FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Blackwood Small Business Loans
Tell me more about Blackwood Small Business Loans
Blackwood unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from an traditional business loan?
The application for the Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and funds may be on your account within 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. We offer a company loan is a cash-based loan which means you know in advance the total amount to be paid, including any fees, interest or charges. Then, it is divided into a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business purpose including cash flow management, company improvements, advertising to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
About the Larger Blackwood Business Loans
What is the Larger Blackwood Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to be in operation for at least 3 years and have an annual turnover of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost all business purpose including business renovations, to purchase new equipment or inventory, as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is in the form of a charge over assets, and may be registered on the PPSR or making a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature, rather than defining the security for a particular asset. The person who is signing the ensure is personally liable in the event that the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR gives priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
An affidavit is an official document filed to offer the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250K, we may offer an initial pre-approval that will help smooth out the process. We could be able to apply for this without a credit check, and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial health questions. It is in no way an offer, nor is it a guarantee of financing. A conditional approval is subject a full credit assessment and any offer that you receive could be based on different terms.
The application process
Are I eligible for funding?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 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. Complete the online form 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 require ID details (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Application details including credit consent twelve months bank statement, an IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within an hour if you submit your request at quality company timings and let us utilise the bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements , we are able to provide an answer within just an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be able to provide you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Certain agreements have been approved in just 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours. You can also permit us to use the advance bank verification to confirm your bank details online. If you decide to send us the copies of bank accounts, it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour – provided you submit your request at standard business hours and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll offer a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K and up) we might be capable of provide the conditional pre-approval in about six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The fastest way can be make sure you apply during normal business hours, and allow us to use the modern bank verification link to instantly verify your bank information online. If you upload the copies of bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we look at a variety of factors for determining what is the well-being that is your business as well as the amount of payments your company is able to afford. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
When you apply for a specific amount we consider a variety of aspects to assess the well-being of your business and the level of the repayments your company is able to afford. The total amount of your loan will be determined by the particulars for your company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to apply for the company loan, we’ll assess the risk profile that you have for your business and provide you with a tailored offer, including the amount of loan, the term and the interest rates. It is a company loan is an upfront-priced loan so you will be aware of the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I’m charged?
Business loan interest rates depend on a variety of factors including the amount borrowed, the business assets the funds are used to purchase in addition to the industry that the company operates in, how long the business is in operation for, in the event that the business has sufficient cash flow to pay for the loan, as well as the overall well-being or financial standing of the business.
What are the fees?
There are no hidden fees for our company loans, and you’ll know precisely how much you’ll be required to pay and at what time, from the day you sign up. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to apply for a loan with no cost upfront or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan early?
You can decide to repay all of your loan early at any time.
If you decide to pursue this option, please contact our helpful business lending experts. The experts will offer you with details on repayment along with an early payout estimate. This is calculated as the sum of the remaining principal amount and accrued interest to the time of the early payout and 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange and safeguard your data, is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our clients and security. We employ an exceptionally sophisticated bank verification system link to instantly verify the bank account details online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from the assets they have to secure the funds for a loan. The asset could be an individual property, such as the family home, or a business asset such as a truck or other piece of machinery.
The vast majority of the lenders including the banks with the biggest size, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, the asset might be offered for sale by the lender. In essence it is the process of securing new financing by taking advantage of the value of what you already have.
What do I require security to get a company loan?
For loans of up to $150K, no asset security is required before you can access the money however, we do require an individual guarantee. If you adhere to your loan obligations (as specified in your loan contract document), asset security is not required. For loans that exceed $150,000, generally, there is personal ensure and security that is in the form a charge over assets.