FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Balcatta Small Business Loans
Tell me about the Balcatta Small Business Loans
Balcatta unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from an ordinary company loan?
It is possible to apply to get your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and have the funds in your account within 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. This company loan is a loan that is priced upfront and you’ll know in advance the total amount due, which includes any fees, interest or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company purpose including the management of cash flow, company renovations, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal purposes.
About Larger Balcatta Business Loans
What is the Larger Balcatta 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 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be trading for at least 3 years with an annual turnover of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly any company need, including business renovations, to purchase equipment or inventory or 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 accessing funds over $150,000. This is by way of charge over assets, and may be registered on the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature rather than stipulating the security for a particular 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 that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR gives priority over personal property to be assigned according to the date the registration of a security interest.
Caveats are legal document 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 larger company loans that is greater than $250K, we may offer an initial pre-approval that will help ease the process. It is possible to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial well-being questions. This is neither an offer nor a guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you may receive may be subject to different conditions.
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 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the 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 quick and easy. Just fill out the online application within a few minutes and a dedicated company credit specialist will call you to assist you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within an hour, provided you submit your request within standard company time and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statement, we’ll offer the decision in just one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be likely to provide you with a conditional pre-approval in about 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The fastest way can be make sure you apply during standard business hours. Also, allow us to use our advance bank verification link to verify your bank information online. If you decide to send us the copies of bank statement, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) We can usually offer a response in one hour if you make your application at normal business times and let us use the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your bank statement, we’ll offer a decision in just one business day.
For the Larger Business Loans ($100K to $500K) We may be able to offer the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Certain offers have been approved within just 24 hours.
The quickest method can be make sure you apply during standard business hours. You can also permit us to use the advance bank verification to verify your bank account information online. If you decide to upload the copies of bank statement, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a specific amount we look at a variety of elements that determine your health that is your business as well as the amount of the repayments your business will be able to support. The total amount of the loan will be determined by the specifics for your company.
When you apply for a particular amount, we take into consideration a variety of elements to assess your health of your business and the level of repayments that your business can afford. The amount you receive from your loan will depend on the particulars for your business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to request business loans with us company credit, we will assess the risk assessment that you have for your company and provide you with a customised offer, including loan amount, term and interest rates. A business loan is a loan that is priced upfront therefore you will know the exact amount due, which includes any interest rates, fees or charges.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on several factors such as the amount that is that is borrowed, what company assets the money will be used for and the sector the business is operating in, how long the company has been operating as well as whether the company has enough cash flow to pay for the loan, as well as the overall health or creditworthiness of the company.
What are the cost?
There aren’t any hidden charges with our business loans. You’ll be aware of the amount it is that you be required to pay, and when, right from the first day. There’s no compounding interest, and there are no additional charges (as long as you make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan early?
You can choose to repay the total amount of your loan at any point in time.
If you decide to do this please call our helpful company lending specialists. We will offer you with details for repayment along with an early payout estimate. This is calculated as the sum of the principal balance and the accrued interest up to the time of early payment and 1.5% of the principal remaining as well as any outstanding fees.
What are the repayment methods?
To ensure you do not miss payments and to work with your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Security of your data, and being transparent about the ways we gather data, process, exchange and secure your information, is vital and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We employ a highly sophisticated bank verification system that allows you to immediately verify your bank account details online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the business owner utilises an asset that they own to secure the funding. The asset can be either a personal asset like the family home or it could be a business property like a truck as well as a piece of machine.
The majority of lenders, even the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan then your assets could be sold by the lender. In essence, it’s means of securing additional financing making use of the value of what you already own.
Are I need security to secure an company loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money, however we do need the personal guarantee. If you adhere to the loan terms (as stated in the loan contract) the security of assets will never be required. For loans of over $150K generally there is an individual guarantee and security is provided in the form of the charge of assets.