FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Bend of Islands Small Business Loans
Let me know more about Bend of Islands Small Business Loans
Bend of Islands 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 are either daily or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
The application to the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and funds may be in your account in 24 hours. Traditional business loans refer to an annual rate of interest along with other charges and fees. Our business loan is a cash-based loan which means you know ahead of time the total amount due, which includes the interest, fees and charges. This is then divided into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business reason, such as control of cash flow business remodeling, marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal use.
About larger Bend of Islands Business Loans
What is the Larger Bend of Islands Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to be trading for at least 3 years, and have an annual income of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, 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 funding for?
A Business Loan of a larger size can be used for almost all business need, including business renovations, purchase of new equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This can be done by way of charge over assets and can include registration through the PPSR or making a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally in nature rather than stipulating security over an asset. The person who is signing the ensure is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR permits preference over private property granted depending on the date that a security interest was registered.
A caveat is a legal document lodged to provide an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 we can offer a preliminary pre-approval to help smooth out the process. We might be able to apply for this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial well-being questions. It is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject a full credit assessment and any offer you might receive could be based on different terms.
Application process
Are I eligible for funding?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just complete the online application in few minutes and a dedicated company credit specialist will be in touch to assist you.
To apply for up $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 require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details of the application, including credit consent and 12 months of bank records, IRD statement and the last two years’ finalised financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we usually offer a response in one hour, provided you make your application in standard business hours and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we will be able to provide an answer within one business day.
For Larger Business Loans ($100K and up) we might be capable of provide you with conditional pre-approval within about six hours. Once you’ve 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. Certain offers have been approved within the space of 24 hours.
The fastest way would be to ensure you apply during normal business hours and allow us to use our modern bank verification link to instantly confirm your bank details online. If you send us the copies of bank accounts, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we usually offer a response in one hour – provided you make your application during standard business times 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 within the span of one business day.
For the Larger Business Loans ($100K up to $500,000) We may be likely to provide you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Certain agreements have been approved in 24 hours.
The most efficient method would be to ensure you apply during normal business hours. You can also let us use the modern bank verification link to instantly verify your bank account information online. If you upload copies of your bank accounts, it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of factors to determine your well-being that is your company and the extent of repayments that your company can afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your business.
When you make an application for a specific amount we consider a variety of elements to assess your health for your company and the extent of repayments that your business will be able to support. The total amount of the loan will be determined by the particular circumstances of your company.
Fees & repayments
How do you charge for a business loan?
When you make an application for one of our company loan, we will assess the risk profile the business and provide an individualised offer that includes loan amount, term and the interest rates. The business loan is an upfront priced loan therefore you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I will be charged?
The interest rates on business loans rates vary due to factors like the amount of money borrowed, the business assets the money will be used for, the industry the company operates in, how long the business has been in operation, how long the company has sufficient cash flow to cover the loan, and also the overall well-being or creditworthiness of the company.
What are the fees?
There are no hidden fees for our company loans, and you’ll know precisely how much you’ll be required to pay and when, right from day one. There’s no compounding interest, and no extra fees (as long as you make your payments on time).
We do not charge an Application Fee. You are able to apply for a loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay out the loan early?
You can choose to repay the entire amount of your advance loan at any time.
If you choose to pursue this option, please talk to one of our helpful company loan specialists. We will provide you with the details of your repayment along with an early payout estimate. The figure will be calculated as the total of the remaining principal amount and any accrued interest at the time of the early payout plus 1.5 percent of the principal balance as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear the ways we gather, use, exchange and safeguard your data, 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 employ industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to customer security and privacy. We employ a highly sophisticated bank verification system that allows you to immediately confirm your bank account information online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner utilises the assets they have to make the loan. The asset can be either a personal asset like the family home, or an business asset like a truck as well as a piece of machine.
The majority of banks, including the largest banks, are inclined to guarantee loans against an asset. If you have trouble paying back the loan, then your asset may be sold by the lender. In essence it’s the process of securing additional financing using the worth of the asset you already have.
Are I need security to get an company loan?
Up to $150,000 in loans there is no requirement for asset security upfront to access the money but we do require the personal guarantee. In the event that you fulfill the loan terms (as specified in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150K, generally, there is personal ensure and security is provided in the form of an asset charge.