FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Breaker Bay Small Business Loans
Tell me what you think of the Breaker Bay Small Business Loans
Breaker Bay unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an ordinary company loan?
It is possible to apply to this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and the funds could be on your account within 24 hours. Traditional company loans reference an interest rate per annum plus other fees and charges. This company loan is a pre-paid loan which means you be aware in advance of the total amount payable including any fees, charges or charges. Then, it is divided into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost any company purpose including managing cash flows, company remodels and marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About larger Breaker Bay Business Loans
What is the Larger Breaker Bay Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the company needs to be in operation for at least 3 years, and have an annual income of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can the funding be used for?
A Larger Business Loan can be used to fund almost all business need, including business renovations, purchase of new equipment or inventory for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It’s in the form of a charge against assets and can be registered through the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature rather than stating security over an asset. The person who is signing the ensure is personally liable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR grants preference over private property granted according to the date the security interest has been registered.
A caveat is a legal form of document to provide an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250,000 it’s possible to offer an initial pre-approval that will help smooth out the process. We might be able to apply for this without a credit check, and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial health checks. It is not an offer of credit or guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could have different conditions.
Application process
Do I qualify for funds?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form in just a few minutes, and an experienced company lending specialist will call you to guide you through the process.
To apply for up to $100,000 you’ll need identification details (valid Driver’s Licence) along with a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll also need:
$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: Application details including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within one hour if you make your application at quality company time and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statements , we are able to provide the decision within just the span of one business day.
For Larger Business Loans ($100K or more) we may be capable of provide you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval within less than 24 hours.
The quickest method is to ensure you apply during normal business hours and allow us to use the modern bank verification to instantly verify your bank account information online. If you decide to send us duplicates of your banking statements , it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) We can usually provide an answer in just one hour – as long as you make your application in normal business times and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements we can provide the decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) we might be likely to offer you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval within 24 hours.
The most efficient method is to make sure you apply during normal business hours. Also, permit us to use the sophisticated bank verification to verify your bank account information online. If you opt to send us duplicates of your banking statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a specific amount we look at a variety of elements that determine what is the health of the business and the level of repayments your company will be able to support. The total amount of the loan will be determined by the specific circumstances of your company.
When you make an application for a set amount, we consider a variety of elements to determine the health that is your company and the amount of repayments that your company will be able to support. The total amount of your loan will be determined by the specifics for your business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for one of our company credit, we’ll assess the risk assessment for your company and provide you with a customised proposal that includes the loan amount, the terms and the interest rates. It is a business loan is an upfront-priced loan and you’ll be aware of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Business loan interest rates differ based on various factors including the amount that is borrowed, what business assets the money are used to purchase as well as the field the company operates in, how long the company has been operating as well as whether the business has sufficient cash flow to cover the loan, and the general well-being as well as creditworthiness company.
What are the fees?
There are no hidden fees with our company loans, and you’ll know precisely what you need to pay, and when, right from the first day. There’s no compounding and no additional fees (as long as you make your payments in time).
We don’t charge an application fee. You can request a credit loan with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan early?
You can decide to repay the total amount of your loan in full at any time.
If you do decide to take this route, please contact our helpful company lending experts. They will offer you with details for repayment and an early payout figure. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of the early payout, plus 1.5 percent of the remaining principal as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either weekly or daily. They will be automatically deducted from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being upfront about how we collect, use, exchange and safeguard your data, is of paramount importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of customers and security. We use an advanced bank verification system link to instantly verify your bank account details online so we can offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an business owner borrows from the assets they have to obtain the loan. The asset can be either an asset belonging to the personal, like the family home or a company property like a truck or other piece of machinery.
The vast majority of lenders, even the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, then the asset might be taken over by the lender. In essence, it’s means of securing new funding taking advantage of the value of what you already own.
Are I require security to secure a company loan?
For loans that exceed $150,000, no asset security is required upfront to access the money however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill the loan terms (as specified in your loan contract) the security of assets will never be needed. For loans of over $150K typically, you will need a personal guarantee and security is provided in the form of charges on assets.