FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Bull Creek Small Business Loans
Tell me how you are able to avail the Bull Creek Small Business Loans
Bull Creek unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
The application to get this Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and the money could be in your account within 24 hours. Traditional business loans have an annual rate of interest plus other fees and charges. The business loan is an upfront priced loan and you’ll know in advance the total amount payable including any fees, charges or charges. This is then divided into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business need, such as cash flow management, company improvements, advertising, to purchase inventory or new equipment, for general working capital, and much more. The loan is not available for personal reasons.
About the Larger Bull Creek Business Loans
What is the Larger Bull Creek Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
A 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 that is this large the company needs to be trading for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be used for?
A large business loan can be used for nearly every business use, including business renovations, purchase of equipment or inventory or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It’s by way of charge over assets, which could also include registration in the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is generally in nature rather than defining security over a particular asset. The person who is signing the ensure is personally liable in the event that the company borrower is unable to repay 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 which are registered with respect to personal property (including objects or assets). The PPSR permits preference over private property assigned according to the date a security interest has been registered.
A caveat is a legal document that is filed to provide notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval that will help ease the process. It is possible to do this without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial health questions. It’s neither an offer nor a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you receive could be on different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and an experienced company lending specialist will be in touch to assist you.
To apply for up to $100,000 you’ll require proof of identity (valid Driver’s License) and an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer in just one hour if you make your application in standard business hours and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we’ll be able to offer the decision within 1 company day.
For the Larger Business Loan ($100K and up) we may be capable of offer you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved in just 24 hours.
The quickest way to apply is to ensure you apply during normal company hours, and allow us to use our advance bank verification to verify your bank information online. If you choose to upload documents from your account accounts, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour – provided you make your application within standard business hours and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statement, we’ll offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K and up) we might be likely to offer you with conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Some offers have been approved in the space of 24 hours.
The quickest method can be ensure you apply during normal business hours. Also, permit us to use the modern bank verification link to verify your bank account information online. If you choose to upload duplicates of your banking statements, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount we take into consideration a range of factors for determining what is the health of the company as well as the amount of the repayments your business will be able to support. The total amount of your loan will be contingent on the particular circumstances of your business.
When you apply for a particular amount, we will consider a number of aspects to determine the health of your company as well as the amount of the repayments your company can support. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for a company loan?
When you apply for business loans with us company loans, we’ll assess the risk assessment of your company and offer an individualised offer, including the amount of the loan, the duration and the interest rates. A company loan is an upfront priced loan so you will know the exact amount you will have to pay, including charges or interest.
What determines the rate that I will be charged?
The interest rates on company loans rates vary due to variables like the amount to be borrowed, what business assets the funds will be used for and the sector the business is operating in, how long the business has been running for, whether the company has enough cash flow to fund the loan, and overall health or financial standing of the business.
What are the costs?
There aren’t any hidden charges with our company loans. You’ll know exactly how much you need to pay, and when, right from day one. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You are able to get a cash loan with without any upfront costs or the obligation to take action.
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% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of your loan early at any time.
If you decide to do this please speak to our friendly company credit professionals. We will provide you with repayment details as well as an early payout amount. This is calculated as the total of the principal amount remaining plus any accrued interest as of the date of early payout in addition to 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To make sure you do not miss due dates and also to be in line your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about how we collect information, use it, and exchange it, as well as protect your information, is of huge importance and is an essential part 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 protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We make use of an advanced banking verification system to instantly verify your bank account information online to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from an asset they own to make 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 vehicle or piece of equipment.
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, the asset could be taken over by the lender. In essence, it is a way of securing additional financing making use of the value of what you already own.
Are I need security to get a company loan?
For loans that exceed $150,000, it is not necessary to secure assets upfront to access the money However, we do require the personal guarantee. So long as you comply with the terms of your loan (as stated in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150K typically, you will need the option of a personal guarantee and security that is in the form charges on assets.