FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Guys Hill Small Business Loans
Tell me what you think of the Guys Hill Small Business Loans
Guys Hill unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from the traditional business loan?
It is possible to apply for your Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and funds may be in your account within 24 hours. Traditional company loans are based on an interest rate per annum along with other charges and fees. Our business loan is a pre-paid loan and you’ll know ahead of time the total amount payable including any fees, interest or charges. This is then broken down into either weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any business use, including cash flow management, business renovations, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal purposes.
About the Larger Guys Hill Business Loans
What is the Larger Guys Hill Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to be in operation for at least 3 years, and have an annual income of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A larger company loan can be used for nearly every company purpose including business improvements, purchasing equipment or inventory or as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It is usually in the form of a charge against assets, and could include registering this in the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature, rather than specifying security over a particular asset. The person who is signing the ensure is personally liable in the event that the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
The caveat can be described as a formal document filed to offer the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan that exceeds $250,000 we may be able to provide a preliminary pre-approval to help ease the process. We may be able to apply for this without a credit verification and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial well-being questions. This is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer you might receive could be subject to different conditions.
Application process
Do I have the right to receive funds?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just complete the online application within a few minutes and an experienced company expert in lending will contact you to help you.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s License) 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 need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent, 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we can often offer an answer in just one hour – as long as you apply in standard company hours and you allow us to utilise the bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements , we will be able to provide the decision within one company day.
For Larger Business Loans ($100K or more) we could be in a position to provide the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The most efficient method can be make sure you apply during normal business hours. Also, permit us to use the advanced bank verification system to instantly verify your bank account information online. If you decide to upload duplicates of your banking accounts, it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour, provided you make your application at standard business time and allow us to use the bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statements, we are able to offer a decision within one business day.
For the Larger Business Loans ($100K or more) we might be in a position to provide you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Some deals have been approved in just 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours, and allow us to use our advance bank verification link to instantly confirm your bank details online. If you choose to upload documents from your account statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a specific amount we will consider a number of variables to determine how much we can lend you health that is your company as well as the amount of repayments that your business will be able to support. The total amount of your loan will depend on the specific circumstances of your business.
When you apply for a certain amount, we consider a variety of factors to assess your well-being that is your business and the amount of the repayments your company is able to afford. The total amount of the loan will be determined by the specifics the business.
Fees & repayments
How much should you charge for a business loan?
When you apply for our business loan, we’ll assess the risk assessment of your company and offer an individualised offer that includes the amount of the loan, the duration and interest rates. The company loan is an upfront cost loan so you will be aware of the total amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on several factors like the amount of money borrowed, what business assets the funds will be used for in addition to the industry that the business operates in, how long the company is in operation as well as in the event that the business has sufficient cash flow to fund the loan, and also the overall health or creditworthiness of the company.
What are the charges?
There are no hidden fees for our company loans. You’ll know exactly how much you be required to pay and when, right from day one. There’s no compounding and no extra fees (as long as you make your payments punctually).
We do not charge an Application Fee. You can request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan in advance?
You can decide to repay all of your loan at any point in time.
If you choose to do this please contact our helpful business credit experts. They’ll offer you with the details of your repayment and an early payment figure. The figure will be calculated as the total of the remaining principal amount and accrued interest to the date of early payout in addition to 1.5 percent of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss due dates and also to be in line with your cash flow routine, we provide repayments either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and being clear about the ways we gather data, process, exchange and ensure the security of your information is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to security for our clients and security. We employ a highly sophisticated bank verification system to instantly confirm your bank account information online so we can offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner borrows from an asset they own to obtain a loan. The asset can be an asset belonging to the personal, like the family home or it could be a company property like a truck or other piece of machinery.
The majority of lenders, even the big banks, tend to secure loans against assets. If you’re having trouble paying back the loan, then your assets could be transferred to the lender. In essence it’s the process of securing additional financing making use of the value of what you already own.
Are I need security for a company loan?
For loans that exceed $150,000, no asset security is required prior to the loan’s access However, we do require the personal guarantee. As long as you follow your loan commitments (as stipulated in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150,000, typically, you will need personal ensure and security that is in the form an asset charge.