FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Browns Bay Small Business Loans
Let me know how you are able to avail the Browns Bay Small Business Loans
Browns Bay unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from the traditional company loan?
You can apply to your Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and have the funds in your account in 24 hours. Traditional business loans reference an annual interest rate as well as other fees and charges. We offer a business loan is a pre-paid loan which means you know ahead of time the total amount payable including the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business purpose including control of cash flow business renovations, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Browns Bay Business Loans
What is the Larger Browns Bay Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to have been trading for at least 3 years and have an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can the funds be used for?
A larger business loan can be used to fund almost any company reason, such as business renovations, to purchase 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 in the form of a charge over assets, and could include registration in the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally based rather than stating security over a particular asset. The person who is signing the ensure is personally responsible if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR grants priority over personal property to be granted depending on the date that a registration of a security interest.
An affidavit is an official document that is filed to offer the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000 it’s possible to offer an initial pre-approval that will help smooth out the process. We might be able to make this decision without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial well-being checks. It’s neither an offer nor a guarantee of finance. A conditional approval is subject a full credit assessment and any offer that you might receive could be based on different conditions.
The application process
Are I eligible for funding?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, 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 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just complete the online application in few minutes and a dedicated company credit specialist will be in touch to guide you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Information on the application including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer in just one hour if you make your application at quality business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your bank statement, we’ll provide the decision in as little as 1 company day.
For Larger Business Loans ($100K or more) we may be likely to provide you with a conditional pre-approval within about six hours. Once you have 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 specifics of each application. Some transactions have received approval within the space of 24 hours.
The most efficient method for you to apply is ensure you apply during normal company hours. You can also allow us to use our advanced bank verification system to confirm your bank details online. If you upload the copies of bank statements , it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer in just one hour if you make your application within standard business time and let us use the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements we can provide an answer within 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be capable of offer you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours. You can also allow us to use the sophisticated bank verification to instantly check your bank’s information online. If you send us duplicates of your banking statement, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a certain amount, we consider a variety of variables to determine your well-being that is your business and the level of repayments your company will be able to support. The amount you receive from your loan will depend on the specifics of your business.
When you make an application for a particular amount, we take into consideration a variety of factors to assess your health of the company as well as the amount of repayments your company can afford. The total amount of your loan will depend on the particular circumstances of your business.
Fees & repayments
How much should you charge for an company loan?
When you request the business loans, we’ll assess the risk assessment the business and offer you with a customised proposal that includes the amount of loan, the term and the interest rates. This business loan is an upfront cost loan which means you be aware of the total amount to be paid, including any charges or interest.
What determines the rate that I am charged?
The interest rates on company loans rates vary due to 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 in, how long the business has been running for, whether the business has enough cash flow to fund the loan, and also the general health or creditworthiness of the business.
What are the fees?
There are no hidden fees for our company loans, and you’ll know exactly how much you’ll need to pay and when, starting from the first day. There’s not any compounding interest and no extra fees (as long as you make your payments punctually).
We do not charge an application fee. You can make an application for loans absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan in advance?
You can repay the total amount of your loan in full at any time.
If you decide to take this route, please speak to our friendly company loan professionals. The professionals will offer you with details on repayment and an early payout figure. This will be calculated as the sum of the remaining principal amount and the accrued interest up to the date of early payout, plus 1.5 percent of the principal balance as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear the ways we gather data, process, exchange and protect your information, is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We make use of an advanced banking verification system to instantly confirm your bank account information online to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the business owner utilises an asset they own to secure the funding. The asset can be an individual property, such as the family home or it could be a business asset like a truck or other piece of machinery.
The vast majority of lending institutions, not just the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset could be transferred to the lender. In essence, it is a way of securing new financing using the value of what you already have.
Should I need security to get a business loan?
For loans of up to $150,000, the requirement for asset security is not required before you can access the money however, we do require an individual guarantee. If you adhere to your loan obligations (as specified in the loan contract) Asset security will never be required. If you take out loans in excess of $150,000 generally, you can get a personal guarantee and security in the form an asset charge.