FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Bondi Small Business Loans
Tell me how you are able to avail the Bondi Small Business Loans
Bondi unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from the traditional business loan?
You can apply to this Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional business loans refer to an annual rate of interest along with other charges and fees. We offer a company loan is an upfront priced loan which means you know in advance the total amount payable including any fees, interest or charges. Then, it is divided into a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost every business need, such as control of cash flow company remodels and marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
About larger Bondi Business Loans
What is the Larger Bondi Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been trading for at least 3 years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be used for?
A large business loan can be used for almost every company need, including company remodeling, buying inventory or new equipment for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It is usually by taking a charge on assets, which could also be registered on the PPSR or the registration of a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is generally based rather than specifying the security of a specific asset. The person signing the ensure is personally liable in the event that the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
Caveats are legal document that is filed to provide notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan of $250,000 or more we can offer an initial pre-approval that will help make the process. We could be able to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial well-being questions. It’s 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 are offered could be on different conditions.
Application process
Do I qualify for funds?
You may apply for a 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 the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just complete the online application in few minutes and an experienced company lending specialist will call you to help you.
To apply for up $100,000, you’ll require ID details (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent twelve months bank statement, an IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour, provided you submit your request in standard company time and you allow us to utilise the bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statements , we’ll be able to offer a decision within just the span of one company day.
For Larger Business Loans ($100K or more) we could be able to provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Certain offers have been approved within just 24 hours.
The quickest method can be ensure you apply during normal company hours and let us use the modern bank verification link to check your bank’s information online. If you opt to upload copies of your bank statements , it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour if you apply within standard business time and allow us to use the bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statement, we’ll offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be capable of offer you with a conditional pre-approval within 6 hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this can be faster depending on the specifics of each application. Certain agreements have been approved in just 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours, and allow us to use our advanced bank verification system link to check your bank’s information online. If you opt to upload copies of your bank statements it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a particular amount, we look at a variety of factors for determining your well-being of your business and the extent of the repayments your business can afford. The total amount of your loan will be contingent on the particular circumstances of your business.
When you make an application for a certain amount, we consider a variety of variables to assess the health of the business and the amount of the repayments your company can afford. The total amount of your loan will be contingent on the particulars of your business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to make an application for the company loans, we’ll assess the risk assessment the business and provide an individualised proposal that includes the loan amount, the terms and the interest rates. This company loan is an upfront priced loan therefore you will know the exact amount payable including any charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for business loans rates differ based on various factors including the amount of money borrowed, the business assets the funds will be used for, the industry the company operates in, how long the business is in operation for, how long the business has enough cash flow to fund the loan, and general well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our company loans. You’ll know precisely what you be required to pay, and when, from the very first day. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You can make an application for loans without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan early?
You can decide to repay all of your advance loan at any time.
If you are deciding to pursue this option, please call our helpful business credit professionals. The specialists will provide you with the details of your repayment as well as an early payout amount. The figure will be calculated as the total of the remaining principal amount and accrued interest to the time of the early payout, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
To make sure that you don’t miss due dates and also to be in line your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear how we collect, use, exchange and ensure the security of your information is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We make use of an advanced banking verification system to instantly confirm your bank account information online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where the business owner borrows from an asset that they own to obtain the funds for a loan. The asset can be either an asset belonging to the personal, like the family home or an business asset like a truck or piece of equipment.
The majority of banks, including the big banks, tend to guarantee loans against an asset. If you are having difficulty paying back the loan then your asset may be sold by the lender. In essence, it’s means of securing additional financing taking advantage of the value of what you already have.
Should I require security to get an business loan?
For loans up to $150K no asset security is required in advance to gain access to the funds but we do need a personal guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract document), asset security will never be required. For loans that exceed $150,000, typically, you will need the option of a personal guarantee and security that is in the form charges on assets.