FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Brown Hill Creek Small Business Loans
Let me know what you think of the Brown Hill Creek Small Business Loans
Brown Hill Creek unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from a traditional business loan?
Apply for the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and the funds could be on your account within 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. This business loan is a cash-based loan therefore you’ll know in advance the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into a daily or weekly installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business need, such as the management of cash flow, company remodeling, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Brown Hill Creek Business Loans
What is the Larger Brown Hill Creek Business Loan?
The Larger Business Loan is a larger loan size to support business 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 in order to accommodate the flow of cash.
How is the Origination Fee calculated?
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?
To be eligible for a credit that is this large the company needs to be in operation for at least 3 years with an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funds be used for?
A larger business loan can be used to fund almost any company reason, such as business renovations, to purchase equipment or inventory, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually by way of charge over assets, and could include registering this with the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is general in nature, rather than stating security over a particular asset. The person signing the ensure is personally liable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR gives priority over personal property to be granted according to the date the security interest that is registered.
An affidavit is an official document that is filed to offer the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of $250K or more it is possible to offer a preliminary pre-approval to help simplify the process. It is possible to apply for this without credit checks and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial health checks. It’s neither an offer nor a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you may receive may be on different conditions.
The application process
Do I have the right to receive funds?
You can apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a couple minutes, and a dedicated business lending specialist will call you to guide you through the process.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s Licence), an active 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 IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent twelve months of bank records, IRD statements Last 2 years’ finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually provide an answer within one hour, provided you submit your request within standard company timings and allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements , we are able to provide the decision in as little as one company day.
For the Larger Business Loan ($100K to $500K) we may be in a position to offer the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved within 24 hours.
The quickest method would be to make sure you apply during normal company hours, and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload the copies of bank statements it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer in just one hour, provided you submit your request within normal business times and let us use the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statement, we’ll provide an answer in as little as one business day.
For the Larger Business Loans ($100K and up) we may be capable of provide you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours, and let us use the modern bank verification to instantly verify your bank information online. If you decide to send us the copies of bank statements it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a specific amount we will consider a number of factors for determining what is the well-being of the company as well as the amount of payments your business can afford. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
When you submit an application for a particular amount, we will consider a number of factors to assess your health of the business and the amount of the repayments your business can afford. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to request the business loan, we will assess the risk profile for your business and provide you with a customised offer, including the amount of the loan, the duration and interest rates. This company loan is an upfront-priced loan therefore you will know the exact amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I am charged?
Interest rates for company loans rates vary due to factors like the amount of money of money borrowed, the business assets the money are used to purchase and the sector the business is operating in, how long the company is in operation for, how long the business has enough cash flow to fund the loan, as well as the overall health or creditworthiness of the business.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll know precisely how much it is that you be required to pay and when, from the very first day. There’s no compounding interest, and there are no additional charges (as long as you make your payments in time).
We do not charge an application fee. You are able to apply for a loan with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay off the loan in advance?
You can choose to repay the entire amount of the loan at any point in time.
If you are deciding to pursue this option, please contact our helpful company credit experts. The specialists will provide you with the details of your repayment and an early payout figure. This will be calculated as the total of the principal remaining and the accrued interest up to the time of early payment in addition to 1.5% of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing payments and to work your cash flow schedule, we offer repayments that are either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about the ways we gather, use, exchange and safeguard your data, 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 utilise industry-recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to customer security and privacy. We employ a highly sophisticated bank verification system link to immediately verify the bank account details online. This allows us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from the assets they have to obtain a loan. The asset may be an individual property, such as the family home, or it could be a company asset such as a truck or other piece of machinery.
The vast majority of lenders, even the banks with the biggest size, prefer to secure loans against assets. If you’re struggling to pay back the loan, your asset may be transferred to the lender. In essence, it’s means of securing additional financing using the worth of the asset you already have.
Should I need security to get a business loan?
For loans that exceed $150K, it is not necessary to secure assets before you are able to access the money however, we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as specified in your loan contract document), asset security will never be needed. For loans of over $150K generally, you are able to get the option of a personal ensure and security is provided in the form of a charge over assets.