FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Perth Small Business Loans
Let me know more about Perth Small Business Loans
Perth unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
Apply to your Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and the funds could be on your account within 24 hours. Traditional business loans have an annual interest rate along with other charges and fees. We offer a business loan is an upfront priced loan and you’ll know in advance the amount you will have to pay, including any interest, fees or charges. Then, it is divided into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company reason, such as managing cash flows, company renovations, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
About larger Perth Business Loans
What is the Larger Perth Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to have been in operation for at least 3 years and have an annual turnover of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funding be utilised?
A large business loan can be used for almost any company need, including company renovations, purchase of equipment or inventory, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. It is usually by taking a charge over assets and can include registration through the PPSR or filing a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is general in nature, rather than stating the security of a specific asset. The person signing the ensure is personally accountable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR permits preference over private property assigned in accordance with the date on which a security interest has been registered.
A caveat is a legal document lodged to provide an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of $250K or more, we may offer an initial pre-approval in order to ease the process. It is possible to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial health questions. It is neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you are offered could be on different terms.
The application process
Can I be eligible for funding?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (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 process for applying is fast and easy. Simply complete the online form within a couple minutes, and a dedicated company credit specialist will call you to guide you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank statements, IRD statement Last 2 years’ finalised financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer in just one hour if you make your application at quality company hours and let us make use of the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements we can offer the decision within 1 business day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of provide you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Some transactions have received approval within 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours and let us use the modern bank verification to verify your bank information online. If you opt to upload the copies of bank statement, it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually offer a response in one hour if you make your application within normal business time and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statements, we are able to provide the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be in a position to provide you with a conditional pre-approval in around 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. Certain deals have been approved within less than 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. Also, allow us to use our advanced bank verification system to instantly verify your bank account information online. If you decide to send us documents from your account statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we consider a variety of aspects to determine your well-being of the business and the extent of the repayments your company can support. The total amount of your loan will depend on the specifics the company.
If you apply for a certain amount, we take into consideration a variety of variables to assess the health of your company and the extent of the repayments your company is able to afford. The total amount of your loan will be contingent on the particular circumstances that are unique to your company.
Fees & repayments
What is the cost for a business loan?
When you apply for one of our company loan, we will assess the risk profile for your business and provide an individualised offer that includes loan amount, term and the interest rates. It is a company loan is an upfront-priced loan which means you know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on a variety of factors such as the amount that is borrowed, the business assets the funds are used to purchase in addition to the industry that the company operates in, the long the business is in operation as well as whether the company has sufficient cash flow to cover the loan, and general health or financial standing of the company.
What are the costs?
There are no hidden costs for our business loans. You’ll know exactly how much it is that you need to pay and when, starting from the day you sign up. There’s no compounding interest and no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can make an application for loans with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan early?
You may choose to pay back the entire amount of your loan in full at any time.
If you do decide to take this route, please call our helpful company lending experts. We will provide you with repayment details and an early payout figure. The figure will be calculated as the total of the principal remaining and accrued interest to the date of early payout, plus 1.5 percent of the principal balance plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect information, use it, and exchange it, as well as safeguard your data, 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 as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We make use of an advanced banking verification system to immediately confirm your bank account information online. This allows us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner borrows from an asset that they own to secure the loan. The asset can be an individual property, such as the family home, or an company asset such as a vehicle or piece of equipment.
The vast majority of the lenders including the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then your asset may be sold by the lender. In essence, it is means of securing new financing by using the worth of the asset you already have.
What do I need security for an company loan?
Up to $150,000 in loans there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. need an individual guarantee. If you adhere to the loan terms (as stated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally, you are able to get a personal guarantee and security that is in the form a charge over assets.
