FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Burton Small Business Loans
Tell me more about Burton Small Business Loans
Burton unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from a traditional company loan?
Apply to the Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and the money could be on your account within 24 hours. Traditional business loans reference an interest rate per annum as well as other fees and charges. The business loan is a pre-paid loan therefore you’ll be aware in advance of the total amount payable including any fees, interest or charges. Then, it is broken down into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company use, including control of cash flow company remodeling, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Burton Business Loans
What is the Larger Burton Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to have been operating for at least three years and have an annual turnover of $700,000. Your company must belong to 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 of proving at least 12 months of trading.
What can the funds be used for?
A larger company loan can be used for nearly every company need, including business improvements, purchasing inventory or new equipment, as 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 required to access funding over $150,000. It is usually in the form of a charge over assets and can include the registration of this with the PPSR or filing as a caveat.
A personal or director’s guarantee is a promise to repay a loan which is general in nature rather than specifying security over a particular asset. The person who signs the guarantee is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR allows 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 document filed to offer an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger company loans that is greater than $250K, we may offer an initial pre-approval that will help smooth out the process. We might be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial well-being questions. It is neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you might receive could be based on 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 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in just a few minutes, and an experienced company expert in lending will be in touch to assist you.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s License), an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) We can usually provide an answer within one hour if you submit your request within standard business hours and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we are able to offer a decision in just the span of one business day.
For the Larger Business Loan ($100K to $500K) we may be likely to offer you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval, the turnaround time is 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 24 hours.
The most effective method for you to apply is make sure you apply during standard business hours, and permit us to use the modern bank verification link to instantly confirm your bank details online. If you send us documents from your account accounts, it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour – provided you apply during normal business timings and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statements, we will be able to provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be in a position to provide the conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some deals have been approved within 24 hours.
The most effective method can be make sure you apply during standard business hours. Also, let us use the advanced bank verification system to instantly confirm your bank details online. If you choose to upload copies of your bank statements, it may take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of variables that determine your well-being of your business as well as the amount of the repayments your company is able to afford. The amount you receive from your loan will be contingent on the specifics of your company.
When you make an application for a set amount, we will consider a number of elements to assess how much we can lend you such as health that is your business and the amount of repayments your business can support. The amount you receive from your loan will depend on the specific circumstances of your business.
Fees & repayments
How do you charge for the cost of a business loan?
When you request business loans with us company loans, we will assess the risk assessment the business and provide you with a customised proposal that includes loan amount, term and interest rates. This company loan is an upfront cost loan so you will know in advance the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I pay?
Business loan interest rates vary due to factors such as the amount that is borrowed, the business assets the money will be used for as well as the field the company operates in, the long the business has been in operation and whether the business has enough cash flow to fund the loan, and general well-being or financial standing of the company.
What are the charges?
There are no hidden fees with our business loans, and you’ll know precisely what you be required to pay and when, from the first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan early?
You can repay the total amount of your loan in full at any time.
If you do decide to take this route, please talk to one of our helpful business loans experts. The professionals will provide you with details for repayment and an early payout figure. The figure will be calculated as the sum of the remaining principal amount and accrued interest to the time of early payment, plus 1.5% of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To make sure you do not miss payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about the ways we gather the information we collect, use, share and ensure the security of your information is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We employ a highly sophisticated bank verification system link to instantly verify your bank account information online to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of the assets they have to obtain a loan. The asset may be a personal asset like the family home, or a company asset like a truck or other piece of machinery.
The majority of lenders, not just the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan then your asset may be offered for sale by the lender. In essence it’s the process of securing new funding using the value of what you already have.
What do I need security to get a business loan?
For loans up to $150K there is no requirement for asset security upfront to access the money however, we do need the personal guarantee. As long as you follow your loan commitments (as stated in the loan contract), asset security is not needed. For loans of over $150,000 generally, you are able to get an individual ensure and security that is in the form a charge over assets.