FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Gould Creek Small Business Loans
Let me know how you can avail the Gould Creek Small Business Loans
Gould Creek unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
You can apply for this Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and have the funds available in just 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. Our company loan is an upfront priced loan and you’ll be aware of the total amount payable including any fees, charges or charges. Then, it is broken down into a daily or weekly payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company use, including the management of cash flow, business remodeling, marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal use.
About larger Gould Creek Business Loans
What is the Larger Gould Creek Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been trading for at least 3 years and generate an annual revenue of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funds be used for?
A larger business loan is a great option for almost every business need, including company renovations, to purchase new equipment or inventory for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is as a result of an charge on assets and can include registering this on the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally in nature rather than stipulating security over an asset. The person who signs the guarantee is personally responsible if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains 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 granted in accordance with the date on which a security interest was registered.
Caveats are legal document that is filed 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 larger company loans that exceeds $250,000 it is possible to offer a preliminary pre-approval to help make the process. It is possible to get this done without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial well-being questions. It is not an offer or guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer you receive could be subject to different terms.
The application process
Do I have the right to receive funds?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a couple minutes, and a dedicated business loan specialist will call you to assist you.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s License), a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) We can usually offer an answer in just one hour – as long as you make your application at standard business hours and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statements we can provide the decision in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K and up) we might be in a position to offer the conditional pre-approval in about six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of 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, allow us to use our modern bank verification link to confirm your bank details online. If you decide to send us duplicates of your banking statement, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour, provided you submit your request within standard business hours and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statement, we’ll provide a decision in just an business day.
For the Larger Business Loans ($100K and up) we might be likely to provide you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Certain agreements have been approved in 24 hours.
The fastest way can be ensure you apply during normal business hours. Also, let us use the advanced bank verification system to instantly confirm your bank details online. If you opt to send us the copies of bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we will consider a number of elements for determining your well-being for your company and the level of the repayments your business can support. The total amount of your loan will depend on the specifics the company.
When you submit an application for a specific amount we look at a range of aspects to assess the health that is your business and the amount of repayments that your business can support. The total amount of the loan will be determined by the specifics the company.
Fees & repayments
How do you charge for a company loan?
When you make an application for business loans with us company credit, we’ll assess the risk assessment the business and provide you with a tailored offer, including the loan amount, the terms and the interest rates. It is a business loan is a loan that is priced upfront therefore you will know the exact amount due, which includes any interest rates, fees or charges.
What is the factor that determines the price I pay?
Business loan interest rates depend on several variables like the amount to be borrowed, what company assets the funds are used to purchase and the sector the business is in, how long the business is in operation, what percentage of the company has sufficient cash flow to cover the loan, and general well-being or financial standing of the business.
What are the cost?
There are no hidden costs with our business loans, and you’ll know precisely how much you be required to pay, and when, right from the very first day. There’s no compounding interest, and there are no additional charges (as as you make your payments on time).
We don’t charge an Application Fee. You can apply for a loan without any upfront costs or the obligation to take action.
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 loan amount.
Can I repay the loan earlier?
You can choose to repay the entire amount of the loan at any point in time.
If you do decide to do this please speak to our friendly company loans specialists. The experts will offer you with the details of your repayment along with an early payout estimate. This is calculated as the sum of the principal balance and accrued interest to the time of the early payout in addition to 1.5% of the remaining principal as well as any outstanding fees.
What are the repayment methods?
To make sure you do not miss payment dates and to align with your cash flow routine, we offer repayments that are either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is vital and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We use an advanced bank verification system link to immediately verify your bank account details online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a business owner makes use of an asset they own to secure a loan. The asset could be an individual property, such as the family home or it could be a company asset such as a vehicle or other piece of machinery.
The vast majority of banks, even the big banks, tend to secure loans against assets. If you have trouble paying back the loan, then the asset might be offered for sale by the lender. In essence, it is an opportunity to secure new funding taking advantage of the value of what you already own.
What do I require security for an business loan?
For loans that exceed $150K, it is not necessary to secure assets upfront to access the money however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan obligations (as specified in your loan contract) Asset security will never be needed. For loans that exceed $150,000, generally, there is an individual ensure and security that is in the form charges on assets.