FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Belmont Small Business Loans
Tell me about the Belmont Small Business Loans
Belmont unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
Apply to get the Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and have the funds 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 which means you know ahead of time the total amount due, which includes any interest, fees or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business reason, such as cash flow management, business renovations, marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal reasons.
About Larger Belmont Business Loans
What is the Larger Belmont Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been trading for at least 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funding be used for?
A Business Loan of a larger size can be used for nearly any company reason, such as business remodeling, buying inventory or new equipment as well as for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. This can be done by taking a charge over assets and can include the registration of this in the PPSR or registering as a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally based rather than defining security over a particular asset. The person who is signing the ensure is personally responsible if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR grants the priority of personal property granted according to the date a security interest that is registered.
Caveats are legal form of document to provide the legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250,000, we may offer an initial pre-approval that will help smooth out the process. It is possible to get this done without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial well-being questions. It’s in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you receive could be subject to different terms.
Application process
Are I eligible for funding?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in few minutes and an experienced business lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, plus interim financial statements for the current year, Aged Payables and Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K or more) We can usually provide a response in one hour if you make your application during standard business times and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statement, we’ll provide the decision within just an company day.
If you are applying for a Larger Business Loan ($100K and up) we may be able to provide you with pre-approval conditional to your application within six hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some deals have been approved in the space of 24 hours.
The quickest way to apply would be to ensure you apply during standard business hours, and let us use the advanced bank verification system link to verify your bank information online. If you opt to send us the copies of bank statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer within an hour if you submit your request during normal business time and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements we can offer a decision in just the span of one business day.
For Larger Business Loans ($100K and up) we might be likely to provide the conditional pre-approval within about 6 hours. Once you’ve 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. Certain agreements have been approved in 24 hours.
The fastest way would be to ensure you apply during normal business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statement, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a certain amount, we will consider a number of elements to determine your health of the business and the amount of repayments your business is able to afford. The total amount of your loan will be contingent on the specifics the company.
When you apply for a set amount, we will consider a number of elements to determine how much we can lend you such as well-being of the business and the extent of payments your business is able to afford. The amount you receive from your loan will be determined by the specific circumstances the business.
Fees & repayments
What is the cost for the cost of a company loan?
When you apply for one of our business loan, we’ll assess the risk profile that you have for your business and offer you with a customised proposal that includes the loan amount, the terms and interest rates. A company loan is an upfront priced loan which means you know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the amount I will be charged?
Business loan interest rates differ based on various factors including the amount borrowed, the company assets the funds will be used for and the sector the company operates in, the long the business is in operation as well as what percentage of the company has enough cash flow to pay for the loan, and general well-being as well as creditworthiness company.
What are the cost?
There are no hidden costs with our business loans. You’ll know exactly how much you need to pay, and when, right from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments punctually).
We do not charge an application fee. You can get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan earlier?
You can choose to repay the entire amount of your loan early at any time.
If you are deciding to take this route, please contact our helpful company loans specialists. They will provide you with details on repayment as well as an early payout amount. It will be calculated using the sum of the principal amount remaining and any accrued interest at the date of early payout and 1.5 percent of the remaining principal and any outstanding fees.
What are the repayment methods?
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. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing the ways we gather data, process, exchange and ensure the security of your information is of huge importance and an integral 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 dedication to customer security and security. We make use of an advanced bank verification system that allows you to instantly confirm your bank account information online, allowing us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an business owner utilises an asset they own to obtain a loan. The asset may be an individual asset, such as the family home or an company asset like a truck or piece of equipment.
The majority of lenders, not just the banks with the biggest size, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, the asset could be sold by the lender. In essence it is means of securing additional financing making use of the value of what you already own.
Should I need security to get a business loan?
Up to $150,000 in loans it is not necessary to secure assets before you are able to access the money however, we require a personal guarantee. require an individual guarantee. As long as you follow your loan commitments (as stipulated in your loan contract) Asset security is not needed. For loans that exceed $150K, generally there is an individual guarantee and security in the form charges on assets.