FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Perth Small Business Loans
Tell me how you are able to avail the Perth Small Business Loans
Perth unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from a traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and funds may be on your account within 24 hours. Traditional company loans are based on an annual rate of interest together with additional fees and charges. Our company loan is a cash-based loan so you will know ahead of time the total amount due, which includes the interest, fees and charges. This is then broken down into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as control of cash flow company remodeling, marketing to purchase inventory, new equipment, for general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Perth Business Loans
What is the Larger Perth Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A larger business loan can be used to fund almost any company need, including business renovations, purchase of inventory or new equipment, as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It’s by way of charge against assets, and could include the registration of this in the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally based rather than defining security over an asset. The person who is signing the guarantee is personally accountable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR permits the priority of personal property granted according to the date the security interest has been registered.
A caveat is a legal document lodged to provide the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger company loans of $250K or more it’s possible to offer an initial pre-approval to simplify the process. We may be able to make this decision without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial well-being questions. It’s not an offer or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could be subject to different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for a 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)
- you must demonstrate at minimum 6 months worth of trade (for a 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 complete the online application within a few minutes and a dedicated company expert in lending will call you to help you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s License) along with a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer within an hour if you make your application at standard company hours and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements we can offer the decision in just an company day.
For the Larger Business Loan ($100K and up) we may be capable of offer you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Certain deals have been approved in the space of 24 hours.
The quickest way to apply would be to make sure you apply during normal company hours. Also, let us use the modern bank verification link to verify your bank account information online. If you opt to send us the copies of bank statements , it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour, provided you submit your request in normal business times and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statement, we’ll offer a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we may be able to provide the conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain offers have been approved in the space of 24 hours.
The quickest method is to make sure you apply during standard business hours, and let us use the modern bank verification to verify your bank account information online. If you decide to send us documents from your account statements it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we will consider a number of variables that determine what is the health of your business and the level of the repayments your business will be able to support. The amount you receive from the loan will be determined by the specifics of your business.
When you apply for a certain amount, we consider a variety of elements to determine your well-being of the business and the extent of repayments that your company can support. The total amount of your loan will depend on the specific circumstances of your business.
Fees & repayments
How much do you charge for an business loan?
If you decide to request our company financing, we’ll assess the risk assessment for your company and provide you with a tailored offer, including the loan amount, the terms and interest rates. It is a business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates depend on a variety of factors including the amount borrowed, the company assets the money will be used for and the sector the business operates in, the long the business has been operating, whether the business has enough cash flow to cover the loan, and overall health or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our company loans, and you’ll know exactly how much you need to pay and at what time, from day one. There’s no compounding interest and no extra fees (as as you make your payments on time).
We do not charge an Application Fee. You can get a cash loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can choose to repay all of your advance loan at any time.
If you do decide to take this route, please call our helpful company lending experts. They will offer you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the remaining principal amount and any accrued interest at the time of early payment in addition to 1.5% of the principal remaining as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing repayments and to fit in with your cash flow standard, we offer repayments that are either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about the ways we gather the information we collect, use, share and secure your information, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our customers and security. We use an advanced bank verification system link to instantly verify your bank account information online so we can provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the business owner uses an asset that they own to secure a loan. The asset could be an asset belonging to the personal, like the family home, or it could be a company asset such as a truck or other piece of machinery.
The vast majority of the lenders even the largest banks, are inclined to secure loans against assets. If you’re having trouble paying back the loan, then the asset might be taken over by the lender. In essence it’s the process of securing new financing by using the worth of the asset you already have.
Are I require security for a company loan?
For loans of up to $150K, there is no requirement for asset security in advance to gain access to the funds, however we require a personal guarantee. need an individual guarantee. As long as you follow the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally, you are able to get a personal ensure and security is provided in the form of charges on assets.