FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Greensborough Small Business Loans
Tell me how you can avail the Greensborough Small Business Loans
Greensborough unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from the traditional business loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and funds may be in your account in 24 hours. Traditional business loans reference an annual interest rate along with other charges and fees. We offer a company loan is a loan that is priced upfront which means you know ahead of time the total amount to be paid, including any fees, interest or charges. Then, it is broken down into either weekly or daily repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business purpose including cash flow management, company improvements, advertising for purchasing inventory or new equipment, for general working capital and so much more. The loan is not available for personal purposes.
About Larger Greensborough Business Loans
What is the Larger Greensborough Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large the company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan is a great option for almost all business purpose including business remodeling, buying new equipment or inventory for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. It’s in the form of a charge against assets and can include registering this through the PPSR or making a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is generally in nature rather than stipulating the security for a particular asset. The person who signs the ensure is personally liable in the event that the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR grants preference over private property granted depending on the date that a security interest has been registered.
A caveat is a legal document lodged to provide the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help simplify the process. We might be able to apply for this without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial health questions. This is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could be subject to different conditions.
The application process
Can I be eligible for funding?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for the 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 fast and simple. Just complete the online application within a few minutes and an experienced business loan specialist will be in touch to guide you through the process.
To apply for up to $100,000 you’ll require proof of identity (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent and 12 months of bank records, IRD statements, last 2 years finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often offer an answer within an hour if you submit your request during standard business timings and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statement, we’ll offer a decision within just one company day.
For the Larger Business Loan ($100K or more) we may be able to offer you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some transactions have received approval within just 24 hours.
The fastest way can be make sure you apply during standard business hours. Also, allow us to use our modern bank verification link to verify your bank account information online. If you upload documents from your account statements , it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) We can usually provide an answer within an hour – as long as you submit your request during normal business hours and allow us to use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statements, we are able to provide a decision in as little as 1 business day.
For the Larger Business Loans ($100K and up) we might be capable of offer you with a conditional pre-approval within six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain agreements have been approved in the space of 24 hours.
The fastest method can be make sure you apply during standard business hours. You can also permit us to use the modern bank verification to instantly confirm your bank details online. If you upload documents from your account statement, it will take a little longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we will consider a number of aspects in order to assess what is the health for your company and the amount of repayments your company will be able to support. The amount you receive from the loan will be determined by the specific circumstances for your business.
When you make an application for a particular amount, we will consider a number of aspects to assess your well-being that is your company and the extent of repayments your business will be able to support. The total amount of the loan will be determined by the specific circumstances the business.
Fees & repayments
How do you charge for an business loan?
If you decide to apply for one of our company loans, we will assess the risk assessment for your company and offer you with a customised offer that includes the loan amount, the terms and the interest rates. It is a business loan is an upfront cost loan so you will be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I’m charged?
The interest rates on company loans rates depend on several factors such as the amount that is that is borrowed, what business assets the funds are used to purchase, the industry the business is in, how long the company has been running for, how long the business has sufficient cash flow to support the loan, and the overall well-being or creditworthiness of the business.
What are the charges?
There are no hidden fees with our business loans. You’ll be aware of the amount it is that you need to pay, and at what time, from the very first day. There’s no compounding interest and no extra fees (as long as you make your payments in time).
We don’t charge an application fee. You are able to make an application for loans with no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan earlier?
You can repay the entire amount of the loan at any point in time.
If you decide to do this please call our helpful company credit professionals. They will offer you with the details of your repayment along with an early payout estimate. This will be calculated as the sum of the principal balance plus any accrued interest as of the time of the early payout plus 1.5 percent of the principal remaining and any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work with your cash flow standard, we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear how we collect information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and an integral element 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 personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We utilise a sophisticated bank verification system link to instantly verify your bank account information online. This allows us to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the business owner uses the assets they have to secure a loan. The asset could be an individual property, such as the family home or an business asset like a truck or other piece of machinery.
The majority of the lenders not just the banks with the biggest size, prefer to make loans secured by assets. If you are having difficulty paying back the loan, the asset could be transferred to the lender. In essence it’s means of securing new funding making use of the value of what you already have.
What do I require security for an business loan?
Up to $150,000 in loans the requirement for asset security is not required prior to the loan’s access but we require a personal guarantee. need an individual guarantee. As long as you follow the loan terms (as specified in your loan contract document) the security of assets will never be required. For loans of over $150K generally, you are able to get personal ensure and security that is in the form a charge over assets.