FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Glenalta Small Business Loans
Let me know more about Glenalta Small Business Loans
Glenalta unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from the traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and funds may be in your account within 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. This business loan is an upfront priced loan which means you know in advance the total amount payable including any fees, interest or charges. Then, it is divided into a daily or weekly payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business reason, such as control of cash flow company improvements, advertising to purchase inventory, new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Glenalta Business Loans
What is the Larger Glenalta Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been operating for at least three years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost all company reason, such as business remodeling, buying new equipment or inventory, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This can be done by taking a charge over assets, and may include registration in the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to repay credit that is general in nature, rather than defining the security of a specific asset. The person signing the ensure is personally liable in the event that the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR allows the priority of personal property assigned according to the date the registration of a security interest.
Caveats are legal document filed to provide the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan of $250,000 or more it is possible to offer an initial pre-approval in order to smooth out the process. We might be able to do this without a credit verification and within six hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial health checks. It is not an offer or guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you are offered could have different conditions.
Application process
Do I qualify for funds?
You are eligible to 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 company (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 trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a few minutes and a dedicated business loan specialist will be in touch to help you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within one hour if you submit your request during quality company hours and you allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statement, we’ll provide a decision within just 1 company day.
For the Larger Business Loan ($100K or more) we could be likely to provide you with conditional pre-approval within about six hours. After 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 specifics of each application. Certain agreements have been approved within less than 24 hours.
The most efficient method is to make sure you apply during normal company hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you opt to upload duplicates of your banking statement, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we usually provide an answer within one hour, provided you submit your request during standard business hours and allow us to use the bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements we can offer the decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be able to provide you with pre-approval conditional to your application within about six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Some agreements have been approved within 24 hours.
The most effective method can be ensure you apply during standard business hours. You can also permit us to use the advance bank verification to instantly verify your bank information online. If you decide to upload duplicates of your banking statement, 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 make an application for a specific amount we look at a variety of elements that determine the health for your business and the amount of repayments that your company can support. The amount you receive from your loan will be contingent on the specifics of your business.
When you submit an application for a certain amount, we will consider a number of elements to assess the well-being for your business as well as the amount of the repayments your company is able to afford. The total amount of your loan will be contingent on the specifics for your company.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to request business loans with us company financing, we’ll assess the risk assessment that you have for your company and provide you with a customised offer, including the amount of loan, the term and interest rates. A company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Business loan interest rates vary due to variables like the amount to be of money borrowed, the company assets the money are used to purchase and the sector the company operates in, how long the business has been in operation for, how long the company has enough cash flow to support the loan, as well as the overall health or financial standing of the company.
What are the fees?
There are no hidden fees with our business loans. You’ll be aware of the amount you be required to pay and when, starting from the first day. There’s no compounding interest and no extra fees (as as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can choose to repay the total amount of your loan in full at any time.
If you decide to pursue this option, please contact our helpful business loans professionals. They’ll provide you with details on repayment as well as an early payout amount. It will be calculated using the total of the principal remaining and accrued interest to the time of early payment in addition to 1.5% of the principal balance as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We employ an exceptionally sophisticated banking verification system to immediately confirm your bank account information online so we can provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a business owner uses an asset they own to make a loan. The asset may be an individual property, such as the family home, or an business asset such as a vehicle as well as a piece of machine.
The majority of banks, not just the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, then your asset may be transferred to the lender. In essence it is an opportunity to secure new financing using the worth of the asset you already own.
What do I need security for an business loan?
Up to $150K in loans no asset security is required in advance to gain access to the funds, however we do require a personal guarantee. As long as you follow the terms of your loan (as detailed in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150K, typically, you will need a personal ensure and security in the form an asset charge.