FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Burswood Small Business Loans
Let me know how you are able to avail the Burswood Small Business Loans
Burswood unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from an traditional company loan?
You can apply to get the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and the money could be available in just 24 hours. Traditional company loans reference an interest rate per annum as well as other fees and charges. Our business loan is a loan that is priced upfront which means you be aware of the total amount to be paid, including any fees, interest or charges. This is then broken down into either a daily or weekly repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business reason, such as control of cash flow company remodels and marketing to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About Larger Burswood Business Loans
What is the Larger Burswood 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. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the company needs to be operating for a minimum of 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be used for?
A large business loan can be used for almost any company purpose including 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 needed to access funding over $150,000. This can be done by way of charge against assets and can include registration through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is generally in nature rather than specifying the security of a specific asset. The person who signs the guarantee is personally liable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR grants preference over private property assigned according to the date the registration of a security interest.
The caveat can be described as a formal document that is filed to provide the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250K it’s possible to offer an initial pre-approval in order to make the process. It is possible to apply for this without a credit check, and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial health checks. It is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you receive could be subject to different conditions.
Application process
Are I eligible for funding?
You may be eligible for a company 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 prove at least 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form in just a few minutes, and an experienced company lending specialist will be in touch to help you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour, provided you submit your request during standard business hours and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statements , we will be able to offer the decision within just one business day.
For the Larger Business Loan ($100K up to $500,000) we could be able to provide the conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain deals have been approved in 24 hours.
The fastest way is to make sure you apply during standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank account information online. If you choose to upload the copies of bank statements , it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour, provided you make your application during normal business times and you allow us to use the bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statements we can provide a decision in as little as the span of one business day.
For the Larger Business Loans ($100K or more) we could be capable of offer you with conditional pre-approval within 6 hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some agreements have been approved in the space of 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours and allow us to use the advance bank verification to verify your bank account information online. If you 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 and $500,000. When you make an application for a particular amount, we take into consideration a range of factors to determine what is the health of the company as well as the amount of payments your company is able to afford. The amount you receive from your loan will depend on the particular circumstances the business.
When you make an application for a set amount, we will consider a number of factors to assess the well-being of the business and the level of the repayments your company can afford. The amount you receive from your loan will be contingent on the specifics of your business.
Fees & repayments
How do you charge for an company loan?
When you apply for our company credit, we will assess the risk profile of your business and provide you with a customised offer including loan amount, term and interest rates. It is a company loan is an upfront priced loan which means you be aware of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I pay?
Interest rates for company loans rates vary due to factors like the amount of money borrowed, what business assets the funds are used to purchase, the industry the business operates in, how long the company has been operating as well as what percentage of the company has enough cash flow to cover the loan, and general well-being or financial standing of the company.
What are the cost?
There aren’t any hidden costs for our company loans, and you’ll know precisely what it is that you need to pay, and when, right from the very first day. There’s no compounding and there are no additional charges (as long as you make your payments in time).
We do not charge an application fee. You can request a credit loan no cost upfront or obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of your loan at any point in time.
If you do decide to take this route, please contact our helpful company loan specialists. The professionals will provide you with details for repayment and an early payment figure. This is calculated as the sum of the principal remaining plus any accrued interest as of the date of early payout in addition to 1.5% of the principal remaining as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about how we collect information, use it, and exchange it, as well as ensure the security of your information is of huge importance and is a crucial 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 financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our clients and security. We use an advanced bank verification system to immediately verify your bank account information online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner borrows from an asset they own to get the funding. The asset can be a personal asset like the family home or an business property like a truck as well as a piece of machine.
The vast majority of lending institutions, not just the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan then your asset may be transferred to the lender. In essence it’s an opportunity to secure new financing by making use of the value of what you already have.
Should I require security to get an business loan?
For loans that exceed $150K, no asset security is required prior to the loan’s access but we require a personal guarantee. need an individual guarantee. So long as you comply with the loan terms (as stated in your loan contract document), asset security will never be needed. For loans over $150,000 generally there is the option of a personal ensure and security in the form the charge of assets.