FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Beaumont Small Business Loans
Tell me what you think of the Beaumont Small Business Loans
Beaumont unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an traditional company loan?
It is possible to apply for the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and have the funds on your account within 24 hours. Traditional company loans refer to an annual interest rate along with other charges and fees. The company loan is a cash-based loan which means you be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then divided into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business need, such as control of cash flow business remodels and marketing for purchasing inventory or new equipment, for general working capital and so much more. The loan is not available for personal purposes.
Concerning Larger Beaumont Business Loans
What is the Larger Beaumont Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been operating for at least three years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funds be used for?
A Larger Business Loan can be used for nearly all business need, including business renovations, to purchase inventory or new equipment for 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 necessary to obtain funding above $150,000. It is usually in the form of a charge over assets, and may include registering this through the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally in nature rather than stating the security for a particular asset. The person signing the ensure is personally liable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including items or assets). The PPSR allows the priority of personal property assigned according to the date the security interest has been registered.
An affidavit is an official document filed to provide an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250K, we may offer a preliminary pre-approval to help smooth out the process. It is possible to get this done without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial health checks. It is not an offer or guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you may receive may have different conditions.
The application process
Do I qualify for funds?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application in just a few minutes, and an experienced company lending specialist will contact you to help you.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent, 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) we usually provide an answer in just one hour – as long as you apply during quality business hours and permit us to utilise the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statement, we’ll offer the decision within just 1 company day.
For Larger Business Loans ($100K to $500K) we may be capable of provide you with a conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved within 24 hours.
The fastest way for you to apply is make sure you apply during standard company hours. You can also allow us to use the advanced bank verification system link to instantly check your bank’s information online. If you upload documents from your account statements it can 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 one hour – provided you submit your request during standard business hours and allow us to use the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements, we will be able to offer the decision within an business day.
If you are applying for Larger Business Loans ($100K and up) We may be capable of offer the conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Certain offers have been approved within 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. Also, allow us to use the sophisticated bank verification to verify your bank account information online. If you decide to send us duplicates of your banking statements, it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of variables for determining how much we can lend you well-being of your business and the extent of repayments your company is able to afford. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
If you apply for a certain amount, we will consider a number of factors to assess the well-being for your company and the extent of the repayments your business can afford. The total amount of your loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for a company loan?
When you make an application for one of our company loan, we will assess the risk profile for your company and offer you with a customised proposal that includes the amount of the loan, the duration and interest rates. A company loan is an upfront-priced loan and you’ll be aware of the total amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I pay?
Interest rates for business loans rates depend on several factors such as the amount that is that is borrowed, what company assets the funds will be used for, the industry the company is in, how long the company is in operation, whether the company has sufficient cash flow to pay for the loan, as well as the general health or financial standing of the business.
What are the costs?
There aren’t any hidden charges for our business loans. You’ll know precisely what you’ll be required to pay, and at what time, from the very first day. There’s not any compounding interest and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You can make an application for loans absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated in 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% of the loan amount.
Can I repay the loan in advance?
You may choose to pay back the total amount of your loan at any point in time.
If you do decide to pursue this option, please talk to one of our helpful business lending experts. They’ll offer you with details on repayment along with an early payout estimate. It will be calculated using the total of the principal amount remaining and accrued interest to the date of early payout, plus 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss due dates and also to be in line your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and being upfront about the ways we gather, use, exchange and ensure the security of your information is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal and financial data 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 link to instantly verify your bank account details online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from an asset that they own to get the funds for a loan. The asset could be an individual property, such as the family home, or a business property like a truck or other piece of machinery.
The vast majority of the lenders including the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan, the asset might be offered for sale by the lender. In essence, it is the process of securing new financing using the worth of the asset you already own.
Are I need security for a company loan?
For loans that exceed $150,000, the requirement for asset security is not required before you are able to access the money however, we require a personal guarantee. require a personal guarantee. In the event that you fulfill the loan terms (as specified in the loan contract) Asset security will never be needed. For loans over $150,000 generally there is the option of a personal guarantee and security in the form of the charge of assets.