FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Berowra Small Business Loans
Tell me how you can avail the Berowra Small Business Loans
Berowra unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and funds may be available in just 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. Our company loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any fees, interest or charges. Then, it is divided into a daily or weekly payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company use, including control of cash flow business renovations, marketing to purchase inventory, new equipment, as general working capital and so much more. The loan is not available for personal purposes.
Concerning Larger Berowra Business Loans
What is the Larger Berowra Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to have been trading for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly all business need, including business renovations, purchase of equipment or inventory for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. This is by way of charge against assets and can include registration with the PPSR or the registration of a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is general in nature rather than stipulating security over an asset. The person who signs the ensure is personally liable if the business creditor is unable to pay back 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 that are registered for personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date a security interest that is registered.
An affidavit is an official form of document to provide an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan of $250K or more we can offer a preliminary pre-approval to help ease the process. We might be able to do this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health questions. This is not an offer of credit or guarantee of funds. 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
Are I eligible for funding?
You may apply for an business 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 business (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form in just a few minutes, and a dedicated business loan specialist will call you to guide you.
To be eligible for up to $100,000 you’ll need the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent and 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually provide an answer within one hour – as long as you submit your request within quality business timings and allow us to use 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 can provide a decision within an business day.
For Larger Business Loans ($100K up to $500,000) we could be in a position to provide you with conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Certain transactions have received approval in 24 hours.
The quickest method would be to ensure you apply during normal company hours. Also, allow us to use the modern bank verification link to confirm your bank details online. If you opt to upload duplicates of your banking statement, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer in just one hour – provided you apply during standard business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statements, we are able to provide the decision in just an business day.
For the Larger Business Loans ($100K and up) we might be in a position to provide you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Some agreements have been approved in less than 24 hours.
The fastest method is to make sure you apply during normal business hours. Also, allow us to use the advance bank verification link to verify your bank information online. If you decide to upload duplicates of your banking statements it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a certain amount we look at a variety of aspects in order to assess the health for your business and the amount of repayments that your company can support. The total amount of your loan will be contingent on the particular circumstances for your business.
When you make an application for a set amount, we take into consideration a variety of elements to assess the health for your company and the extent of repayments that your business is able to afford. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
What is the cost for an business loan?
If you decide to request the business loan, we will assess the risk assessment of your company and offer you with a customised offer that includes the loan amount, the terms and interest rates. The business loan is an upfront-priced loan so you will know in advance the total amount payable including any charges or interest.
What determines the rate that I’m charged?
The interest rates on business loans rates depend on several factors including the amount of money borrowed, the company assets the funds will be used for, the industry the business is in, how long the business has been in operation for, what percentage of the company has enough cash flow to support the loan, as well as the overall well-being or creditworthiness of the business.
What are the cost?
There aren’t any hidden charges with our business loans, and you’ll know exactly how much you’ll need to pay, and when, right from the first day. There’s no compounding and there are no additional charges (as long as you are able to make your payments punctually).
We do not charge an application fee. You can apply for a loan no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan in advance?
You can repay the total amount of your loan early at any time.
If you decide to take this route, please talk to one of our helpful business loans professionals. They will offer you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal balance and any accrued interest at the time of early payout, plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
To make sure you do not miss repayments and to fit in with your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being transparent about the ways we gather the information we collect, use, share and protect your information, is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We use an advanced bank verification system that allows you to immediately verify your bank account information online to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner uses an asset they own to secure the loan. The asset could be an asset belonging to the personal, like the family home, or a company property like a truck as well as a piece of machine.
The vast majority of banks, even the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan then the asset could be sold by the lender. In essence it’s means of securing additional financing taking advantage of the value of what you already own.
What do I need security to get a company loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money However, we require a personal guarantee. need an individual guarantee. As long as you follow your loan obligations (as detailed in the loan contract), asset security is not needed. If you take out loans in excess of $150,000 generally, there is an individual ensure and security in the form of charges on assets.