FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Bertram Small Business Loans
Let me know about the Bertram Small Business Loans
Bertram unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from the traditional company loan?
You can apply for your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and the money could be in your account in 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. We offer a business loan is a cash-based loan so you will know in advance the total amount payable including any fees, interest or charges. This is then broken down into either a daily or weekly installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business need, such as control of cash flow business improvements, advertising, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
About larger Bertram Business Loans
What is the Larger Bertram Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size the company needs to have been trading for at least 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funding be utilised?
A larger business loan is a great option for almost any company purpose including company remodeling, buying equipment or inventory or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It is usually as a result of an charge against assets and can be registered in the PPSR or filing a caveat.
A personal or director’s guarantee is a promise to repay a loan which is general in nature, rather than defining security over an asset. The person who signs the guarantee is personally liable in the event that the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted according to the date a registration of a security interest.
Caveats are legal document filed to offer an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help simplify the process. We may be able to get this done without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health questions. This is in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you might receive could have different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a couple minutes, and an experienced company lending specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent, 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials, Aged Payables and Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we usually provide a response in one hour – as long as you apply in standard company timings and let us utilise the bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements we can offer an answer in as little as 1 business day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to offer the conditional pre-approval in around 6 hours. After you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The fastest way would be to make sure you apply during normal business hours and allow us to use our advance bank verification to instantly confirm your bank details online. If you choose to send us copies of your bank statements it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we typically provide an answer within an hour, provided you submit your request within standard business time and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements, we are able to provide the decision in as little as the span of one business day.
For the Larger Business Loans ($100K to $500K) we could be in a position to provide the conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Certain offers have been approved within 24 hours.
The quickest method would be to make sure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to instantly verify your bank information online. If you send us the copies of bank 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 specific amount we take into consideration a range of variables for determining the well-being of the business and the amount of the repayments your company will be able to support. The total amount of the loan will be determined by the specific circumstances the company.
When you apply for a certain amount, we consider a variety of factors to determine your health that is your business and the level of repayments your business can support. The total amount of your loan will be contingent on the specifics for your company.
Fees & repayments
What is the cost for an company loan?
When you request our company financing, we will assess the risk profile the business and provide you with a customised offer that includes loan amount, term and interest rates. A business loan is an upfront priced loan which means you be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I am charged?
Interest rates for business loans rates differ based on various factors such as the amount that is that is borrowed, what business assets the funds are used to purchase and the sector the business is operating in, how long the company is in operation for, what percentage of the business has sufficient cash flow to pay for the loan, and the general health and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our business loans. You’ll know exactly how much it is that you need to pay and when, from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can apply for a loan with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay all of your loan in full at any time.
If you are deciding to do this please speak to our friendly business loans experts. We will offer you with details for repayment and an early payment figure. This will be calculated as the sum of the principal balance and the accrued interest up to the time of early payment, plus 1.5 percent of the principal remaining as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payments and to work with your cash flow general, we provide repayments either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being upfront about how we collect information, use it, and exchange it, as well as secure your information, is of paramount importance and is an essential 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 standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our customers and security. We use an advanced banking verification system to immediately verify the bank account details online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the business owner borrows from assets they own to obtain the funds for a loan. The asset may be an individual asset, such as the family home, or a business asset such as a truck or other piece of machinery.
The vast majority of banks, not just the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, the asset might be sold by the lender. In essence, it is the process of securing new funding taking advantage of the value of what you already own.
What do I need security for a business loan?
For loans of up to $150,000, no asset security is required in advance to gain access to the funds However, we require a personal guarantee. require a personal guarantee. If you adhere to the terms of your loan (as stated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150,000 generally there is a personal guarantee and security in the form the charge of assets.