FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Banksia Grove Small Business Loans
Tell me how you are able to avail the Banksia Grove Small Business Loans
Banksia Grove unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from an traditional business loan?
You can apply to your Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and the money could be available in just 24 hours. Traditional company loans reference an interest rate per annum as well as other fees and charges. The business loan is a loan that is priced upfront which means you be aware of the total amount payable including any fees, charges or charges. This is then broken down into either a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for almost every business need, such as the management of cash flow, business remodels and marketing to purchase inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
Concerning Larger Banksia Grove Business Loans
What is the Larger Banksia Grove Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which 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 loan of this size the business needs to be operating for a minimum of 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funds be used for?
A large business loan can be used for almost any business reason, such as company renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It is usually by taking a charge on assets, and may include registering this on the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is general in nature, rather than defining the security for a particular asset. The person who is signing the guarantee is personally liable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR grants preference over private property granted depending on the date that a security interest was registered.
Caveats are legal document that is filed to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan of $250,000 or more we can offer an initial pre-approval in order to ease the process. It is possible 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 assessment that includes the answer to a series of financial well-being questions. This is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you might receive could be based on different conditions.
Application process
Are I eligible for funding?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (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 quick and simple. Simply complete the online form within a couple minutes, and an experienced business expert in lending will be in touch to help you.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within one hour – as long as you apply during quality company time and let us utilise the bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statement, we’ll offer an answer within an company day.
For the Larger Business Loan ($100K to $500K) we could be in a position to provide you with a conditional pre-approval within about 6 hours. After you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some offers have been approved in the space of 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours. Also, allow us to use the advanced bank verification system link to instantly confirm your bank details online. If you opt to upload copies of your bank statements , it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide a response in one hour, provided you apply in normal business times and you allow us to use the bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide an answer in just one business day.
If you are applying for Larger Business Loans ($100K or more) we could be in a position to offer you with conditional pre-approval within six hours. Once 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 circumstances of each application. Some offers have been approved within less than 24 hours.
The most effective method would be to ensure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to confirm your bank details online. If you opt to upload duplicates of your banking statement, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount, we look at a variety of factors that determine your well-being for your business and the level of the repayments your business will be able to support. The total amount of your loan will depend on the specifics of your business.
If you apply for a particular amount, we will consider a number of variables to assess how much we can lend you such as well-being of your business as well as the amount of repayments your business can afford. The amount you receive from the loan will be determined by the particular circumstances that are unique to your business.
Fees & repayments
What is the cost for a business loan?
If you decide to request one of our company credit, we’ll assess the risk profile for your business and provide you with a tailored offer that includes loan amount, term and interest rates. This business loan is a loan that is priced upfront therefore you will be aware in advance of the total amount payable 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 a variety of variables like the amount to be borrowed, the business assets the money are used to purchase, the industry the company operates in, how long the company is in operation for, what percentage of the company has enough cash flow to support the loan, and also the overall well-being or financial standing of the company.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much it is that you need to pay, and when, right from the very first day. There’s no compounding interest and there are no additional charges (as long as you make your payments punctually).
We don’t charge an application fee. You are able to get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated in 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 amount of loan.
Can I pay off the loan earlier?
You can choose to repay the total amount of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful company credit professionals. The specialists will provide you with details on repayment as well as an early payout amount. This will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of the early payout and 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To ensure you do not miss repayments and to fit in with your cash flow cycle we offer repayments either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about how we collect data, process, exchange and safeguard your data, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We use an advanced bank verification system to instantly verify the bank account details online. This allows us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner makes use of an asset they own to make a loan. The asset may be an individual asset, such as the family home or a company asset such as a vehicle or other piece of machinery.
The majority of lenders, including the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, your assets could be transferred to 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 require security for a business loan?
Up to $150K in loans it is not necessary to secure assets before you can access the money however, we do need the personal guarantee. So long as you comply with the loan terms (as specified in your loan contract document) the security of assets will never be required. If you take out loans in excess of $150K typically, you will need a personal guarantee and security in the form an asset charge.