FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Balcatta Small Business Loans
Let me know what you think of the Balcatta Small Business Loans
Balcatta unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the money could be on your account within 24 hours. Traditional company loans reference an annual rate of interest together with additional fees and charges. This business loan is a loan that is priced upfront and you’ll be aware in advance of the amount you will have to pay, including the interest, fees and charges. Then, it is divided into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including the management of cash flow, company renovations, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available to fund personal expenses.
About larger Balcatta Business Loans
What is the Larger Balcatta Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been operating for at least three years with an annual turnover of $700K. The applicant must also 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 to demonstrate at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used for nearly every company reason, such as business renovations, to purchase equipment or inventory or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This can be done by taking a charge on assets and can include registering 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 general in nature, rather than stating the security for a particular asset. The person who is signing the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR grants preference over private property assigned in accordance with the date on which a security interest was registered.
Caveats are legal document lodged to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan of $250K or more we may be able to provide an initial pre-approval to simplify the process. We may be able to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial health checks. It’s in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer that you receive could be subject to different terms.
The application process
Can I be eligible for funding?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Complete the online form in few minutes and a dedicated company credit specialist will call you to guide you through the process.
To apply for up to $100,000 you’ll require proof of identity (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K-$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: Application details including credit consent and 12 months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) We can usually provide an answer within an hour if you apply during standard company timings and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements , we are able to provide a decision within the span of one company day.
For the Larger Business Loan ($100K or more) we could be likely to offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Certain offers have been approved in 24 hours.
The quickest way to apply can be make sure you apply during standard business hours and allow us to use the modern bank verification to verify your bank information online. If you choose to upload duplicates of your banking statement, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we can often offer an answer within one hour – as long as you make your application at standard business time and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your banking statements, we will be able to offer an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to offer you with a conditional pre-approval within 6 hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain offers have been approved in the space of 24 hours.
The most efficient method can be ensure you apply during standard business hours, and let us use the advance bank verification link to instantly check your bank’s information online. If you upload copies of your bank statements it can take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we will consider a number of variables that determine what is the health of the company and the amount of payments your business is able to afford. The total amount of your loan will depend on the specific circumstances for your company.
When you apply for a certain amount, we look at a range of factors to determine your well-being of your company and the level of payments your business can support. The total amount of the loan will be determined by the particular circumstances for your company.
Fees & repayments
What is the cost for a company loan?
If you decide to make an application for our business financing, we will assess the risk assessment of your company and offer you with a customised proposal that includes loan amount, term and interest rates. The business loan is an upfront priced loan and you’ll know the exact amount payable including any costs, fees, or interest rates.
What determines the amount I pay?
Business loan interest rates vary due to factors including the amount of money borrowed, the company assets the money will be used for as well as the field the company is operating in, how long the company has been in operation for, what percentage of the business has sufficient cash flow to pay for the loan, and the general well-being or financial standing of the company.
What are the fees?
There aren’t any hidden charges for our company loans. You’ll know exactly how much you 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 on time).
We don’t charge an Application Fee. You can get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay out the loan earlier?
You can decide to repay all of your loan early at any time.
If you decide to take this route, please contact our helpful business credit professionals. The specialists will offer you with repayment details along with an early payout estimate. This will be calculated as the sum of the principal remaining plus any accrued interest as of the time of early payment plus 1.5 percent of the remaining principal and any fees that remain unpaid.
How do repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow standard, we provide payments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about the ways we gather, use, exchange and protect your information, is of paramount importance 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 customer security and privacy. We utilise a sophisticated bank verification system link to immediately verify your bank account details online so we can offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner makes use of an asset they own to make the loan. The asset can be either a personal asset like the family home, or it could be a business asset such as a vehicle or other piece of machinery.
The vast majority of the lenders even the largest banks, are inclined to secure loans against assets. If you have 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 value of what you already have.
What do I need security to get an business 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 the personal guarantee. If you adhere to your loan commitments (as stated in your loan contract document) the security of assets is not needed. For loans that exceed $150,000, typically, you will need a personal guarantee and security in the form a charge over assets.