FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Bardia Small Business Loans
Tell me more about Bardia Small Business Loans
Bardia unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from the traditional company loan?
You can apply for this Small Business Loan in under 10 minutes by phone. You will receive a same day response and the funds could be on your account within 24 hours. Traditional business loans have an interest rate per annum as well as other fees and charges. We offer a business loan is a cash-based loan so you will be aware of the total amount payable including any interest, fees or charges. This is then divided into weekly or daily payment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any business purpose including control of cash flow company improvements, advertising for purchasing inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
About larger Bardia Business Loans
What is the Larger Bardia Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to be in operation for at least 3 years, and have an annual income of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funds be used for?
A Business Loan of a larger size can be used for nearly every business purpose including company improvements, purchasing equipment or inventory, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually by taking a charge against assets and can include the registration of this with the PPSR or the registration of as a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is generally based rather than defining security over a particular asset. The person who is signing the ensure is personally liable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR grants the priority of personal property granted according to the date the security interest was registered.
Caveats are legal document lodged to provide the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan of more than $250K 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 your initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial health checks. This is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you may receive may be subject to different terms.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a few minutes and an experienced business loan specialist will be in touch to help you.
To apply for up $100,000 you’ll need ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent, 12 months of bank statements, IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we can often provide a response in one hour if you apply in quality business time and allow us to utilise the bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we are able to provide an answer in just an business day.
For the Larger Business Loan ($100K to $500K) we might be capable of provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Some agreements have been approved in just 24 hours.
The quickest method is to ensure you apply during normal business hours. Also, let us use the advanced bank verification system to instantly confirm your bank details online. If you send us duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) We can usually offer an answer within an hour if you apply during standard business timings and you allow us to use the advanced bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements we can provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) We may be likely to offer you with a conditional pre-approval within six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Certain transactions have received approval in just 24 hours.
The quickest method can be ensure you apply during normal business hours. Also, allow us to use the advance bank verification link to check your bank’s information online. If you upload duplicates of your banking statement, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount, we look at a variety of factors that determine the health of the business and the amount of repayments your business will be able to support. The total amount of your loan will be contingent on the specifics for your business.
If you apply for a specific amount we look at a range of aspects to assess the well-being for your business and the amount of repayments that your business will be able to support. 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 our business financing, we will assess the risk profile that you have for your company and provide you with a tailored offer including the amount of loan, the term and interest rates. A company loan is an upfront-priced loan therefore you will be aware in advance of the total amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I am charged?
Business loan interest rates vary due to factors including the amount borrowed, what business assets the funds are used to purchase, the industry the company operates in, how long the business has been operating, whether the company has sufficient cash flow to cover the loan, as well as the overall well-being or creditworthiness of the company.
What are the costs?
There are no hidden fees for our business loans, and you’ll know exactly how much you’ll be required to pay, and at what time, from day one. There’s no compounding interest, and no extra fees (as as you make your payments in time).
We do not charge an application fee. You can apply for a loan without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay out the loan early?
You may choose to pay back the entire amount of your loan at any point in time.
If you do decide to do this please speak to our friendly company loans specialists. We will provide you with the details of your repayment and an early payment figure. This will be calculated as the sum of the principal balance and the accrued interest up to the date of early payout, plus 1.5% of the principal remaining as well as any outstanding fees.
What are the repayment methods?
To make sure you do not miss repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and being clear about the ways we gather information, use it, and exchange it, as well as protect 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 standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We use an advanced banking verification system to immediately verify your bank account details online. This allows us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an company owner borrows from an asset they own to secure a loan. The asset can be either an asset belonging to the personal, like the family home, or an company asset such as a truck or piece or equipment.
The vast majority of banks, not just the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, the asset might be taken over by the lender. In essence, it’s an opportunity to secure additional financing taking advantage of the value of what you already own.
What do I need security to get an business loan?
Up to $150,000 in loans there is no requirement for asset security before you are able to access the money however, we do require a personal guarantee. As long as you follow the loan terms (as detailed in the loan contract), asset security is not required. If you take out loans in excess of $150,000 typically, you will need a personal guarantee and security in the form the charge of assets.