FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Glenelg East Small Business Loans
Let me know more about Glenelg East Small Business Loans
Glenelg East unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and the funds could be available in just 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. The business loan is a pre-paid loan so you will know ahead of time the total amount payable including any fees, interest or charges. This is then divided into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company use, including control of cash flow business remodeling, marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal use.
About Larger Glenelg East Business Loans
What is the Larger Glenelg East Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage 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 trading for at least 3 years, and have an annual income of $700K. Your company must belong to 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 to prove at the least 12 months of operating.
How can the funding be used for?
A Larger Business Loan can be used to fund almost every company purpose including company renovations, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This is in the form of a charge over assets, which could also include registering this with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally in nature rather than defining the security for a particular asset. The person who is signing the guarantee is personally accountable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR permits the priority of personal property assigned according to the date a registration of a security interest.
Caveats are legal document filed to provide notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan of more than $250,000 we may be able to provide an initial pre-approval in order to make the process. We may be able to make this decision without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering some financial health questions. It’s not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you are offered could be subject to different terms.
Application process
Do I qualify for funds?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a few minutes and a dedicated business expert in lending will contact you to guide you through the process.
To apply for up to $100,000, you’ll need ID details (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K and up) We can usually provide an answer in just one hour – as long as you submit your request at standard business time and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we’ll be able to provide a decision within 1 company day.
For the Larger Business Loan ($100K or more) we might be capable of provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Some deals have been approved in 24 hours.
The quickest method for you to apply is make sure you apply during normal company hours. You can also allow us to use the modern bank verification to verify your bank information online. If you opt to send us the copies of bank statements , it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we can often offer an answer within an hour – provided you make your application during standard business hours and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statements we can provide an answer in as little as 1 business day.
For the Larger Business Loans ($100K to $500K) we could be capable of provide you with conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved within less than 24 hours.
The fastest way would be to make sure you apply during normal business hours, and allow us to use the modern bank verification link to confirm your bank details online. If you choose to upload the copies of bank statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount, we consider a variety of variables to determine how much we can lend you well-being for your company and the amount of payments your business can support. The amount you receive from your loan will depend on the specifics the business.
If you apply for a specific amount we consider a variety of variables to determine your well-being of your business and the level of repayments your company can afford. The amount you receive from your loan will be determined by the particular circumstances the company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for our company loan, we’ll assess the risk profile for your business and offer you with a tailored offer that includes the loan amount, the terms and interest rates. This company loan is a loan that is priced upfront and you’ll know the exact amount due, which includes any charges or interest.
What determines the amount I pay?
The interest rates on company loans rates differ based on various factors such as the amount that is borrowed, what business assets the funds are used to purchase as well as the field the business is operating in, how long the company has been running and what percentage of the company has enough cash flow to support the loan, as well as the general well-being as well as creditworthiness company.
What are the fees?
There are no hidden costs with our business loans, and you’ll know exactly how much you’ll need to pay and when, starting from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can request a credit loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with 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 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can repay all of your loan at any point in time.
If you choose to take this route, please call our helpful company credit professionals. They will offer you with the details of your repayment and an early payout figure. This will be calculated as the sum of the principal balance and the accrued interest up to the time of the early payout in addition to 1.5 percent of the principal amount remaining plus any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line with your cash flow routine, we provide payments that are either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect, use, exchange and protect your information, is crucial and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We make use of an advanced bank verification system that allows you to instantly verify your bank account details online, allowing us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an company owner makes use of an asset that they own to get a loan. The asset may be a personal asset like the family home, or it could be a business property like a truck as well as a piece of machine.
The vast majority of banks, even the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, the asset might be sold by the lender. In essence it’s the process of securing new funding taking advantage of the value of what you already have.
Should I need security to get an business loan?
For loans that exceed $150K, it is not necessary to secure assets before you are able to access the money, however we require a personal guarantee. require the personal guarantee. If you adhere to your loan commitments (as stipulated in your loan contract) Asset security will never be required. If you take out loans in excess of $150,000 typically, you will need the option of a personal guarantee and security that is in the form a charge over assets.