FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Belgrave Small Business Loans
Let me know how you can avail the Belgrave Small Business Loans
Belgrave unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and funds may be in your account in 24 hours. Traditional business loans reference an annual interest rate along with other charges and fees. The company loan is a loan that is priced upfront so you will know ahead of time the amount you will have to pay, including any fees, charges or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company purpose including managing cash flows, business improvements, advertising for purchasing inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Belgrave Business Loans
What is the Larger Belgrave Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to be operating for at least three years with an annual turnover of $700K. The applicant must also 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 minimum 12 months of continuous trading.
How can the funding be used for?
A Larger Business Loan can be used for almost all company purpose including business improvements, purchasing new equipment or inventory for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. It is usually in the form of a charge on assets, which could also be registered through the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to repay credit that is generally based rather than specifying security over a particular asset. The person signing the guarantee is personally liable if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date the security interest has been registered.
The caveat can be described as a formal document that is filed to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250,000 we may be able to provide an initial pre-approval that will help simplify the process. We could be able to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health checks. This is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you are offered could be based on different conditions.
The 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)
- you must demonstrate at minimum 6 months worth of trade (for you to qualify for 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. Complete the online form within a few minutes and a dedicated company lending specialist will be in touch to assist you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License) and a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent and 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we usually offer an answer within one hour – as long as you submit your request in quality business hours and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements we can offer a decision within an company day.
For Larger Business Loans ($100K and up) we might be able to provide the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The quickest method would be to make sure you apply during standard business hours. Also, allow us to use the modern bank verification link to instantly verify your bank information online. If you upload the copies of bank statements , it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we usually provide a response in one hour – provided you submit your request in standard business times and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statement, we’ll provide a decision within 1 business day.
For the Larger Business Loans ($100K or more) we may be capable of provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain agreements have been approved within just 24 hours.
The fastest way would be to make sure you apply during standard business hours. Also, allow us to use the modern bank verification link to instantly verify your bank account information online. If you decide to send us the copies of bank statements, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of factors for determining how much we can lend you well-being of your business as well as the amount of repayments your business can afford. The amount you receive from your loan will depend on the specific circumstances the company.
If you apply for a particular amount, we look at a range of aspects to determine the well-being of the business and the extent of repayments your company can support. The amount you receive from your loan will be determined by the specific circumstances the business.
Fees & repayments
How much do you charge for an business loan?
When you request business loans with us company loan, we’ll assess the risk profile of your company and provide an individualised offer, including the amount of loan, the term and interest rates. The business loan is an upfront priced loan which means you be aware of the total amount to be paid, including any charges or interest.
What is the basis for the rate I will be charged?
Interest rates for business loans rates differ based on various factors such as the amount that is borrowed, the business assets the money are used to purchase in addition to the industry that the business operates in, the long the company has been running and in the event that the business has sufficient cash flow to fund the loan, and also the overall well-being or financial standing of the business.
What are the fees?
There aren’t any hidden charges for our company loans. You’ll know precisely how much you need to pay, and at what time, from the first day. There’s no compounding and there are no additional charges (as long as you make your payments on time).
We don’t charge an application fee. You can request a credit loan no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I repay the loan in advance?
You may choose to pay back all of your loan in full at any time.
If you choose to pursue this option, please call our helpful business loan experts. They will provide you with details on repayment along with an early payout estimate. This is calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payment plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing payment dates and to align with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear the ways we gather information, use it, and exchange it, as well as safeguard your data, is crucial and is a crucial 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 protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We utilise a sophisticated bank verification system to instantly verify your bank account information online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an company owner borrows from the assets they have to secure the funding. The asset can be either an individual asset, such as the family home, or a business property like a truck or piece or equipment.
The majority of the lenders even the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, the asset might be taken over by the lender. In essence it is an opportunity to secure new financing making use of the value of what you already have.
Are I need security for an business loan?
For loans of up to $150K, it is not necessary to secure assets in advance to gain access to the funds However, we do require the personal guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract) the security of assets will never be needed. For loans that exceed $150K, generally, there is an individual guarantee and security in the form of a charge over assets.