FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Blockhouse Bay Small Business Loans
Tell me more about Blockhouse Bay Small Business Loans
Blockhouse Bay unsecured loans provides amounts 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.
What makes the Unsecured Loan different from an traditional company loan?
Apply for your Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and the money could be in your account in 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. The company loan is a loan that is priced upfront which means you be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business purpose including managing cash flows, 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 Blockhouse Bay Business Loans
What is the Larger Blockhouse Bay Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to have been in operation for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan is a great option for almost all company purpose including business renovations, purchase of inventory or new equipment as well as for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It’s as a result of an charge against assets, and may include registration on the PPSR or registering as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally in nature rather than defining security over an asset. The person who is signing the guarantee is personally accountable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR gives priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal form of document to offer the legal claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger business loans that exceeds $250K, we may offer an initial pre-approval that will help ease the process. It is possible to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial well-being checks. This is neither an offer nor a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could be subject to different terms.
Application process
Can I be eligible for funding?
You may be eligible 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)
- must show at least six months worth of trade (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a couple minutes, and a dedicated business loan specialist will call you to guide you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent and 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we can often provide an answer in just one hour, provided you make your application within quality business time and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statement, we’ll provide the decision within one business day.
For Larger Business Loans ($100K to $500K) we may be in a position to offer you with conditional pre-approval in about six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be quicker based on the circumstances of each application. Certain transactions have received approval in just 24 hours.
The most effective method is to ensure you apply during normal company hours. You can also let us use the advance bank verification link to instantly verify your bank information online. If you decide to send us documents from your account accounts, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we can often provide an answer in just one hour – provided you apply at normal business time and let us use the bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements we can offer the decision within an business day.
For Larger Business Loans ($100K and up) we may be capable of provide the conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based upon the circumstances for each application. Certain deals have been approved in less than 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours. Also, permit us to use the advance bank verification link to check your bank’s information online. If you choose to send us the copies of bank statements it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a specific amount we consider a variety of aspects to determine your health of the company and the extent of the repayments your company can afford. The amount you receive from your loan will be contingent on the particular circumstances of your business.
When you submit an application for a specific amount we take into consideration a variety of variables to assess how much we can lend you such as health that is your company and the extent of repayments that your business can support. The amount you receive from the loan will be determined by the specifics the company.
Fees & repayments
How do you charge for an business loan?
If you decide to request the business credit, we will assess the risk profile for your company and offer you with a customised offer, including the loan amount, the terms and the interest rates. It is a company loan is an upfront priced loan therefore you will know the exact amount payable including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
The interest rates on company loans rates depend on a variety of factors including the amount of money borrowed, the business assets the money are used to purchase as well as the field the business operates in, how long the company has been running, whether the company has enough cash flow to fund the loan, and general well-being and creditworthiness of the company.
What are the costs?
There are no hidden costs with our company loans, and you’ll know precisely what it is that you be required to pay, and when, starting from day one. There’s no compounding and no additional fees (as as you make your payments on time).
We do not charge an application fee. You are able to get a cash loan with no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated with setting up 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% of the loan amount.
Can I pay out the loan in advance?
You can decide to repay all of your loan in full at any time.
If you are deciding to do this please speak to our friendly company lending professionals. They’ll offer you with repayment details and an early payout figure. This is calculated as the total of the principal amount remaining and the accrued interest up to the date of early payout in addition to 1.5% of the principal remaining plus any outstanding fees.
How do repayments work?
To help you avoid missing payments and to work with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing how we collect information, use it, and exchange it, as well as secure your information, is vital and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We make use of an advanced bank verification system link to immediately verify the bank account details online, allowing us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner utilises an asset they own to get the funding. The asset could be an individual asset, such as the family home or a company asset such as a truck or other piece of machinery.
The majority of lending institutions, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, then your assets could be taken over by the lender. In essence, it is an opportunity to secure additional financing making use of the value of what you already own.
What do I need security to secure an company loan?
Up to $150K in loans no asset security is required in advance to gain access to the funds However, we require a personal guarantee. need the personal guarantee. As long as you follow your loan commitments (as detailed in the loan contract) the security of assets will never be required. For loans that exceed $150K, generally, there is a personal guarantee and security that is in the form charges on assets.