FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Henley Beach Small Business Loans
Let me know about the Henley Beach Small Business Loans
Henley Beach unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an traditional company loan?
You can apply for this Small Business Loan in under 10 minutes over the phone, receive an instant response and have the funds available in just 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. The business loan is a cash-based loan so you will know ahead of time the total amount due, which includes any interest, fees or charges. This is then broken down into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company use, including control of cash flow business remodeling, marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan is not available for personal reasons.
About larger Henley Beach Business Loans
What is the Larger Henley Beach Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been operating for at least three years, and have an annual income of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly every company use, including company remodeling, buying new equipment or inventory, as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. This can be done in the form of a charge against assets and can include registering this through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature, rather than specifying security over a particular asset. The person signing the guarantee is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR allows the priority of personal property granted according to the date the security interest that is registered.
A caveat is a legal document lodged to offer the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan of more than $250,000 we can offer an initial pre-approval that will help ease the process. It is possible to make this decision without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial well-being checks. This is not an offer or guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer you receive could be based on different terms.
The application process
Do I qualify for funds?
You may be eligible for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form in just a few minutes, and an experienced company lending specialist will contact you to help you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent twelve months bank statement, an IRD statement and the last two years’ finalised financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we can often provide an answer within an hour – as long as you apply at quality company time and let us utilise the bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements , we will be able to offer an answer in as little as an company day.
For the Larger Business Loan ($100K to $500K) we might be able to provide the conditional pre-approval within about 6 hours. After you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some deals have been approved in the space of 24 hours.
The most efficient method is to ensure you apply during standard company hours, and permit us to use the advance bank verification link to verify your bank information online. If you opt to send us the copies of bank statements it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour – as long as you apply during normal business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking 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 to $500K) We may be in a position to provide you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain transactions have received approval within just 24 hours.
The fastest way would be to make sure you apply during normal business hours, and allow us to use our advance bank verification link to verify your bank information online. If you choose to upload copies of your bank statements, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of aspects to determine your health of your company as well as the amount of payments your business 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 submit an application for a specific amount we take into consideration a variety of elements to assess the well-being of your business as well as the amount of repayments that your business is able to afford. The total amount of your loan will be contingent on the particular circumstances for your business.
Fees & repayments
What is the cost for the cost of a business loan?
When you make an application for one of our company financing, we will assess the risk assessment of your business and provide an individualised offer including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront priced loan which means you know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I am charged?
Interest rates for company loans rates depend on several factors like the amount of money borrowed, the business assets the money are used to purchase in addition to the industry that the business is in, how long the company has been operating and what percentage of the business has sufficient cash flow to support the loan, as well as the general well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll be aware of the amount it is that you need to pay, and when, from the day you sign up. There’s not any compounding interest and no extra fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You can get a cash loan with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan early?
You can choose to repay the total amount of your advance loan at any time.
If you decide to take this route, please talk to one of our helpful company loan professionals. We will offer you with repayment details and an early payout figure. This will be calculated as the sum of the remaining principal amount plus any accrued interest as of the date of early payout plus 1.5% of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow routine, we provide payments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing how we collect, use, exchange and ensure the security of your information is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated bank verification system link to instantly verify the bank account details online to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an business owner borrows from an asset they own to make the funds for a loan. The asset can be an individual asset, such as the family home or an business property like a truck or piece or equipment.
The majority of lending institutions, including the largest banks, are inclined to guarantee loans against assets. If you are having difficulty paying back the loan then the asset could be transferred to the lender. In essence, it is the process of securing new financing taking advantage of the value of what you already have.
Should I require security for an business loan?
For loans that exceed $150K, no asset security is required before you are able to access the money but we do require an individual guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract document) the security of assets is not needed. If you take out loans in excess of $150K generally, there is personal ensure and security is provided in the form of the charge of assets.