FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Glenside Small Business Loans
Let me know what you think of the Glenside Small Business Loans
Glenside unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from an traditional business loan?
Apply for this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an instant response and have the funds on your account within 24 hours. Traditional company loans are based on an annual interest rate along with other charges and fees. Our business loan is a pre-paid loan which means you be aware of the amount you will have to pay, including the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company use, including control of cash flow business renovations, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal use.
About Larger Glenside Business Loans
What is the Larger Glenside Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been operating for at least three years with an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be used for?
A Business Loan of a larger size can be used for almost every business reason, such as company renovations, to purchase equipment or inventory or as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It is usually by way of charge on assets, and could include registration with the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature, rather than defining the security for a particular asset. The person who is signing the guarantee is personally responsible if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date the registration of a security interest.
The caveat can be described as a formal document that is filed to offer notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting larger company loans of $250,000 or more we may be able to provide an initial pre-approval in order to smooth out the process. We could be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial well-being questions. It’s in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you might receive could be subject to different terms.
The application process
Can I be eligible for funding?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Complete the online form in few minutes and an experienced company lending specialist will be in touch to guide you through the process.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually provide a response in one hour, provided you apply during standard company timings and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements , we will be able to offer the decision within just one company day.
If you are applying for a Larger Business Loan ($100K or more) we might be likely to provide you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Certain offers have been approved in less than 24 hours.
The quickest method can be make sure you apply during standard company hours. Also, let us use the modern bank verification to confirm your bank details online. If you choose to send us duplicates of your banking statements it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within an hour, provided you apply in standard business timings and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements, we are able to provide an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be capable of provide you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Certain transactions have received approval in just 24 hours.
The most efficient method for you to apply is ensure you apply during standard business hours, and allow us to use the advance bank verification link to check your bank’s information online. If you choose to upload documents from your account statements it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a certain amount we will consider a number of factors to determine the well-being of the business and the extent of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specifics the business.
If you apply for a particular amount, we consider a variety of variables to assess how much we can lend you such as health of the business as well as the amount of repayments that your business can afford. The total amount of your loan will be contingent on the specifics the company.
Fees & repayments
How much should you charge for the cost of a business loan?
When you apply for our company financing, we’ll assess the risk profile the company and provide you with a customised offer, including loan amount, term and interest rates. This business loan is an upfront-priced loan so you will be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What determines the amount I am charged?
The interest rates on company loans rates vary due to factors like the amount of money borrowed, what business assets the money are used to purchase and the sector the business operates in, the long the business has been in operation, in the event that the company has enough cash flow to support the loan, and the general well-being or creditworthiness of the business.
What are the cost?
There are no hidden fees with our business loans, and you’ll know precisely what you need to pay and at what time, from the very first day. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an application fee. You are able to apply for a loan with without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan earlier?
You may choose to pay back all of your loan at any point in time.
If you do decide to pursue this option, please contact our helpful business lending specialists. They’ll provide you with details on repayment along with an early payout estimate. This is calculated as the sum of the principal balance and any accrued interest at the time of early payment plus 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Security of your data, and being transparent about the ways we gather, use, exchange and protect your information, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We employ a highly sophisticated bank verification system that allows you to immediately verify your bank account information online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner makes use of assets they own to obtain the funds for a loan. The asset could be an individual asset, such as the family home or it could be a business asset such as a truck or other piece of machinery.
The vast majority of the lenders including the major banks, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, then the asset might be sold by the lender. In essence, it is the process of securing new funding using the worth of the asset you already have.
Should I need security to secure an company loan?
For loans of up to $150,000, there is no requirement for asset security in advance to gain access to the funds, however we require a personal guarantee. require the personal guarantee. If you adhere to your loan commitments (as specified in your loan contract) the security of assets is not required. For loans that exceed $150K, typically, you will need the option of a personal guarantee and security in the form charges on assets.