FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Pickering Brook Small Business Loans
Tell me how you can avail the Pickering Brook Small Business Loans
Pickering Brook unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from a traditional company loan?
The application for the Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and funds may be on your account within 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. We offer a business loan is a loan that is priced upfront therefore you’ll be aware of the amount you will have to pay, including any fees, interest or charges. This is then divided into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business reason, such as managing cash flows, business remodels and marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
About Larger Pickering Brook Business Loans
What is the Larger Pickering Brook Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been in operation for at least 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funds for?
A larger business loan can be used for almost all company reason, such as business renovations, to purchase equipment or inventory or as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. It’s in the form of a charge over assets and can be registered in the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is generally based rather than defining the security for a particular asset. The person signing the ensure is personally liable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR gives the priority of personal property granted in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal form of document to offer an official notice of a claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan of $250K or more it’s possible to offer an initial pre-approval in order to make the process. It is possible to make this decision without credit checks and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial well-being questions. It is not an offer of credit or guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you receive could be based on different terms.
The application process
Do I have the right to receive funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Just complete the online application in few minutes and a dedicated company loan specialist will be in touch to guide you.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s License) and an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, and interim current financial year financials as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we typically provide an answer in just one hour if you submit your request within quality business times and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll offer a decision in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be able to provide you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some offers have been approved within the space of 24 hours.
The fastest way can be ensure you apply during normal company hours. Also, allow us to use the advance bank verification link to verify your bank account information online. If you choose to send us documents from your account statements it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour – provided you make your application within standard business hours and permit us to use the bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements, we are able to offer a decision in as little as an business day.
For Larger Business Loans ($100K or more) We may be capable of offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some transactions have received approval within just 24 hours.
The fastest method can be make sure you apply during standard business hours, and let us use the sophisticated bank verification to instantly verify your bank information online. If you decide to send us copies of your bank statements, it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a particular amount, we look at a variety of aspects that determine how much we can lend you health of the company as well as the amount of the repayments your business can afford. The total amount of your loan will be contingent on the specifics of your business.
When you make an application for a particular amount, we consider a variety of variables to determine how much we can lend you such as well-being of your company and the extent of the repayments your business can support. The total amount of your loan will depend on the particulars of your company.
Fees & repayments
How do you charge for an company loan?
If you decide to make an application for our company loan, we will assess the risk assessment of your business and offer you with a tailored proposal that includes the amount of the loan, the duration and the interest rates. It is a business loan is an upfront cost loan which means you know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I’m charged?
Business loan interest rates differ based on various factors such as the amount that is borrowed, the company assets the money will be used for, the industry the business is in, how long the company has been in operation for, what percentage of the business has enough cash flow to fund the loan, and the overall health and creditworthiness of the company.
What are the cost?
There are no hidden costs with our business loans, and you’ll know exactly how much it is that you need to pay and when, from the first day. There’s no compounding interest, and no extra fees (as as long as you pay your payments in time).
We do not charge an application fee. You can make an application for loans without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Do I have the option of paying off the loan early?
You can decide to repay the entire amount of your loan at any point in time.
If you do decide to do this please contact our helpful company lending professionals. The experts will provide you with the details of your repayment along with an early payout estimate. It will be calculated using the sum of the principal remaining plus any accrued interest as of the time of early payment and 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing payments and to work with your cash flow general, we offer repayments that are either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing the ways we gather, use, exchange and ensure the security of your information is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We utilise a sophisticated bank verification system to immediately confirm your bank account information online. This allows us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an company owner utilises the assets they have to obtain the funds for a loan. The asset could be an individual asset, such as the family home, or an business asset such as a vehicle as well as a piece of machine.
The majority of the lenders not just the big banks, tend to secure loans against an asset. If you are having difficulty paying back the loan, the asset could be offered for sale by the lender. In essence, it’s the process of securing additional financing using the worth of the asset you already own.
Do I need security to get an company loan?
For loans that exceed $150,000, no asset security is required before you are able to access the money, however we do need an individual guarantee. If you adhere to the terms of your loan (as specified in your loan contract) the security of assets is not needed. For loans of over $150K generally, you can get the option of a personal ensure and security is provided in the form of a charge over assets.