FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Adelaide Small Business Loans
Let me know how you are able to avail the Adelaide Small Business Loans
Adelaide unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an traditional business loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and funds may be available in just 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. This company loan is a pre-paid loan and you’ll be aware of the total amount payable including any interest, fees or charges. This is then broken down into weekly or daily payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business purpose including control of cash flow company improvements, advertising to purchase inventory, new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
About larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly all company need, including company improvements, purchasing inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This is in the form of a charge against assets, and could include registering this through the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature rather than stating security over an asset. The person signing the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR permits priority over personal property to be granted according to the date a security interest that is registered.
An affidavit is an official document filed to provide an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of more than $250,000 we may be able to provide an initial pre-approval in order to make the process. It is possible to apply for this without a credit check, 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 health checks. This is not an offer or guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer you may receive may be subject to different conditions.
Application process
Do I qualify for funds?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have 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 trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Complete the online form in just a few minutes, and a dedicated business loan specialist will call you to guide you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence), a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent, 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we usually offer a response in one hour if you make your application at quality business time and let us use the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statements , we’ll be able to provide the decision in as little as an company day.
If you are applying for a Larger Business Loan ($100K and up) we may be in a position to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the circumstances of each application. Some offers have been approved in less than 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours, and allow us to use the advanced bank verification system link to check your bank’s information online. If you opt to send us copies of your bank statement, it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) we usually provide an answer in just one hour – as long as you make your application during standard business time and let us use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements we can provide a decision in just an business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be likely to offer the conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved in 24 hours.
The quickest method can be ensure you apply during normal business hours, and permit us to use the advanced bank verification system to verify your bank information online. If you opt to send us documents from your account statements, it can take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of variables for determining the health of your business and the amount of repayments that your business is able to afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
When you submit an application for a set amount, we take into consideration a variety of factors to assess the health that is your company and the extent of repayments that your company will be able to support. The amount you receive from your loan will be determined by the particulars the business.
Fees & repayments
How do you charge for an company loan?
If you decide to request the company credit, we’ll assess the risk profile for your company and offer an individualised offer including the amount of loan, the term and the interest rates. This company loan is an upfront-priced loan and you’ll know the exact amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I will be charged?
Interest rates for company loans rates depend on a variety of factors such as the amount that is that is borrowed, what business assets the money will be used for, the industry the company operates in, how long the business has been in operation as well as in the event that the company has sufficient cash flow to fund the loan, and the general well-being or financial standing of the business.
What are the charges?
There aren’t any hidden costs for our business loans. You’ll know exactly how much you’ll need to pay and when, starting from the very first day. There’s no compounding interest, and there are no additional charges (as long as you make your payments on time).
We do not charge an Application Fee. You can request a credit loan with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay off the loan early?
You can decide to repay the total amount of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful business loans professionals. They’ll provide you with the details of your repayment and an early payout figure. This is calculated as the total of the principal remaining plus any accrued interest as of the date of early payout in addition to 1.5 percent of the remaining principal as well as any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about how we collect the information we collect, use, share 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 utilise industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We make use of an advanced banking verification system to instantly confirm your bank account information online, allowing us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the company owner uses assets they own to obtain a loan. The asset can be a personal asset like the family home, or it could be a business asset such as a vehicle or piece or equipment.
The majority of lenders, even the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan, the asset could be sold 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 for a company loan?
For loans up to $150,000 no asset security is required prior to the loan’s access but we do require the personal guarantee. As long as you follow your loan commitments (as stated in your loan contract), asset security is not required. For loans of over $150,000 generally, you are able to get a personal guarantee and security in the form the charge of assets.