FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Goodwood Small Business Loans
Tell me about the Goodwood Small Business Loans
Goodwood unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from the traditional business loan?
It is possible to apply to the Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and have the funds available in just 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. The company loan is a loan that is priced upfront so you will know ahead of time the total amount due, which includes any fees, charges or charges. This is then broken down into either a daily or weekly repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company use, including control of cash flow business renovations, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Goodwood Business Loans
What is the Larger Goodwood Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to be operating for at least three years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be used for?
A larger company loan is a great option for almost all business purpose including company renovations, to purchase equipment or inventory for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. It is usually in the form of a charge on assets and can be registered through the PPSR or making a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature, rather than defining the security of a specific asset. The person who is signing the ensure is personally responsible if the business borrower is unable to re-pay 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 registered in respect of personal property (including objects or assets). The PPSR gives preference over private property granted according to the date the security interest that is registered.
An affidavit is an official document lodged to provide an official notice of a claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan of more than $250,000 it is possible to offer an initial pre-approval to ease the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being questions. This is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer you receive could be on different conditions.
The 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 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in just a few minutes, and a dedicated business expert in lending will call you to guide you through the process.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year such as age-related payables and aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer within one hour, provided you make your application at quality business timings and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements , we’ll be able to offer the decision in as little as the span of one company day.
For the Larger Business Loan ($100K and up) we could be in a position to offer the conditional pre-approval in around 6 hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this can be quicker based on the specifics of each application. Some transactions have received approval in just 24 hours.
The quickest way to apply would be to make sure you apply during standard business hours and let us use the modern bank verification link to verify your bank account information online. If you upload duplicates of your banking statements , it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within one hour – as long as you submit your request during normal business times and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements, we are able to offer an answer in just an business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to offer the conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Certain deals have been approved in just 24 hours.
The fastest method is to make sure you apply during standard business hours. You can also permit us to use the advanced bank verification system to verify your bank information online. If you decide to upload copies of your bank statement, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of variables to determine your well-being of the company as well as the amount of repayments your business can afford. The total amount of your loan will depend on the specific circumstances for your company.
If you apply for a specific amount we consider a variety of elements to determine how much we can lend you such as well-being of the company and the level of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the particulars for your company.
Fees & repayments
How much should you charge for an business loan?
When you apply for one of our company loans, we will assess the risk assessment for your company and offer you with a tailored offer that includes loan amount, term and interest rates. A business loan is an upfront cost loan and you’ll know the exact amount payable including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
The interest rates on company loans rates differ based on various variables like the amount to be that is borrowed, what company assets the money will be used for and the sector the company operates in, the long the company is in operation, what percentage of the company has sufficient cash flow to fund the loan, and also the overall health as well as creditworthiness company.
What are the cost?
There are no hidden fees with our company loans, and you’ll be aware of the amount you’ll need to pay, and when, right from the day you sign up. There’s no compounding and there are no additional charges (as as long as you pay your payments in time).
We don’t charge an Application Fee. You can make an application for loans with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You can repay all of your loan in full at any time.
If you choose to take this route, please speak to our friendly business lending professionals. The experts will provide you with details for repayment and an early payment figure. The figure will be calculated as the total of the remaining principal amount and accrued interest to the time of the early payout, plus 1.5% of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss repayments and to fit in with your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear the ways we gather information, use it, and exchange it, as well as 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 utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We make use of an advanced banking verification system to instantly verify the bank account details online, allowing us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the company owner makes use of an asset they own to make the loan. The asset may be a personal asset like the family home, or an company property like a truck or piece of equipment.
The majority of lending institutions, not just the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan, the asset might be transferred to the lender. In essence it is means of securing new funding making use of the value of what you already have.
What do I need security to secure a company loan?
For loans up to $150,000 no asset security is required upfront to access the money, however we require a personal guarantee. require an individual guarantee. As long as you follow the terms of your loan (as specified in your loan contract) and you are able to meet your obligations, asset security is not required. For loans over $150K generally, you are able to get personal guarantee and security that is in the form the charge of assets.