FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Beaconsfield Small Business Loans
Let me know how you are able to avail the Beaconsfield Small Business Loans
Beaconsfield unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from the traditional company loan?
It is possible to apply for the Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and funds may be in your account within 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. The company loan is a pre-paid loan and you’ll know ahead of time the total amount payable including any fees, charges or charges. Then, it is broken down into a daily or weekly payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business reason, such as cash flow management, business renovations, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
Concerning Larger Beaconsfield Business Loans
What is the Larger Beaconsfield Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to be trading for at least 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can the funds be used for?
A Larger Business Loan is a great option for almost any company purpose including company renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It’s by way of charge on assets, which could also include registering this on the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to repay a loan which is general in nature rather than specifying security over a particular asset. The person who signs the guarantee is personally responsible if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR grants preference over private property granted depending on the date that a security interest that is registered.
The caveat can be described as a formal document filed to offer notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans that is greater than $250K we can offer an initial pre-approval that will help ease the process. We could be able to make this decision without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial well-being checks. It is not an offer of credit or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you might receive could have different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of 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 in just a few minutes, and a dedicated business lending specialist will contact you to guide you through the process.
To apply for up to $100,000 you’ll require ID details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we can often offer a response in one hour – as long as you submit your request at standard company timings and permit us to utilise the bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements we can offer the decision in just one business day.
For Larger Business Loans ($100K or more) we may be likely to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this can be quicker based on the specifics of each application. Some deals have been approved within less than 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. You can also allow us to use our advance bank verification link to instantly verify your bank information online. If you decide to send us copies of your bank statement, it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we usually offer an answer within one hour if you submit your request during standard business times and permit us to use the bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statements, we will be able to provide a decision within 1 business day.
For the Larger Business Loans ($100K up to $500,000) we might be likely to provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Certain offers have been approved within the space of 24 hours.
The most efficient method can be make sure you apply during normal business hours. You can also let us use the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank accounts, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount, we consider a variety of variables in order to assess how much we can lend you well-being for your business as well as the amount of repayments your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your business.
When you apply for a certain amount, we consider a variety of variables to determine your health that is your company as well as the amount of repayments that your business can afford. The amount you receive from the loan will be determined by the particular circumstances of your business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you request one of our business loan, we will assess the risk assessment the company and provide you with a tailored proposal that includes the loan amount, the terms and interest rates. A company loan is an upfront priced loan which means you be aware of the total amount payable including any charges, interest rates or fees.
What determines the rate that I am charged?
Interest rates for company loans rates differ based on various variables like the amount to be borrowed, what company assets the funds will be used for and the sector the company operates in, the long the business has been running as well as in the event that the business has sufficient cash flow to pay for the loan, and overall health or creditworthiness of the company.
What are the charges?
There aren’t any hidden costs for our business loans. You’ll know precisely what you be required to pay, and at what time, from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We do not charge an application fee. You can apply for a loan with no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan in advance?
You can choose to repay the total amount of your loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful business loan experts. We will offer you with details for repayment and an early payout figure. It will be calculated using the sum of the principal balance and the accrued interest up to the time of early payment and 1.5 percent of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments that are either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear how we collect data, process, exchange and safeguard your data, is of paramount importance and an integral 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 techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We employ an exceptionally sophisticated bank verification system that allows you to immediately confirm your bank account information online. This allows us to 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 assets they own to secure the funding. The asset could be a personal asset like the family home, or an business asset like a truck or other piece of machinery.
The vast majority of banks, even the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan then your assets could be transferred to the lender. In essence it is an opportunity to secure new funding taking advantage of the value of what you already have.
Should I require security to get a business loan?
For loans that exceed $150,000, no asset security is required prior to the loan’s access but we require a personal guarantee. require a personal guarantee. In the event that you fulfill your loan obligations (as detailed in the loan contract), asset security will never be required. If you take out loans in excess of $150K generally there is an individual ensure and security in the form of charges on assets.