FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Balnarring Small Business Loans
Let me know about the Balnarring Small Business Loans
Balnarring unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an traditional company loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes over the phone, receive a same day response and have the funds on your account within 24 hours. Traditional business loans have an interest rate per annum as well as other fees and charges. We offer a company loan is a pre-paid loan which means you be aware in advance of the total amount to be paid, including the interest, fees and charges. This is then divided into weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company purpose including control of cash flow company remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal purposes.
Concerning Larger Balnarring Business Loans
What is the Larger Balnarring Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to be operating for a minimum of 3 years, and have an annual income of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size can be used to fund almost every company use, including business remodeling, buying new equipment or inventory 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 to access funding over $150,000. It’s by way of charge on assets, and could include registering this through the PPSR or registering a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally based rather than stipulating security over an asset. The person who signs the ensure is personally liable in the event that the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register 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 grants prioritisation over property that is personal to be granted according to the date the security interest has been registered.
Caveats are legal form of document to offer the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250K it’s possible to offer an initial pre-approval to ease the process. It is possible to do this without a credit check, and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial well-being checks. This is not an offer or guarantee of financing. Acceptance without condition is subject to an extensive credit evaluation and any offer you receive could be based on different conditions.
Application process
Can I be eligible for funding?
You are eligible to 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 business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (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 few minutes and an experienced company expert in lending will be in touch to guide you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Application details including credit consent twelve months of bank statements, IRD statement and the last two years’ finalised financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often offer an answer within an hour – as long as you make your application at standard company hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statement, we’ll offer a decision in just 1 company day.
For Larger Business Loans ($100K and up) we may be in a position to offer the conditional pre-approval within 6 hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain transactions have received approval in just 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard company hours and allow us to use our modern bank verification link to confirm your bank details online. If you upload duplicates of your banking statements , it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) We can usually provide a response in one hour – provided you make your application within standard business times and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements we can provide an answer in just an business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be capable of offer you with conditional pre-approval in about 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 particular circumstances of each application. Certain transactions have received approval in less than 24 hours.
The most efficient method is to ensure you apply during normal business hours. Also, permit us to use the modern bank verification link to instantly verify your bank information online. If you opt to send us the copies of bank statements, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a specific amount we consider a variety of variables for determining how much we can lend you health of the company and the extent of repayments that your company can afford. The amount you receive from your loan will be contingent on the particular circumstances for your company.
When you submit an application for a certain amount, we will consider a number of factors to assess how much we can lend you such as health of your business as well as the amount of payments your company is able to afford. The total amount of your loan will be contingent on the particulars the business.
Fees & repayments
How much do you charge for an business loan?
When you make an application for our company financing, we’ll assess the risk profile for your company and provide you with a customised offer including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront-priced loan which means you be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for business loans rates vary due to variables like the amount to be of money borrowed, the company assets the money are used to purchase and the sector the business operates in, how long the business has been operating and how long the business has sufficient cash flow to fund the loan, and the general health or financial standing of the business.
What are the fees?
There are no hidden costs with our business loans. You’ll be aware of the amount you’ll need to pay and at what time, from the day you sign up. There’s no compounding interest and no additional fees (as long as you make your payments in time).
We do not charge an application fee. You are able to apply for a loan with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan earlier?
You can repay the entire amount of the advance loan at any time.
If you decide to do this please speak to our friendly company loans specialists. They’ll provide you with repayment details along with an early payout estimate. This is calculated as the total of the principal amount remaining and accrued interest to the date of early payout in addition to 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work with your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect data, process, exchange and protect your information, is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We utilise a sophisticated bank verification system to instantly verify your bank account details online. This allows us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner utilises an asset they own to secure a loan. The asset may be an individual property, such as the family home, or a business property like a truck or other piece of machinery.
The majority of lenders, even the banks with the biggest size, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then the asset could be transferred to the lender. In essence, it is an opportunity to secure new financing by making use of the value of what you already have.
Should I require security to secure a business loan?
For loans that exceed $150K, there is no requirement for asset security in advance to gain access to the funds However, we do need the personal guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans of over $150K typically, you will need the option of a personal guarantee and security in the form of the charge of assets.