FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Bonbeach Small Business Loans
Tell me more about Bonbeach Small Business Loans
Bonbeach unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from an ordinary business loan?
You can apply to get this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and have the funds on your account within 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. Our company 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 broken down into either weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any company reason, such as the management of cash flow, company improvements, advertising to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal reasons.
About Larger Bonbeach Business Loans
What is the Larger Bonbeach Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to be in operation for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be utilised?
A large company loan can be used for almost all company need, including business renovations, to purchase equipment or inventory or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. It’s in the form of a charge on assets, which could also be registered on the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally in nature rather than stating the security of a specific asset. The person who signs the guarantee is personally responsible if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted according to the date the registration of a security interest.
Caveats are legal form of document to provide the legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan of $250,000 or more we can offer an initial pre-approval to smooth out the process. It is possible to get this done without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial well-being checks. It’s not an offer of credit or guarantee of financing. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you may receive may be based on different terms.
Application process
Are I eligible for funding?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Complete the online form in few minutes and a dedicated company credit specialist will contact you to guide you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour – as long as you apply at standard company times and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements , we are able to offer the decision in as little as 1 company day.
For the Larger Business Loan ($100K to $500K) we may be likely to provide you with a conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval within 24 hours.
The quickest way to apply can be make sure you apply during standard company hours and permit us to use the advanced bank verification system to verify your bank account information online. If you opt to send us duplicates of your banking statements it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within one hour – as long as you submit your request during standard business times and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we will be able to provide an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K and up) we may be likely to provide you with conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Some transactions have received approval in less than 24 hours.
The most effective method is to make sure you apply during standard business hours. You can also allow us to use our advanced bank verification system to verify your bank account information online. If you opt to upload documents from your account statements, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a particular amount, we take into consideration a range of aspects to determine your health that is your company and the level of repayments your company can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
If you apply for a specific amount we consider a variety of elements to determine how much we can lend you such as well-being for your company and the level of repayments that your business will be able to support. The amount you receive from the loan will be determined by the particular circumstances the business.
Fees & repayments
What is the cost for a company loan?
If you decide to apply for the company loans, we’ll assess the risk assessment that you have for your business and provide you with a customised offer, including the amount of the loan, the duration and the interest rates. The business loan is an upfront priced loan which means you know in advance the total amount payable including any charges or interest.
What is the basis for the rate I will be charged?
Interest rates for business loans rates vary due to factors including the amount that is borrowed, what company assets the money are used to purchase as well as the field the business is in, how long the company has been operating, whether the business has enough cash flow to cover the loan, and also the general health or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll know exactly how much it is that you need to pay and when, right from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You can request a credit loan no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan earlier?
You can choose to repay all of your loan in full at any time.
If you choose to do this please call our helpful business loans specialists. They will offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the total of the principal balance and accrued interest to the time of early payment in addition to 1.5 percent of the remaining principal as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work with your cash flow general, we offer repayments either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather the information we collect, use, share and safeguard your data, is crucial and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We utilise a sophisticated bank verification system that allows you to instantly verify the bank account details online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner borrows from assets they own to make the funding. The asset can be either an individual property, such as the family home, or an business property like a truck as well as a piece of machine.
The majority of banks, even the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan then your assets could be offered for sale by the lender. In essence it’s the process of securing new funding making use of the value of what you already have.
Should I require security to secure a company loan?
For loans that exceed $150,000, there is no requirement for asset security before you are able to access the money however, we do need the personal guarantee. So long as you comply with the loan terms (as stipulated in the loan contract) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150K generally, you can get an individual guarantee and security in the form of an asset charge.