FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Bexley Small Business Loans
Tell me what you think of the Bexley Small Business Loans
Bexley unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from an traditional company loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes over the phone, receive an instant response and the money could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum along with other charges and fees. This business loan is a cash-based loan so you will know in advance the amount you will have to pay, including any interest, fees or charges. This is then divided into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business use, including the management of cash flow, business remodels and marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Bexley Business Loans
What is the Larger Bexley Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to be in operation for at least 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A larger company loan is a great option for almost all company need, including business renovations, purchase of new equipment or inventory, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It is usually by taking a charge against assets, which could also include registration in the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally based rather than specifying the security for a particular asset. The person who is signing the guarantee is personally responsible if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR gives preference over private property assigned according to the date a security interest was registered.
A caveat is a legal document lodged to provide notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250K it’s possible to offer an initial pre-approval to smooth out the process. It is possible to get this done without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial well-being questions. This is not an offer or guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer that you may receive may be subject to different terms.
The application process
Do I have the right to receive funds?
You may apply for a 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 demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Just complete the online application in few minutes and a dedicated business lending specialist will be in touch to guide you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) as well as a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details for application including credit consent and 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer in just one hour – as long as you submit your request in standard company hours and allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements we can offer an answer within just the span of one business day.
For Larger Business Loans ($100K or more) we might be likely to provide you with conditional pre-approval in around six hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Some offers have been approved within 24 hours.
The most efficient method would be to make sure you apply during standard company hours. Also, permit us to use the modern bank verification to verify your bank account information online. If you opt to send us documents from your account statements it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) We can usually provide a response in one hour if you make your application during standard business times and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements, we’ll be able to provide an answer in just an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be in a position to provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours and let us use the advance bank verification link to instantly verify your bank information online. If you opt to upload duplicates of your banking statements 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. If you apply for a certain amount, we look at a variety of elements in order to assess how much we can lend you health for your business and the amount of repayments that your company will be able to support. The amount you receive from your loan will depend on the specific circumstances of your company.
When you submit an application for a set amount, we consider a variety of aspects to determine the well-being for your business and the level of payments your company can support. The total amount of your loan will be determined by the specifics the company.
Fees & repayments
What is the cost for the cost of a business loan?
When you apply for business loans with us business loans, we’ll assess the risk assessment that you have for your company and provide an individualised offer including the amount of the loan, the duration and interest rates. The company loan is a loan that is priced upfront which means you know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for business loans rates depend on a variety of factors including the amount that is borrowed, what company assets the money will be used for in addition to the industry that the business operates in, how long the business has been operating, in the event that the company has sufficient cash flow to cover the loan, and overall well-being or financial standing of the company.
What are the costs?
There are no hidden costs with our company loans, and you’ll be aware of the amount it is that you need to pay and when, from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans with no cost upfront or any obligation to sign up.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for 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 entire amount of the advance loan at any time.
If you are deciding to do this please call our helpful business loans experts. We will provide you with the details of your repayment as well as an early payout amount. This will be calculated as the total of the principal balance plus any accrued interest as of the date of early payout plus 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To help you avoid missing payments and to work your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about the ways we gather, use, exchange and safeguard your data, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated banking verification system to immediately confirm your bank account information online. This allows us to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner makes use of an asset that they own to make the funds for a loan. The asset can be a personal asset like the family home, or a company asset such as a vehicle as well as a piece of machine.
The majority of lending institutions, including the largest banks, are inclined to guarantee loans against an asset. If you have trouble paying back the loan, your asset may be taken over by the lender. In essence it is a way of securing new funding making use of the value of what you already own.
Should I need security for an company loan?
Up to $150,000 in loans it is not necessary to secure assets prior to the loan’s access however, we do require an individual guarantee. In the event that you fulfill the loan terms (as stated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150K generally, there is a personal ensure and security is provided in the form of a charge over assets.