FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Burnside Heights Small Business Loans
Tell me how you are able to avail the Burnside Heights Small Business Loans
Burnside Heights unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
The application for your Small Business Loan in under 10 minutes by phone. You will receive a same day response and the funds could be in your account within 24 hours. Traditional business loans reference an annual interest rate along with other charges and fees. Our company loan is a loan that is priced upfront therefore you’ll be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into a daily or weekly installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any business need, such as the management of cash flow, company improvements, advertising to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About the Larger Burnside Heights Business Loans
What is the Larger Burnside Heights Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large the company needs to be operating for at least three years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can the funding be used for?
A large business loan can be used for nearly every company need, including company remodeling, buying inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It’s as a result of an charge on assets, and could include the registration of this in the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally in nature rather than specifying security over a particular asset. The person signing the ensure is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR grants priority over personal property to be granted depending on the date that a security interest was registered.
An affidavit is an official document filed to provide the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan of more than $250,000 we may be able to provide an initial pre-approval that will help smooth out the process. We could be able to apply for this without credit checks and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial well-being questions. It is not an offer of credit or guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer that you may receive may be subject to different terms.
The application process
Can I be eligible for funding?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form in few minutes and an experienced company credit specialist will be in touch to guide you through the process.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s License), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent twelve months of bank statements, IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour, provided you apply in quality business time and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statements we can offer an answer within one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be able to provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval, turnaround times are 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 24 hours.
The most effective method can be make sure you apply during normal company hours and allow us to use the modern bank verification to check your bank’s information online. If you choose to upload documents from your account 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 typically provide a response in one hour – as long as you submit your request within standard business timings and you allow us to use the bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statements, we will be able to provide a decision in as little as an business day.
For Larger Business Loans ($100K and up) we may be able to provide you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some transactions have received approval in the space of 24 hours.
The fastest way is to make sure you apply during normal business hours, and allow us to use the advanced bank verification system link to check your bank’s information online. If you decide to send us the copies of bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we look at a variety of aspects to determine your health of the business and the level of repayments that your business can afford. The amount you receive from your loan will depend on the particular circumstances of your business.
When you submit an application for a specific amount we consider a variety of elements to determine how much we can lend you such as health of your business and the amount of repayments that your company can support. The total amount of your loan will be determined by the specifics the company.
Fees & repayments
How do you charge for a company loan?
When you make an application for one of our business loans, we’ll assess the risk profile the company and offer you with a customised offer, including loan amount, term and interest rates. The company loan is an upfront-priced loan therefore you will know the exact amount you will have to pay, including charges or interest.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates differ based on various factors like the amount of money borrowed, what business assets the money will be used for, the industry the company operates in, how long the business has been running, whether the company has enough cash flow to fund the loan, as well as the general health and creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll know precisely what it is that you need to pay, and when, starting from day one. There’s no compounding interest and no extra fees (as as you make your payments in time).
We do not charge an application fee. You can get a cash loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan early?
You can choose to repay the entire amount of the loan in full at any time.
If you do decide to do this please contact our helpful company credit specialists. The professionals will provide you with repayment details and an early payment figure. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the time of the early payout, plus 1.5% of the principal balance and any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about how we collect information, use it, and exchange it, as well as secure your information, is vital 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 techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We make use of an advanced bank verification system to instantly verify the bank account details online so we can offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner makes use of an asset they own to obtain the loan. The asset can be a personal asset like the family home, or it could be a company asset such as a vehicle or piece of equipment.
The vast majority of the lenders even the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then the asset could be sold by the lender. In essence, it’s means of securing additional financing making use of the value of what you already have.
Do I need security for an business loan?
For loans up to $150,000 the requirement for asset security is not required prior to the loan’s access but we require a personal guarantee. need a personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract document) Asset security will never be needed. For loans that exceed $150K, generally there is the option of a personal ensure and security in the form of an asset charge.