to apply for our business financing, we will assess the risk profile for your business and provide an individualised offer that includes loan amount, term and the interest rates. It is a company loan is a loan that is priced upfront which means you be aware of the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Business loan interest rates vary due to factors like the amount of money borrowed, what business assets the money will be used for and the sector the business operates in, the long the business has been operating for, what percentage of the business has enough cash flow to pay for the loan, and also the overall health or creditworthiness of the business.
What are the charges?
There are no hidden fees for our company loans. You’ll know exactly how much you need to pay, and when, right from the very first day. There’s no compounding interest and no additional fees (as long as you make your payments in time).
We do not charge an Application Fee. You can get a cash loan with without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan early?
You can repay the entire amount of the loan early at any time.
If you do decide to do this please speak to our friendly company lending experts. We will provide you with the details of your repayment and an early payout figure. It will be calculated using the sum of the principal balance plus any accrued interest as of the time of the early payout, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To make sure that you don’t miss repayments and to fit in with your cash flow general, we provide payments that are either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and knowing the ways we gather data, process, exchange and safeguard your data, is vital and is a crucial 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 personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We use an advanced banking verification system to instantly verify your bank account details online to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner uses the assets they have to get the funding. The asset can be an individual asset, such as the family home, or a company property like a truck or piece or equipment.
The majority of banks, even the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset could be sold by the lender. In essence it’s a way of securing new financing by using the value of what you already own.
Do I require security for a business loan?
Up to $150,000 in loans the requirement for asset security is not required before you are able to access the money but we require a personal guarantee. require a personal guarantee. So long as you comply with your loan obligations (as specified in the loan contract), asset security will never be required. For loans of over $150,000 generally, you can get an individual guarantee and security is provided in the form of a charge over assets.