FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Botany Downs Small Business Loans
Let me know how you can avail the Botany Downs Small Business Loans
Botany Downs unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
It is possible to apply to the Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. This business loan is a cash-based loan therefore you’ll know in advance the total amount to be paid, including the interest, fees and charges. This is then divided into weekly or daily installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company use, including control of cash flow business remodels and marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan is not available for personal use.
About the Larger Botany Downs Business Loans
What is the Larger Botany Downs Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large the business needs to be in operation for at least 3 years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can the funding be used for?
A Larger Business Loan can be used for nearly every business reason, such as company remodeling, buying equipment or inventory for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This is in the form of a charge over assets and can include registration on the PPSR or registering as a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is general in nature rather than stating security over an asset. The person who is signing the guarantee is personally liable in the event that the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including goods or assets). The PPSR gives preference over private property granted according to the date the security interest was registered.
A caveat is a legal document that is filed to offer notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan of $250,000 or more we may be able to provide a preliminary pre-approval to help smooth out the process. We might be able to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial health questions. This is not an offer or guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you receive could have different terms.
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)
- must show at least six months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in few minutes and an experienced business loan specialist will be in touch to guide you through the process.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence) 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 – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent twelve months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we can often provide a response in one hour, provided you make your application in standard company hours and let us utilise the bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll offer the decision within just 1 company day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be in a position to provide you with a conditional pre-approval in about six hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be quicker based on the particular circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The quickest method would be to make sure you apply during normal company hours. You can also permit us to use the modern bank verification to verify your bank information online. If you opt to send us the copies of bank statements , it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we usually provide an answer within an hour, provided you make your application at normal business time and you allow us to use the bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statements, we will be able to offer an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) we may be able to provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Certain offers have been approved in just 24 hours.
The quickest method is to make sure you apply during standard business hours and let us use the modern bank verification link to instantly check your bank’s information online. If you decide to send us copies of your bank statement, it can take 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 certain amount, we take into consideration a range of variables for determining the health for your company as well as the amount of payments your business is able to afford. The total amount of your loan will be contingent on the specific circumstances for your company.
When you make an application for a particular amount, we will consider a number of elements to determine how much we can lend you such as well-being of your business as well as the amount of repayments 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 much do you charge for the cost of a company loan?
If you decide to make an application for business loans with us company credit, we’ll assess the risk profile of your company and provide you with a tailored offer, including the amount of loan, the term and the interest rates. It is a company loan is an upfront-priced loan therefore you will be aware of the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I am charged?
Business loan interest rates vary due to factors such as the amount that is borrowed, what business assets the money will be used for as well as the field the business is operating in, how long the company is in operation for, what percentage of the business has sufficient cash flow to pay for the loan, and general health as well as creditworthiness business.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll be aware of the amount you’ll need to pay and when, right from the very first day. There’s not any compounding interest and no extra fees (as long as you make your payments in time).
We do not charge an application fee. You are able to request a credit loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan early?
You may choose to pay back the total amount of your loan early at any time.
If you do decide to take this route, please call our helpful company loan professionals. They’ll provide you with details on repayment and an early payout figure. It will be calculated using the total of the principal remaining and accrued interest to the time of early payout in addition to 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear how we collect, use, exchange and ensure the security of your information is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated bank verification system that allows you to instantly verify your bank account details online so we can provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the business owner uses an asset they own to make the funds for a loan. The asset could be an asset belonging to the personal, like the family home or an business asset such as a vehicle or piece or equipment.
The majority of banks, not just the banks with the biggest size, prefer to make loans secured by assets. If you’re having trouble paying back the loan, the asset could be sold by 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 need security to get a company loan?
For loans that exceed $150K, there is no requirement for asset security prior to the loan’s access, however we require a personal guarantee. need the personal guarantee. In the event that you fulfill the loan terms (as stated in the loan contract) the security of assets is not required. If you take out loans in excess of $150K generally there is the option of a personal guarantee and security is provided in the form of charges on assets.