FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Bogangar Small Business Loans
Let me know about the Bogangar Small Business Loans
Bogangar unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an ordinary company loan?
Apply to this Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the money could be in your account in 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. The business loan is an upfront priced loan therefore you’ll be aware in advance of the total amount payable including the interest, fees and charges. Then, it is divided into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every company need, such as managing cash flows, company improvements, advertising to purchase inventory, new equipment, or as general working capital and much more. The loan is not available for personal purposes.
About larger Bogangar Business Loans
What is the Larger Bogangar Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, 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 that is this large, your business needs to have been trading for at least 3 years with an annual turnover of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size can be used to fund almost every business need, including 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 required to access funding over $150,000. This is as a result of an charge against assets, and may be registered in the PPSR or registering as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature rather than stipulating the security for a particular asset. The person signing the ensure is personally liable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR grants preference over private property granted depending on the date that a security interest has been registered.
Caveats are legal form of document to provide notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250K we can offer an initial pre-approval in order to simplify the process. It is possible to get this done without a credit check and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial well-being questions. It’s neither an offer nor a guarantee of financing. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you might receive could have different terms.
Application process
Are I eligible for funding?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form in few minutes and a dedicated business lending specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank statements, IRD statement, last 2 years finalised financial statements, in addition to interim financial statements for the current year, Aged Payables and Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour, provided you submit your request in quality business hours and let us use the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements , we are able to provide the decision in as little as one business day.
For the Larger Business Loan ($100K and up) we could be in a position to provide the conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The most efficient method for you to apply is ensure you apply during normal company hours and allow us to use the advance bank verification to instantly check your bank’s information online. If you opt to send us documents from your account statements , it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we usually offer an answer in just one hour – as long as you submit your request in standard business time and permit us to use the bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statement, we’ll provide a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be likely to offer you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some agreements have been approved within 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, let us use the advanced bank verification system link to verify your bank account information online. If you send us the copies of bank statements it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of elements for determining how much we can lend you well-being for your company as well as the amount of repayments your company is able to afford. The amount you receive from your loan will be contingent on the specifics for your company.
When you submit an application for a set amount, we take into consideration a variety of variables to determine your health that is your business and the level of repayments your company can support. The total amount of your loan will depend on the specifics that are unique to your company.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to request our business loans, we will assess the risk profile for your business and offer you with a customised offer that includes the loan amount, the terms and interest rates. The company loan is a loan that is priced upfront therefore you will know the exact amount to be paid, including any charges or interest.
What determines the rate that I am charged?
Interest rates for company loans rates depend on a variety of factors like the amount of money borrowed, what business assets the money are used to purchase, the industry the business is in, how long the business has been running as well as what percentage of the business has enough cash flow to support the loan, and the general health or financial standing of the business.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you’ll be required to pay, and when, right from the first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan earlier?
You may choose to pay back the entire amount of your loan at any point in time.
If you choose to take this route, please call our helpful company credit experts. We will offer you with repayment details and an early payment figure. This is calculated as the total of the principal remaining and any accrued interest at the date of early payout and 1.5% of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work with your cash flow routine, we offer repayments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear the ways we gather data, process, exchange and safeguard your data, is vital and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to customer security and privacy. We make use of an advanced bank verification system to instantly verify your bank account information online. This allows us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an company owner borrows from an asset that they own to obtain 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 banks, not just the banks with the biggest size, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, the asset might be transferred to the lender. In essence it is a way of securing new financing by using the value of what you already have.
Do I require security to secure an company loan?
For loans that exceed $150,000, there is no requirement for asset security upfront to access the money however, we do need the personal guarantee. So long as you comply with the terms of your loan (as detailed in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans over $150K generally, there is an individual guarantee and security in the form of the charge of assets.