FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Birkenhead Small Business Loans
Let me know how you are able to avail the Birkenhead Small Business Loans
Birkenhead unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and the money could be available in just 24 hours. Traditional business loans refer to an annual interest rate plus other fees and charges. We offer a business loan is an upfront priced loan so you will know in advance the total amount to be paid, including any fees, charges or charges. Then, it is broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company purpose including control of cash flow company remodels and marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Birkenhead Business Loans
What is the Larger Birkenhead Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the company needs to be trading for at least 3 years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A large company loan can be used to fund almost every company need, including business remodeling, buying inventory or new equipment or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This is in the form of a charge on assets, which could also be registered with the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature rather than stating the security for a particular asset. The person who signs the ensure is personally responsible if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR gives priority over personal property to be assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal document that is filed to offer an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan of $250K or more, we may offer an initial pre-approval in order to smooth out the process. We could be able to get this done without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial well-being checks. It is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject an exhaustive credit evaluation, and any offer that you are offered could be subject to different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Complete the online form in few minutes and a dedicated business lending specialist will contact you to guide you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer in just one hour, provided you make your application within standard business timings and you allow us to utilise the bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll provide the decision in as little as an business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely to offer you with a conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be quicker based on the particular circumstances of each application. Some transactions have received approval within less than 24 hours.
The most effective method would be to make sure you apply during standard business hours. You can also allow us to use our modern bank verification to verify your bank information online. If you decide to send us the copies of bank statements it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we can often provide an answer within an hour if you make your application during standard business time and permit us to use the bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements, we are able to provide an answer in as little as 1 business day.
For Larger Business Loans ($100K up to $500,000) We may be able to offer you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some agreements have been approved within less than 24 hours.
The fastest way would be to ensure you apply during normal business hours. Also, allow us to use the sophisticated bank verification link to instantly confirm your bank details online. If you choose to upload the copies of bank accounts, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of aspects in order to assess the health of the business and the level of payments your business is able to afford. The total amount of your loan will depend on the specific circumstances of your company.
When you make an application for a particular amount, we take into consideration a variety of aspects to determine your health of the company as well as the amount of payments your business can support. The total amount of your loan will be determined by the specific circumstances the business.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to make an application for business loans with us company loan, we’ll assess the risk assessment of your company and provide you with a tailored offer, including loan amount, term and interest rates. A business loan is an upfront priced loan which means you be aware of the total amount to be paid, including any charges or interest.
What is the basis for the rate I’m charged?
The interest rates on business loans rates depend on several factors including the amount of money borrowed, the business assets the money will be used for and the sector the business operates in, the long the company has been running for, what percentage of the company has sufficient cash flow to fund the loan, and general health or creditworthiness of the business.
What are the costs?
There are no hidden fees with our company loans, and you’ll know precisely what you be required to pay, and when, starting from day one. There’s no compounding and no extra fees (as long as you are able to make your payments in time).
We do not charge an application fee. You are able to get a cash loan without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan in advance?
You may choose to pay back the entire amount of your loan at any point in time.
If you do decide to take this route, please call our helpful company loan experts. They will provide you with details for repayment and an early payment figure. This is calculated as the total of the principal remaining and the accrued interest up to the time of early payout, plus 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
To ensure you do not miss payment dates and to align your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about how we collect data, process, exchange and secure your information, is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We employ an exceptionally sophisticated bank verification system that allows you to instantly confirm your bank account information online to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner utilises the assets they have to get a loan. The asset could be an individual asset, such as the family home, or an business asset like a truck or piece or equipment.
The vast majority of the lenders not just the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then your assets could be offered for sale by the lender. In essence it’s the process of securing new funding taking advantage of the value of what you already have.
Are I require security to secure a business loan?
For loans of up to $150,000, there is no requirement for asset security in advance to gain access to the funds but we require a personal guarantee. need the personal guarantee. In the event that you fulfill your loan commitments (as stipulated in the loan contract) and you are able to meet your obligations, asset security will never be required. If you take out loans in excess of $150,000 typically, you will need personal guarantee and security in the form charges on assets.