FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Brahma Lodge Small Business Loans
Tell me more about Brahma Lodge Small Business Loans
Brahma Lodge unsecured loans provides the range of $5,000 to $100,000. Terms range 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 an ordinary company loan?
The application to the Small Business Loan in under 10 minutes via the internet or by phone. You will receive a same day response and funds may be available in just 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. We offer a company loan is an upfront priced loan which means you know in advance the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company use, including cash flow management, business renovations, marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal reasons.
About larger Brahma Lodge Business Loans
What is the Larger Brahma Lodge Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to be operating for at least three years and generate an annual revenue of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be used for?
A Business Loan of a larger size is a great option for almost every company need, including company renovations, purchase of new equipment or inventory, 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 necessary to access funding over $150,000. This can be done by way of charge against assets, which could also include registering this in the PPSR or making a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is generally in nature rather than stating security over an asset. The person signing the ensure is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR grants priority over personal property to be granted according to the date the security interest has been registered.
The caveat can be described as a formal form of document to provide the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan of more than $250K we can offer an initial pre-approval to make the process. It is possible to do this without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial health questions. This is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer that you might receive could be subject to different terms.
The application process
Are I eligible for funding?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application in few minutes and a dedicated company credit specialist will contact you to assist you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Application details including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) We can usually provide an answer within one hour – as long as you make your application in standard company hours and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements we can offer an answer within just the span of one business day.
For Larger Business Loans ($100K or more) we might be likely to offer you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Some agreements have been approved within the space of 24 hours.
The most effective method for you to apply is make sure you apply during standard company hours and allow us to use our modern bank verification link to instantly confirm your bank details online. If you upload copies of your bank statements it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour – as long as you apply at standard business times and let us use the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements we can provide the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be likely to offer you with a conditional pre-approval in about 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending upon the circumstances for each application. Certain agreements have been approved within less than 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. Also, permit us to use the advance bank verification to verify your bank account information online. If you choose to send us duplicates of your banking accounts, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of factors that determine the health that is your company as well as the amount of repayments your company is able to afford. The total amount of the loan will be determined by the specifics the company.
When you submit an application for a particular amount, we take into consideration a variety of variables to determine the health of the business and the extent of repayments that your business is able to afford. The total amount of your loan will be determined by the specifics for your business.
Fees & repayments
What is the cost for the cost of a company loan?
When you apply for one of our business credit, we’ll assess the risk assessment for your company and provide you with a customised proposal that includes the amount of the loan, the duration and interest rates. The business loan is an upfront priced loan so you will be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What determines the amount I’m charged?
Business loan interest rates vary due to factors such as the amount that is that is borrowed, what company assets the money will be used for as well as the field the business operates in, the long the company has been in operation, how long the business has enough cash flow to cover the loan, and the overall well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden costs with our company loans, and you’ll be aware of the amount you need to pay, and when, right from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan early?
You can repay all of your loan early at any time.
If you decide to pursue this option, please talk to one of our helpful business loan professionals. We will offer you with the details of your repayment as well as an early payout amount. It will be calculated using the sum of the principal balance plus any accrued interest as of the time of the early payout and 1.5% of the principal balance and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow routine, we provide payments that are either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being upfront about the ways we gather data, process, exchange and safeguard your data, is crucial and a vital 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 standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We make use of an advanced bank verification system that allows you to instantly confirm your bank account information online. This allows us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner borrows from an asset they own to get the funds for a loan. The asset could be an asset belonging to the personal, like the family home, or it could be a company asset such as a truck as well as a piece of machine.
The majority of lending institutions, not just the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, then the asset could be taken over by the lender. In essence, it’s an opportunity to secure new financing by using the value of what you already own.
Do I need security to get a business loan?
For loans that exceed $150K, the requirement for asset security is not required prior to the loan’s access however, we do require the personal guarantee. In the event that you fulfill the terms of your loan (as detailed in your loan contract) Asset security will never be required. For loans of over $150K generally, there is the option of a personal ensure and security in the form a charge over assets.