FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Burswood Small Business Loans
Let me know about the Burswood Small Business Loans
Burswood unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
Apply for the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and the money could be in your account in 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. This company loan is an upfront priced loan therefore you’ll be aware of the total amount to be paid, including any interest, fees or charges. This is then broken down into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business purpose including managing cash flows, company improvements, advertising, to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Burswood Business Loans
What is the Larger Burswood 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 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to be in operation for at least 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost all company need, including company renovations, to purchase new equipment or inventory as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It’s by way of charge over assets, and could include registering this on the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally based rather than stating security over a particular asset. The person who signs the ensure is personally accountable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR allows the priority of personal property granted according to the date a security interest that is registered.
The caveat can be described as a formal form of document to provide an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan of more than $250,000 we may be able to provide an initial pre-approval to smooth out the process. We could be able to get this done without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial well-being checks. This is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you may receive may have different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and an experienced business loan specialist will contact you to assist you.
To apply for up to $100,000 you’ll need proof of identity (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent, 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer within one hour – as long as you apply in standard company time and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide an answer within just 1 company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be capable of provide the conditional pre-approval within 6 hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Certain transactions have received approval in less than 24 hours.
The quickest method is to ensure you apply during normal business hours. You can also allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to send us the copies of bank accounts, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we typically offer a response in one hour, provided you make your application at normal business time and let us use the bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statements, we are able to provide the decision in just the span of one business day.
For Larger Business Loans ($100K or more) we might be able to offer the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some transactions have received approval within less than 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours, and let us use the sophisticated bank verification link to verify your bank account information online. If you choose to send us copies of your bank statement, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount, we consider a variety of factors to determine your well-being of the business and the level of repayments your business can support. The amount you receive from your loan will be contingent on the specific circumstances of your business.
When you make an application for a certain amount, we look at a range of elements to determine the well-being that is your business and the amount of payments your company can afford. The total amount of your loan will depend on the particular circumstances that are unique to your company.
Fees & repayments
What is the cost for a business loan?
When you apply for our business loan, we will assess the risk assessment of your business and provide you with a customised offer, including the amount of the loan, the duration and interest rates. The company loan is an upfront priced loan which means you be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Interest rates for business loans rates vary due to factors like the amount of money that is borrowed, what company assets the money are used to purchase in addition to the industry that the business operates in, how long the company is in operation for, whether the business has sufficient cash flow to fund the loan, and the overall well-being and creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our company loans, and you’ll know precisely what it is that you be required to pay and when, from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an application fee. You can request a credit loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan early?
You can repay the total amount of your loan at any point in time.
If you decide to take this route, please talk to one of our helpful business loans professionals. They will provide you with details for repayment and an early payment figure. This is calculated as the sum of the remaining principal amount and accrued interest to the time of early payout, plus 1.5 percent of the principal amount remaining and any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align with your cash flow general, we provide repayments either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about the ways we gather, use, exchange and ensure the security of your information is vital and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We use an advanced banking verification system to immediately confirm your bank account information online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the company owner uses the assets they have to get the funding. The asset may be a personal asset like the family home, or a company asset such as a truck or other piece of machinery.
The majority of lenders, even the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then your asset may be taken over by the lender. In essence it is a way of securing new financing making use of the value of what you already own.
What do I need security to secure an business loan?
For loans that exceed $150,000, no asset security is required in advance to gain access to the funds, however we require a personal guarantee. need an individual guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract document) the security of assets is not required. If you take out loans in excess of $150K generally, there is a personal ensure and security in the form of an asset charge.