FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Bedford Small Business Loans
Tell me about the Bedford Small Business Loans
Bedford unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from an traditional company loan?
Apply to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and have the funds on your account within 24 hours. Traditional business loans refer to an annual interest rate along with other charges and fees. We offer a company loan is an upfront priced loan and you’ll be aware of the total amount payable including the interest, fees and charges. Then, it is divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company purpose including managing cash flows, company improvements, advertising to purchase inventory, new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Bedford Business Loans
What is the Larger Bedford Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to be in operation for at least 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funds for?
A large business loan can be used for almost every business use, including business improvements, purchasing new 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 is secured?
Asset security is needed for accessing funds over $150,000. It is usually in the form of a charge on assets, and may be registered with the PPSR or registering a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature, rather than stating the security for a particular asset. The person signing the ensure is personally accountable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date the security interest has been registered.
The caveat can be described as a formal document filed to offer the public notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K it is possible to offer an initial pre-approval to make the process. We might be able to get this done without a credit verification and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial health checks. This is not an offer or guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer you are offered could have different terms.
The application process
Are I eligible for funding?
You are eligible to apply 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)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Complete the online form in few minutes and an experienced company loan specialist will call you to guide you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) and an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details for application including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, and interim current financial year financials as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour, provided you apply at quality business timings and permit us to use the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements we can offer a decision within an company day.
For the Larger Business Loan ($100K and up) we could be likely to provide you with pre-approval conditional to your application within 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some transactions have received approval in the space of 24 hours.
The most effective method for you to apply is make sure you apply during standard company hours, and allow us to use our advance bank verification to instantly confirm your bank details online. If you opt to upload duplicates of your banking statements it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we usually offer a response in one hour if you submit your request at normal business timings and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can offer an answer in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be likely to provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Some deals have been approved in just 24 hours.
The most effective method can be ensure you apply during normal business hours. You can also allow us to use our advanced bank verification system to instantly verify your bank information online. If you send us the copies of bank statements, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a certain amount we will consider a number of aspects that determine how much we can lend you health for your business and the amount of payments your business can support. The amount you receive from your loan will be contingent on the particular circumstances of your business.
When you apply for a particular amount, we look at a range of variables to assess your well-being for your business and the amount of the repayments your business is able to afford. The amount you receive from your loan will depend on the specifics the company.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to make an application for one of our company credit, we will assess the risk assessment that you have for your business and offer an individualised offer including loan amount, term and interest rates. It is a company loan is an upfront priced loan so you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Interest rates for business loans rates differ based on various factors like the amount of money borrowed, what business assets the money will be used for in addition to the industry that the company operates in, the long the business has been in operation and in the event that the business has sufficient cash flow to pay for the loan, and also the general health as well as creditworthiness business.
What are the charges?
There are no hidden fees with our business loans. You’ll know precisely how much you need to pay, and when, from the day you sign up. There’s no compounding interest and there are no additional charges (as as you make your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of the loan in full at any time.
If you do decide to take this route, please call our helpful company credit experts. We will provide you with the details of your repayment as well as an early payout amount. It will be calculated using the sum of the principal remaining plus any accrued interest as of the time of early payment in addition to 1.5% of the principal balance plus any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about how we collect the information we collect, use, share and secure your information, is of huge importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We make use of an advanced bank verification system to instantly verify your bank account information online, allowing us to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner uses the assets they have to make a loan. The asset may be an individual property, such as the family home, or a business property like a truck as well as a piece of machine.
The vast majority of lenders, not just the big banks, tend to secure loans against assets. If you have trouble paying back the loan, the asset might be sold by the lender. In essence it is an opportunity to secure new funding making use of the value of what you already have.
Do I require security to secure a business loan?
For loans up to $150,000 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 specified in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150K typically, you will need the option of a personal ensure and security that is in the form charges on assets.