FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Gardenvale Small Business Loans
Tell me what you think of the Gardenvale Small Business Loans
Gardenvale unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
The application to this Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and the money could be on your account within 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. Our business loan is a cash-based loan and you’ll know in advance the total amount to be paid, including any interest, fees or charges. This is then broken down into either a daily or weekly payment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business use, including the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal use.
About larger Gardenvale Business Loans
What is the Larger Gardenvale 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 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the company needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan can be used to fund almost every business need, including company renovations, purchase of equipment or inventory or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This can be done by way of charge over assets, and may include registration with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is generally based rather than stipulating security over an asset. The person who signs the ensure is personally accountable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR permits preference over private property assigned according to the date the security interest was registered.
The caveat can be described as a formal form of document to provide the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 it’s possible to offer an initial pre-approval in order to ease the process. It is possible to apply for this without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial well-being questions. This is neither an offer nor a guarantee of funds. A conditional approval is subject a full credit assessment and any offer you may receive may be subject to different conditions.
Application process
Do I have the right to receive funds?
You may be eligible 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 prove at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in few minutes and an experienced company expert in lending will contact you to assist you.
To be eligible for up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually provide an answer within one hour – as long as you make your application in quality business hours and permit us to utilise the bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statements we can offer a decision within just 1 business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely to offer the conditional pre-approval within about six hours. After you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Some transactions have received approval in just 24 hours.
The most efficient method would be to ensure you apply during standard company hours. You can also allow us to use the modern bank verification link to verify your bank account information online. If you upload the copies of bank accounts, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we can often offer an answer within an hour, provided you submit your request at standard business time 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 banking statements, we are able to provide an answer in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we could be likely to provide you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be faster depending on the specifics of each application. Certain offers have been approved in 24 hours.
The quickest method would be to make sure you apply during normal business hours and allow us to use our advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank accounts, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a certain amount we consider a variety of aspects in order to assess the well-being of your business and the level of repayments that your company will be able to support. The total amount of the loan will be determined by the particular circumstances of your business.
When you apply for a specific amount we will consider a number of variables to determine your well-being for your company and the level of payments your company can support. The amount you receive from your loan will be determined by the specifics for your business.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to request the company loans, we will assess the risk profile of your company and offer you with a tailored proposal that includes loan amount, term and interest rates. This company loan is an upfront priced loan therefore you will be aware of the total amount payable including any charges or interest.
What is the basis for the rate I pay?
Interest rates for business loans rates vary due to factors including the amount of money borrowed, the business assets the funds are used to purchase and the sector the business is in, how long the company has been running for, whether the business has sufficient cash flow to fund the loan, and the overall well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much it is that you need to pay, and at what time, from day one. There’s no compounding interest and no additional fees (as as you make your payments on time).
We don’t charge an application fee. You are able to make an application for loans with without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of 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.
Can I repay the loan earlier?
You may choose to pay back the entire amount of the loan in full at any time.
If you choose to do this please contact our helpful company credit specialists. The professionals will offer you with the details of your repayment and an early payment figure. This is calculated as the total of the remaining principal amount and any accrued interest at the time of the early payout plus 1.5% of the principal balance and any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow cycle we provide payments that are either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about the ways we gather data, process, exchange and safeguard your data, is of huge importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We utilise a sophisticated bank verification system to immediately verify your bank account information online, allowing us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses the assets they have to secure a loan. The asset can be an asset belonging to the personal, like the family home or an company property like a truck as well as a piece of machine.
The vast majority of the lenders not just the big banks, tend to make loans secured by assets. If you are having difficulty paying back the loan, then your assets could be taken over by the lender. In essence it is the process of securing additional financing using the value of what you already have.
Should I need security for a company loan?
Up to $150K in loans it is not necessary to secure assets before you can access the money However, we require a personal guarantee. require an individual guarantee. In the event that you fulfill your loan commitments (as detailed in your loan contract document) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150K generally, you are able to get personal guarantee and security that is in the form an asset charge.