FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Beach Haven Small Business Loans
Tell me more about Beach Haven Small Business Loans
Beach Haven unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
You can apply to the Small Business Loan in under 10 minutes over the phone, receive an immediate response, and funds may be in your account in 24 hours. Traditional company loans reference an annual rate of interest together with additional fees and charges. Our business loan is a pre-paid loan so you will be aware of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost every company use, including the management of cash flow, business remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
About larger Beach Haven Business Loans
What is the Larger Beach Haven Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be in operation for at least 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used to fund almost all company purpose including company remodeling, buying new equipment or inventory for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. It’s in the form of a charge against assets, and could include the registration of this with the PPSR or filing as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is generally in nature rather than defining security over an asset. The person who signs the ensure is personally responsible if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including objects or assets). The PPSR allows priority over personal property to be granted depending on the date that a registration of a security interest.
A caveat is a legal document filed to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan of more than $250K we can offer a preliminary pre-approval to help smooth out the process. We might be able to do this without a credit check and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial well-being checks. It’s in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you might receive could be on different terms.
The application process
Do I qualify for funds?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in few minutes and a dedicated business credit specialist will be in touch to guide you through the process.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank statements, IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we typically offer a response in one hour if you apply in quality business timings and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements , we are able to provide a decision in as little as the span of one business day.
For the Larger Business Loan ($100K to $500K) we could be able to provide you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Some deals have been approved in the space of 24 hours.
The quickest way to apply can be ensure you apply during standard business hours and permit us to use the modern bank verification link to verify your bank information online. If you choose to upload the copies of bank statement, it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour, provided you apply during standard business times and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements, we are able to provide a decision in just an business day.
For Larger Business Loans ($100K to $500K) we could be capable of provide you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some offers have been approved in 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours. Also, allow us to use our advance bank verification link to instantly verify your bank information online. If you opt to send us documents from your account accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we look at a variety of factors for determining how much we can lend you health that is your company and the extent of repayments your business will be able to support. The total amount of the loan will be determined by the specifics of your company.
When you apply for a particular amount, we take into consideration a variety of elements to determine how much we can lend you such as health for your business and the level of payments your company can afford. The total amount of the loan will be determined by the specific circumstances for your company.
Fees & repayments
What is the cost for an business loan?
If you decide to make an application for our company financing, we will assess the risk profile that you have for your company and offer you with a customised offer, including the amount of the loan, the duration and interest rates. It is a business loan is a loan that is priced upfront therefore you will know the exact amount to be paid, including any charges or interest.
What is the factor that determines the price I pay?
Interest rates for business loans rates differ based on various factors such as the amount that is borrowed, what business assets the money will be used for, the industry the business is operating in, how long the company has been operating, whether the company has enough cash flow to support the loan, and the general well-being or creditworthiness of the company.
What are the cost?
There are no hidden costs with our company loans. You’ll know precisely what it is that you need to pay and when, starting from day one. There’s no compounding and no extra fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You can get a cash loan with no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan in advance?
You can choose to repay the total amount of your advance loan at any time.
If you decide to pursue this option, please contact our helpful company credit experts. They will offer you with the details of your repayment and an early payment figure. This will be calculated as the sum of the principal balance and accrued interest to the time of the early payout and 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing how we collect data, process, exchange and safeguard your data, is crucial and an integral 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 protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We make use of an advanced bank verification system that allows you to instantly confirm your bank account information online so we can offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner utilises assets they own to make a loan. The asset can be an individual asset, such as the family home or a company asset like a truck or piece of equipment.
The majority of the lenders including the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan, then your assets could be transferred to the lender. In essence it’s means of securing new financing taking advantage of the value of what you already have.
Are I require security to get an company loan?
For loans of up to $150K, the requirement for asset security is not required before you are able to access the money However, we do require a personal guarantee. In the event that you fulfill your loan commitments (as specified in your loan contract), asset security will never be required. For loans that exceed $150K, generally, you are able to get the option of a personal guarantee and security in the form charges on assets.