FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Adelaide Small Business Loans
Tell me about the Adelaide Small Business Loans
Adelaide unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
Apply to get this 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 refer to an interest rate per annum along with other charges and fees. The company loan is a cash-based loan therefore you’ll know ahead of time the total amount due, which includes any interest, fees or charges. Then, it is broken down into 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 for virtually any business purpose including control of cash flow company renovations, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan is not available for personal purposes.
Concerning Larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been in operation for at least 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funds be used for?
A large business loan can be used to fund almost all business reason, such as company renovations, purchase of new equipment or inventory for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. It’s in the form of a charge over assets, which could also include registration in the PPSR or filing a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally based rather than stating the security of a specific asset. The person signing the guarantee 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 that is operated by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR permits the priority of personal property assigned according to the date a security interest has been registered.
The caveat can be described as a formal 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 an enterprise loan of $250K or more it is possible to offer a preliminary pre-approval to help make the process. We may be able to make this decision without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial well-being questions. It is neither an offer nor a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer that you receive could be based on different conditions.
Application process
Do I have the right to receive funds?
You may apply for a company 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 worth of trade (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a few minutes and an experienced company expert in lending will contact you to help you.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we can often offer an answer in just one hour if you make your application during quality company hours and let us utilise the bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statements , we’ll be able to offer a decision in as little as 1 business day.
For the Larger Business Loan ($100K or more) we could be in a position to provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Some offers have been approved in less than 24 hours.
The fastest way can be make sure you apply during normal company hours and allow us to use our modern bank verification to instantly verify your bank account information online. If you opt to upload duplicates of your banking statement, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we can often offer a response in one hour, provided you submit your request in normal business hours and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements, we’ll be able to provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we may be in a position to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some deals have been approved within just 24 hours.
The most efficient method is to ensure you apply during normal business hours, and permit us to use the advanced bank verification system link to check your bank’s information online. If you send us documents from your account statements it can take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of elements for determining the well-being for your business and the amount of repayments that your company is able to afford. The total amount of the loan will be determined by the specifics of your company.
When you apply for a certain amount, we will consider a number of variables to assess the health of your business and the extent of repayments your business can afford. The amount you receive from your loan will be contingent on the particulars for your business.
Fees & repayments
How much should you charge for a business loan?
When you apply for the company loans, we’ll assess the risk assessment of your company and provide an individualised offer, including the loan amount, the terms and interest rates. This company loan is an upfront priced loan so you will know the exact amount due, which includes any charges, interest rates or fees.
What determines the amount I am charged?
The interest rates on company loans rates depend on a variety of factors including the amount that is borrowed, what company assets the funds are used to purchase and the sector the business operates in, how long the business is in operation as well as what percentage of the company has enough cash flow to cover the loan, and overall health as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges with our company loans, and you’ll know precisely how much it is that you need to pay and when, from the day you sign up. There’s no compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I repay the loan early?
You can choose to repay the entire amount of the advance loan at any time.
If you decide to take this route, please call our helpful business lending experts. The experts will provide you with repayment details and an early payment figure. This will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of the early payout and 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss repayments and to fit in your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and an integral 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 protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We make use of an advanced bank verification system that allows you to instantly confirm your bank account information online, allowing us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner uses an asset they own to obtain the loan. The asset may be a personal asset like the family home or it could be a business asset like a truck or other piece of machinery.
The majority of the lenders even the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, then the asset could be sold by the lender. In essence it’s a way of securing new financing making use of the value of what you already own.
Should I need security to secure an company loan?
For loans up to $150K it is not necessary to secure assets in advance to gain access to the funds however, we require a personal guarantee. require the personal guarantee. As long as you follow the terms of your loan (as specified in your loan contract), asset security is not needed. If you take out loans in excess of $150,000 generally, there is the option of a personal guarantee and security is provided in the form of a charge over assets.