FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Blockhouse Bay Small Business Loans
Let me know more about Blockhouse Bay Small Business Loans
Blockhouse Bay unsecured loans offers amounts of 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.
How is the Unsecured Loan different from a traditional company loan?
You can apply for your Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and the money could be in your account in 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. Our company loan is an upfront priced loan therefore you’ll know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into weekly or daily payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company reason, such as managing cash flows, business renovations, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
About Larger Blockhouse Bay Business Loans
What is the Larger Blockhouse Bay Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for a minimum of 3 years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost all company use, including business improvements, purchasing inventory or new equipment or as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. This is by way of charge against assets, which could also be registered with the PPSR or filing a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature rather than defining security over an asset. The person who signs the guarantee is personally liable in the event that the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR gives preference over private property granted depending on the date that a registration of a security interest.
The caveat can be described as a formal document that is filed to offer notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000 it’s possible to offer an initial pre-approval to simplify the process. We might be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial well-being questions. It’s not an offer or guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer that you might receive could be based on different conditions.
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 18 years or older, have 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 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form in few minutes and an experienced company expert in lending will call you to guide you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent, 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically offer an answer within an hour if you apply during standard business times and permit 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 an answer within just one business day.
For the Larger Business Loan ($100K and up) we might be able to provide you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved within the space of 24 hours.
The quickest way to apply can be make sure you apply during normal business hours. You can also permit us to use the advance bank verification to instantly verify your bank account information online. If you decide to upload copies of your bank accounts, it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour – provided you submit your request in normal business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to send us copies of your bank statements we can provide the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be able to offer the conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some agreements have been approved within the space of 24 hours.
The fastest method would be to ensure you apply during standard business hours. Also, allow us to use our advance bank verification link to verify your bank account information online. If you opt to send us documents from your account statement, it can 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 will consider a number of factors in order to assess the well-being of your company as well as the amount of repayments that your company can support. The total amount of your loan will depend on the particular circumstances of your company.
If you apply for a set amount, we consider a variety of variables to assess the well-being of the company and the level of repayments that your business can support. The total amount of your loan will be determined by the particular circumstances for your business.
Fees & repayments
How do you charge for an company loan?
When you request our business financing, we will assess the risk profile that you have for your business and provide you with a customised proposal that includes the loan amount, the terms and the interest rates. This company loan is an upfront cost loan and you’ll be aware in advance of the total amount due, which includes any charges or interest.
What is the factor that determines the price I pay?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, what company assets the money are used to purchase as well as the field the business is in, how long the company has been in operation for, what percentage of the business has enough cash flow to cover the loan, as well as the overall well-being and 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, right from the first day. There’s no compounding and no extra fees (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to request a credit loan no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated in establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan early?
You can decide to repay the total amount of your loan in full at any time.
If you do decide to pursue this option, please call our helpful company lending professionals. The specialists will provide you with details on repayment as well as an early payout amount. It will be calculated using the total of the principal balance and accrued interest to the time of early payout and 1.5 percent of the principal remaining and any fees that remain unpaid.
How do repayments work?
To help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and knowing how we collect information, use it, and exchange it, as well as safeguard your data, is of paramount importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We utilise a sophisticated bank verification system to instantly confirm your bank account information online. This allows us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner borrows from the assets they have to make a loan. The asset could be an individual property, such as the family home, or a business asset like a truck or other piece of machinery.
The majority of banks, even the banks with the biggest size, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, your asset may be offered for sale by the lender. In essence, it’s means of securing new financing by making use of the value of what you already own.
What do I need security to get a company loan?
For loans that exceed $150K, there is no requirement for asset security before you are able to access the money However, we require a personal guarantee. require the personal guarantee. If you adhere to your loan obligations (as stipulated in the loan contract) Asset security will never be required. If you take out loans in excess of $150K typically, you will need a personal guarantee and security in the form of an asset charge.