FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Gepps Cross Small Business Loans
Let me know how you are able to avail the Gepps Cross Small Business Loans
Gepps Cross unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from a traditional company loan?
Apply for your Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and the money could be in your account in 24 hours. Traditional business loans have an annual rate of interest together with additional fees and charges. Our company loan is a cash-based loan therefore you’ll know ahead of time the amount you will have to pay, including the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company reason, such as cash flow management, business remodels and 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 Gepps Cross Business Loans
What is the Larger Gepps Cross Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to have been in operation for at least 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funds be utilised?
A larger business loan can be used for nearly all company reason, such as company improvements, purchasing equipment or inventory 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 necessary to obtain funding above $150,000. It’s by way of charge against assets, and could include registration through the PPSR or making a caveat.
A personal or director’s ensure is a commitment to repay a loan which is generally in nature rather than defining the security of a specific asset. The person signing the guarantee is personally liable in the event that the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR grants preference over private property granted according to the date the security interest that is registered.
A caveat is a legal document that is filed to offer an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans of $250,000 or more we may be able to provide a preliminary pre-approval to help ease the process. We may be able to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health questions. It is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an assessment of your creditworthiness and any offer that you are offered 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 business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in few minutes and an experienced business expert in lending will contact you to assist you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent as well as 12 months bank statement, an IRD statements, last 2 years finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) we typically provide an answer within one hour, provided you make your application during quality business times and permit us to use the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements we can offer a decision in as little as 1 business day.
For the Larger Business Loan ($100K to $500K) we might be in a position to provide you with a conditional pre-approval within about six hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some transactions have received approval within just 24 hours.
The fastest way can be make sure you apply during normal company hours. You can also allow us to use our advance bank verification link to instantly verify your bank account information online. If you decide to send us copies of your bank accounts, it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour – provided you make your application within normal business timings and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements, we are able to provide a decision within an business day.
For the Larger Business Loans ($100K to $500K) we may be likely to offer the conditional pre-approval in about six hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some deals have been approved in less than 24 hours.
The fastest method would be to make sure you apply during normal business hours. Also, allow us to use our sophisticated bank verification link to instantly verify your bank account information online. If you decide to send us documents from your account accounts, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a certain amount, we will consider a number of factors to determine the well-being that is your business and the level of the repayments your business is able to afford. The total amount of the loan will be determined by the particular circumstances for your company.
When you submit an application for a certain amount, we take into consideration a variety of elements to determine how much we can lend you such as health for your business and the level of repayments that your company can support. The amount you receive from your loan will be determined by the specific circumstances for your business.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to request one of our business credit, we will assess the risk profile that you have for your business and offer you with a customised offer including the amount of loan, the term and interest rates. This company loan is an upfront-priced loan therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What determines the amount I am charged?
Interest rates for business loans rates depend on several factors such as the amount that is borrowed, the company assets the money will be used for, the industry the company is in, how long the business has been operating and in the event that the business has enough cash flow to pay for the loan, and also the overall well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden charges with our company loans, and you’ll know precisely how much you’ll need to pay, and when, starting from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to get a cash loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can choose to repay the entire amount of your loan in full at any time.
If you decide to pursue this option, please talk to one of our helpful business loans professionals. The professionals will offer you with details for repayment and an early payment figure. This will be calculated as the total of the remaining principal amount and the accrued interest up to the date of early payout, plus 1.5 percent of the remaining principal as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as protect your information, is of huge importance and an integral 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 sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We use an advanced bank verification system that allows you to instantly verify your bank account information online, allowing us to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from assets they own to secure the funds for a loan. The asset can be an individual property, such as the family home or it could be a business asset such as a vehicle or piece of equipment.
The majority of banks, not just the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan, then the asset could be sold by the lender. In essence, it is a way of securing new funding taking advantage of the value of what you already have.
Do I need security to get an company loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money however, we require a personal guarantee. need a personal guarantee. So long as you comply with your loan obligations (as stated in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans over $150,000 generally there is a personal ensure and security in the form a charge over assets.