FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Jane Brook Small Business Loans
Let me know about the Jane Brook Small Business Loans
Jane Brook unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and have the funds available in just 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. We offer a business loan is a pre-paid loan therefore you’ll be aware in advance of the total amount payable including any fees, charges or charges. Then, it is broken down into a daily or weekly payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company need, such as cash flow management, business renovations, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan is not available for personal reasons.
About the Larger Jane Brook Business Loans
What is the Larger Jane Brook Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan that is this large the company needs to have been trading for at least 3 years and have an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large company loan can be used to fund almost all company purpose including company improvements, purchasing inventory or new equipment for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This can be done in the form of a charge over assets, and may be registered on the PPSR or making a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally in nature rather than stating security over a particular asset. The person signing the ensure is personally accountable if the company creditor is unable to re-pay 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 registered in respect of personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted depending on the date that a security interest that is registered.
A caveat is a legal document filed to offer the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan that is greater than $250K we can offer an initial pre-approval that will help make the process. We might be able to make this decision without a credit verification and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial well-being checks. It is in no way an offer, nor is it a guarantee of financing. A conditional approval is subject a full credit assessment and any offer that you receive could be based on different terms.
The application process
Are I eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a couple minutes, and an experienced business credit specialist will be in touch to guide you.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s License) along with a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent as well as 12 months of bank records, IRD statements, last 2 years finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within one hour – as long as you make your application during standard company timings and let us make use of the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statements we can provide a decision within just 1 business day.
If you are applying for a Larger Business Loan ($100K or more) we could be likely to provide the conditional pre-approval within six hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved within less than 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal business hours, and allow us to use our modern bank verification link to instantly verify your bank information online. If you send us copies of your bank statements , it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour, provided you make your application in standard business hours and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements we can offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K and up) We may be in a position to provide you with conditional pre-approval in around six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Certain transactions have received approval within 24 hours.
The fastest way is to ensure you apply during standard business hours and allow us to use the sophisticated bank verification to instantly verify your bank information online. If you opt to upload the copies of bank accounts, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount we look at a variety of factors that determine how much we can lend you well-being of the business and the extent of repayments your company is able to afford. The total amount of your loan will depend on the particular circumstances for your company.
If you apply for a set amount, we will consider a number of factors to determine the well-being of the business and the level of the repayments your company can afford. The total amount of your loan will be contingent on the specific circumstances the business.
Fees & repayments
How much should you charge for an business loan?
When you make an application for our company financing, we will assess the risk assessment the company and offer you with a customised proposal that includes loan amount, term and the interest rates. It is a business 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 pay?
The interest rates on company loans rates depend on a variety of factors such as the amount that is borrowed, what company assets the funds are used to purchase, the industry the business is in, how long the company is in operation as well as whether the business has enough cash flow to cover the loan, and general well-being and creditworthiness of the company.
What are the fees?
There aren’t any hidden costs for our company loans, and you’ll know exactly how much you’ll need to pay and when, from the 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 request a credit loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan earlier?
You can repay the total amount of your loan in full at any time.
If you choose to do this please speak to our friendly business loan professionals. They’ll provide you with repayment details and an early payout figure. It will be calculated using the total of the principal balance and any accrued interest at the time of the early payout and 1.5 percent of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide payments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my data be secure?
Security of your data, and being transparent about the ways we gather, use, exchange and secure your information, is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We employ a highly sophisticated bank verification system link to immediately verify your bank account details online to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner uses the assets they have to get the loan. The asset can be an asset belonging to the personal, like the family home, or a company asset such as a vehicle or other piece of machinery.
The majority of lenders, not just the largest banks, are inclined to secure loans against an asset. If you’re struggling to pay back the loan, then your asset may be taken over by the lender. In essence, it is means of securing new funding making use of the value of what you already have.
Are I require security to secure a company loan?
Up to $150K in loans the requirement for asset security is not required in advance to gain access to the funds However, we do need a personal guarantee. So long as you comply with the terms of your loan (as specified in the loan contract) the security of assets will never be required. For loans of over $150,000 generally, you can get an individual guarantee and security in the form of charges on assets.