FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Bombay Small Business Loans
Tell me what you think of the Bombay Small Business Loans
Bombay unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
The application to get this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and the money could be available in just 24 hours. Traditional business loans reference an annual rate of interest plus other fees and charges. This business loan is a loan that is priced upfront which means you know in advance the amount you will have to pay, including the interest, fees and charges. This is then broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company need, such as cash flow management, business remodeling, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan is not available to fund personal expenses.
About Larger Bombay Business Loans
What is the Larger Bombay Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been in operation for at least 3 years with an annual turnover of $700,000. It is necessary to 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 minimum 12 months of business.
How can the funding be used for?
A Larger Business Loan can be used to fund almost every business reason, such as company renovations, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It’s as a result of an charge on assets, which could also include the registration of this in the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally based rather than stating security over a particular asset. The person signing the guarantee is personally accountable if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR gives the priority of personal property assigned according to the date a registration of a security interest.
A caveat is a legal document filed to provide notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger company loans of more than $250,000 we may be able to provide an initial pre-approval to simplify the process. We might be able to make this decision without credit checks and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial well-being checks. It is not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you might receive could have different conditions.
Application process
Do I qualify for funds?
You can apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a couple minutes, and a dedicated company loan specialist will call you to assist you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s Licence), a valid NZBN/IRD as well as at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we usually provide a response in one hour if you submit your request during standard company time and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statements , we are able to offer the decision within just one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be likely to offer the conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Some transactions have received approval within 24 hours.
The quickest method would be to make sure you apply during standard business hours. Also, permit us to use the modern bank verification to instantly verify your bank information online. If you decide to send us the copies of bank statement, it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour, provided you make your application at normal business timings and permit us to use the bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statement, we’ll offer an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be likely to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based on the circumstances of each application. Some offers have been approved within just 24 hours.
The most efficient method would be to make sure you apply during standard business hours. You can also allow us to use the modern bank verification to confirm your bank details online. If you send us duplicates of your banking statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a certain amount we consider a variety of elements for determining the health for your company and the amount of repayments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances of your company.
When you make an application for a specific amount we consider a variety of elements to assess how much we can lend you such as well-being of the business and the extent of the repayments your business can support. The total amount of your loan will be determined by the specific circumstances the business.
Fees & repayments
How much do you charge for an business loan?
If you decide to request our company loan, we’ll assess the risk profile for your business and offer an individualised offer that includes the amount of the loan, the duration and interest rates. It is a business loan is an upfront-priced loan so you will know in advance the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I pay?
Interest rates for company loans rates differ based on various variables like the amount to be borrowed, the business assets the funds will be used for in addition to the industry that the business is operating in, how long the business has been in operation as well as whether the business has sufficient cash flow to support the loan, and overall health or creditworthiness of the company.
What are the charges?
There are no hidden costs for our business loans. You’ll know precisely what you need to pay, and at what time, from day one. There’s not any compounding interest and no extra fees (as as you make your payments on time).
We don’t charge an Application Fee. You can request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay off the loan early?
You can repay the entire amount of the loan early at any time.
If you do decide to take this route, please speak to our friendly company lending professionals. We will offer you with repayment details along with an early payout estimate. This is calculated as the total of the principal amount remaining and accrued interest to the time of early payment, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To make sure you do not miss repayments and to fit in your cash flow cycle we offer repayments either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being transparent about the ways we gather the information we collect, use, share and secure your information, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We use an advanced banking verification system to immediately confirm your bank account information online so we can offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the business owner uses an asset that they own to secure the funds for a loan. The asset can be either an individual property, such as the family home or a company asset such as a vehicle or piece of equipment.
The majority of banks, not just the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan, then your asset may be taken over by the lender. In essence, it is means of securing new funding using the value of what you already own.
Should I require security to secure a business loan?
For loans that exceed $150,000, the requirement for asset security is not required upfront to access the money however, we do require a personal guarantee. As long as you follow the loan terms (as stipulated in your loan contract document) the security of assets is not needed. For loans of over $150,000 generally, there is an individual guarantee and security is provided in the form of an asset charge.