FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Gillman Small Business Loans
Tell me what you think of the Gillman Small Business Loans
Gillman unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from the traditional business loan?
Apply to get your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and funds may be on your account within 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. Our company loan is a cash-based loan so you will be aware in advance of the total amount due, which includes any interest, fees or charges. This is then broken down into either weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business use, including the management of cash flow, business improvements, advertising to purchase inventory or new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
About larger Gillman Business Loans
What is the Larger Gillman Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been operating for at least three years and have an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funds be used for?
A large business loan can be used for almost all business reason, such as business renovations, purchase of inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It’s by way of charge over assets, and could include registering this with the PPSR or filing as a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is general in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally liable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be assigned according to the date the security interest was registered.
Caveats are legal form of document to offer the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan that exceeds $250K it’s possible to offer an initial pre-approval to ease the process. It is possible to do this without a credit verification and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial well-being questions. This is neither an offer nor a guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you are offered could be on different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and a dedicated company loan specialist will call you to guide you through the process.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License), an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Information on the application including credit consent and 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, and interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we usually offer an answer within one hour – as long as you submit your request during quality business times and let us utilise the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements we can provide the decision within just one business day.
For Larger Business Loans ($100K up to $500,000) we might be capable of offer you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Certain deals have been approved within 24 hours.
The fastest way would be to ensure you apply during standard company hours. You can also permit us to use the modern bank verification to instantly check your bank’s information online. If you opt to send us the copies of bank statements , it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually offer a response in one hour if you make your application within standard business timings and let us use the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statements, we will be able to provide the decision in just one business day.
If you are applying for Larger Business Loans ($100K or more) we could be in a position to offer you with a conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Some agreements have been approved in less than 24 hours.
The fastest way can be ensure you apply during normal business hours. You can also allow us to use our modern bank verification link to check your bank’s information online. If you choose to send us copies of your bank statement, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a certain amount, we take into consideration a range of factors for determining your well-being for your business and the extent of the repayments your company can support. The total amount of your loan will depend on the specific circumstances the business.
When you apply for a particular amount, we take into consideration a variety of aspects to assess the health of the business and the extent of the repayments your business will be able to support. The amount you receive from your loan will be determined by the particulars the business.
Fees & repayments
How much do you charge for a company loan?
If you decide to apply for the company loans, we’ll assess the risk assessment the company and offer you with a tailored offer that includes the amount of the loan, the duration and interest rates. The company loan is an upfront cost loan and you’ll know the exact amount due, which includes any charges, interest rates or fees.
What determines the rate that I will be charged?
The interest rates on company loans rates vary due to factors like the amount of money borrowed, what company assets the funds will be used for in addition to the industry that the company is operating in, how long the company is in operation for, what percentage of the company has sufficient cash flow to cover the loan, and also the general health or creditworthiness of the company.
What are the charges?
There are no hidden fees with our business loans, and you’ll know precisely how much you be required to pay, and at what time, from the day you sign up. There’s not any compounding interest and no additional fees (as as you make your payments on time).
We do not charge an Application Fee. You are able to make an application for loans with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan early?
You can choose to repay the entire amount of the loan early at any time.
If you choose to take this route, please speak to our friendly company lending experts. We will provide you with details for repayment along with an early payout estimate. This is calculated as the total of the principal amount remaining and accrued interest to the date of early payout, plus 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work your cash flow cycle we offer repayments either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear the ways we gather, use, exchange and secure your information, is crucial 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 protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We make use of an advanced bank verification system link to immediately verify your bank account information online, allowing us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner borrows from an asset they own to secure the loan. The asset could be an individual property, such as the family home, or it could be a business asset like a truck or piece or equipment.
The majority of the lenders including the big banks, tend to guarantee loans against assets. If you’re struggling to pay back the loan then the asset might be offered for sale by the lender. In essence, it is means of securing additional financing taking advantage of the value of what you already have.
Are I need security to secure an company loan?
Up to $150K in loans the requirement for asset security is not required before you can access the money however, we require a personal guarantee. need a personal guarantee. So long as you comply with the terms of your loan (as stated in your loan contract) and you are able to meet your obligations, asset security will never be required. If you take out loans in excess of $150,000 generally, you can get an individual ensure and security in the form an asset charge.