FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Perth Small Business Loans
Tell me what you think of the Perth Small Business Loans
Perth unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
The application to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and the funds could be in your account in 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. This business loan is a cash-based loan therefore you’ll know ahead of time the total amount payable including any fees, interest or charges. Then, it is broken down into either a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business purpose including the management of cash flow, business improvements, advertising to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal purposes.
About Larger Perth Business Loans
What is the Larger Perth Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be used for?
A larger company loan can be used for nearly any business use, including company renovations, purchase of equipment or inventory for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It’s by way of charge over assets, and could include the registration of this in the PPSR or filing as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is generally based rather than defining security over a particular asset. The person signing the guarantee is personally responsible if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR grants preference over private property granted according to the date a registration of a security interest.
Caveats are legal document lodged to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250,000, we may offer an initial pre-approval to make the process. It is possible to do this without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial health questions. This is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer you might receive could be on different terms.
The application process
Do I have the right to receive funds?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a few minutes and a dedicated business expert in lending will be in touch to guide you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Information on the application including credit consent and 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, plus interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within one hour – as long as you apply within standard company timings and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statements we can offer a decision within one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be capable of provide you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this can be quicker based on the circumstances of each application. Some transactions have received approval in 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours. You can also let us use the advance bank verification link to instantly verify your bank account information online. If you opt to upload copies of your bank statements it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we can often offer an answer in just one hour if you make your application at normal business hours and let us utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statement, we’ll offer an answer within the span of one business day.
For Larger Business Loans ($100K and up) We may be in a position to offer you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved in less than 24 hours.
The quickest method can be make sure you apply during standard business hours. Also, allow us to use the advanced bank verification system link to confirm your bank details online. If you choose to upload documents from your account statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of variables in order to assess what is the well-being of your business and the amount of payments your business can support. The amount you receive from your loan will be contingent on the particular circumstances of your business.
When you submit an application for a particular amount, we will consider a number of aspects to assess how much we can lend you such as well-being for your company and the level of repayments that your company can afford. The amount you receive from your loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for an business loan?
When you request our business credit, we’ll assess the risk assessment of your business and offer an individualised offer, including the loan amount, the terms and the interest rates. The company loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any charges or interest.
What is the factor that determines the price I’m charged?
Interest rates for business loans rates differ based on various factors like the amount of money that is borrowed, what company assets the money are used to purchase, the industry the business is in, how long the business has been operating, in the event that the company has sufficient cash flow to pay for the loan, as well as the overall well-being as well as creditworthiness business.
What are the cost?
There aren’t any hidden charges for our company loans. You’ll know precisely what you’ll need to pay, and when, from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an application fee. You are able to make an application for loans with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You can choose to repay the total amount of your loan in full at any time.
If you are deciding to do this please speak to our friendly business credit specialists. The professionals will provide you with details for repayment and an early payout figure. This will be calculated as the total of the principal balance and accrued interest to the time of the early payout and 1.5 percent of the principal amount remaining plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing how we collect the information we collect, use, share and protect your information, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We employ an exceptionally sophisticated bank verification system link to immediately confirm your bank account information online. This allows us to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner borrows from an asset that they own to get the funds for a loan. The asset can be either an individual asset, such as the family home or it could be a company asset such as a vehicle as well as a piece of machine.
The majority of lending institutions, even the banks with the biggest size, prefer to guarantee 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 an opportunity to secure new funding taking advantage of the value of what you already have.
Do I require security to secure an company loan?
For loans up to $150K no asset security is required upfront to access the money however, we require a personal guarantee. require the personal guarantee. So long as you comply with the loan terms (as detailed in the loan contract), asset security will never be required. For loans that exceed $150,000, generally, you can get an individual guarantee and security is provided in the form of the charge of assets.