FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Beechina Small Business Loans
Tell me how you are able to avail the Beechina Small Business Loans
Beechina unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from an ordinary business loan?
Apply for the Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and funds may be in your account in 24 hours. Traditional business loans are based on an annual rate of interest along with other charges and fees. We offer a company loan is a loan that is priced upfront and you’ll be aware of the total amount payable including the interest, fees and charges. This is then divided into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company need, such as the management of cash flow, business improvements, advertising, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal purposes.
About larger Beechina Business Loans
What is the Larger Beechina Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to be operating for at least three years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large business loan can be used for nearly all business use, including company remodeling, buying equipment or inventory, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This can be done in the form of a charge over assets, which could also include the registration of this in the PPSR or filing a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature rather than stipulating security over an asset. The person signing the guarantee is personally liable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR grants priority over personal property to be granted depending on the date that a security interest that is registered.
Caveats are legal form of document to provide notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan of $250K or more we can offer a preliminary pre-approval to help ease the process. We might be able to make this decision without credit checks and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial well-being checks. It is not an offer or guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could be based on different terms.
The application process
Do I have the right to receive funds?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own 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 trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a couple minutes, and a dedicated business credit specialist will be in touch to help you.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank records, IRD statement and the last two years’ finalised financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we typically offer a response in one hour – as long as you apply during standard business timings and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements , we will be able to offer a decision in just an company day.
For Larger Business Loans ($100K to $500K) we could be capable of offer you with a conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some agreements have been approved within less than 24 hours.
The fastest way can be make sure you apply during standard company hours and allow us to use the advance bank verification to instantly check your bank’s information online. If you upload duplicates of your banking statement, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we can often provide an answer in just one hour if you submit your request at standard business hours and permit us to use the bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statements, we will be able to offer a decision within the span of one business day.
For Larger Business Loans ($100K or more) we may be able to offer the conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Certain offers have been approved within less than 24 hours.
The most effective method would be to ensure you apply during normal business hours, and let us use the advanced bank verification system link to check your bank’s information online. If you upload duplicates of your banking accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a certain amount we consider a variety of variables to determine your health for your company and the level of repayments that your company can support. The total amount of your loan will be contingent on the specifics the company.
When you make an application for a set amount, we consider a variety of factors to assess the well-being of your company as well as the amount of repayments your business can support. The amount you receive from your loan will be contingent on the specific circumstances the business.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for the company loans, we’ll assess the risk assessment for your company and provide an individualised proposal that includes the amount of loan, the term and the interest rates. This business loan is a loan that is priced upfront which means you be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the factor that determines the price I’m charged?
Business loan interest rates vary due to factors such as the amount that is borrowed, the business assets the funds are used to purchase, the industry the business operates in, the long the business is in operation, in the event that the business has enough cash flow to support the loan, and the general health or creditworthiness of the company.
What are the cost?
There are no hidden costs with our business loans. You’ll be aware of the amount you’ll need to pay and when, from the first day. There’s no compounding interest and no additional fees (as as you make your payments in time).
We do not charge an Application Fee. You can get a cash loan with with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan in advance?
You can decide to repay the total amount of your loan early at any time.
If you choose to pursue this option, please call our helpful company loan specialists. They will offer you with details for repayment and an early payment figure. It will be calculated using the sum of the principal remaining and the accrued interest up to the time of early payout plus 1.5% of the principal remaining and any fees that remain unpaid.
How do repayments work?
To make sure that you don’t miss repayments and to fit in with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect data, process, exchange and safeguard your data, is crucial and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We use an advanced bank verification system to instantly verify the bank account details online to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses an asset they own to obtain the funding. The asset can be either an asset belonging to the personal, like the family home, or a business asset such as a truck as well as a piece of machine.
The majority of lending institutions, even the largest banks, are inclined to secure loans against assets. If you’re having trouble paying back the loan, then your asset may be transferred to the lender. In essence it is means of securing new financing making use of the value of what you already own.
Do I need security to secure an business loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. So long as you comply with your loan commitments (as stipulated in the loan contract) Asset security is not needed. For loans over $150K generally, you are able to get the option of a personal guarantee and security is provided in the form of a charge over assets.