FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Brown Owl Small Business Loans
Let me know about the Brown Owl Small Business Loans
Brown Owl unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional business loan?
It is possible to apply for this Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and the money could be in your account in 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. We offer a company loan is an upfront priced loan which means you know ahead of time the total amount to be paid, including any interest, fees or charges. This is then broken down into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company need, such as cash flow management, business remodeling, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
About the Larger Brown Owl Business Loans
What is the Larger Brown Owl Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the company needs to be trading for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funding be used for?
A Business Loan of a larger size can be used for nearly any company need, including business remodeling, buying equipment or inventory for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It’s as a result of an charge on assets and can be registered on the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to repay credit that is general in nature rather than stipulating the security for a particular asset. The person who is signing the ensure is personally responsible if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR gives the priority of personal property granted depending on the date that a security interest has been registered.
A caveat is a legal document lodged to offer notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of more than $250K we can offer an initial pre-approval to make the process. We could be able to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial well-being checks. It is neither an offer nor a guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer you receive could be based on different conditions.
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 company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and an experienced company expert in lending will be in touch to assist you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Application details including credit consent as well as 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer in just one hour if you submit your request during standard company hours and permit us to utilise the bank verification system to immediately verify your bank account information online. If you decide to upload copies of your bank statement, we’ll offer a decision within the span of one business day.
For Larger Business Loans ($100K and up) we may be in a position to offer you with a conditional pre-approval within 6 hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved within 24 hours.
The fastest way would be to ensure you apply during standard business hours, and allow us to use the advance bank verification link to instantly verify your bank information online. If you opt to upload documents from your account accounts, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) We can usually provide an answer in just one hour, provided you make your application during standard business time and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements, we are able to offer the decision within one business day.
For the Larger Business Loans ($100K up to $500,000) we might be able to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within 24 hours.
The fastest way can be make sure you apply during normal business hours. You can also allow us to use the advanced bank verification system link to instantly verify your bank account information online. If you opt to upload documents from your account statement, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of variables to determine the well-being that is your company and the amount of repayments that your company is able to afford. The total amount of your loan will depend on the specific circumstances the business.
When you submit an application for a particular amount, we consider a variety of aspects to assess how much we can lend you such as well-being that is your company and the amount of repayments that your business can support. The amount you receive from your loan will depend on the particulars the business.
Fees & repayments
How much do you charge for the cost of a company loan?
When you make an application for business loans with us business credit, we will assess the risk profile the company and offer you with a tailored proposal that includes loan amount, term and the interest rates. It is a business loan is an upfront-priced loan therefore you will know the exact amount due, which includes any interest rates, fees or charges.
What determines the amount I will be charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, what business assets the money are used to purchase and the sector the business operates in, the long the business is in operation for, in the event that the company has sufficient cash flow to support the loan, and general health as well as creditworthiness company.
What are the costs?
There are no hidden fees with our company loans, and you’ll be aware of the amount you’ll be required to pay, and at what time, from the day you sign up. There’s no 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 can apply for a loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the total amount of your loan at any point in time.
If you are deciding to do this please call our helpful business loans experts. They’ll provide you with repayment details along with an early payout estimate. This is calculated as the total of the principal amount remaining and the accrued interest up to the time of early payment in addition to 1.5% of the remaining principal plus any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about how we collect the information we collect, use, share and ensure the security of your information is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We use an advanced bank verification system that allows you to immediately verify your bank account details online to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an business owner utilises the assets they have to secure the loan. The asset can be a personal asset like the family home, or a business asset such as a vehicle or piece or equipment.
The majority of the lenders not just the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan, then your asset may be sold by the lender. In essence, it is means of securing new financing taking advantage of the value of what you already have.
Are I need security to get a company loan?
For loans of up to $150K, it is not necessary to secure assets in advance to gain access to the funds However, we require a personal guarantee. require a personal guarantee. So long as you comply with the loan terms (as stated in your loan contract document) Asset security is not needed. If you take out loans in excess of $150,000 generally there is the option of a personal guarantee and security in the form of a charge over assets.