FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Glen Innes Small Business Loans
Let me know how you are able to avail the Glen Innes Small Business Loans
Glen Innes unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
The application to the Small Business Loan in under 10 minutes over the phone, receive a same day response and funds may be in your account in 24 hours. Traditional company loans reference an interest rate per annum as well as other fees and charges. We offer a company loan is an upfront priced loan therefore you’ll know ahead of time the amount you will have to pay, including any fees, interest or charges. Then, it is divided into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business use, including control of cash flow company remodeling, marketing to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal reasons.
About the Larger Glen Innes Business Loans
What is the Larger Glen Innes Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to be in operation for at least 3 years and generate an annual revenue of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (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 can be used to fund almost all business reason, such as business renovations, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. It is usually by taking a charge against assets, and could include the registration of this with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is generally in nature rather than stating security over a particular asset. The person signing the guarantee is personally liable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR grants the priority of personal property assigned according to the date a security interest has been registered.
Caveats are legal form of document to provide the legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250K we can offer an initial pre-approval to smooth out the process. We could be able to do this without a credit check, and within six hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial well-being questions. This is neither an offer nor a guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you may receive may be based on different terms.
Application process
Can I be eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form in few minutes and an experienced company credit specialist will be in touch to assist you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we can often offer an answer within one hour – as long as you make your application in standard company timings and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll offer an answer in as little as one business day.
For the Larger Business Loan ($100K or more) we could be capable of provide you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be quicker based on the specifics of each application. Some deals have been approved within 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard business hours and allow us to use the advance bank verification link to instantly check your bank’s information online. If you upload documents from your account accounts, it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we can often provide a response in one hour – provided you apply within normal business timings and allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statements we can provide a decision within one business day.
For Larger Business Loans ($100K or more) we could be in a position to provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved in just 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. You can also allow us to use the modern bank verification link to verify your bank account information online. If you decide to upload duplicates of your banking statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of elements that determine the well-being for your company and the amount of repayments that your company can support. The amount you receive from your loan will depend on the particular circumstances that are unique to your business.
If you apply for a certain amount, we consider a variety of factors to determine how much we can lend you such as health that is your company as well as the amount of payments your company is able to afford. The amount you receive from your loan will be contingent on the specifics for your company.
Fees & repayments
How much should you charge for an company loan?
When you apply for our company loan, we will assess the risk assessment for your business and provide an individualised offer including the amount of loan, the term and the interest rates. A business loan is an upfront cost loan so you will know the exact amount payable including any charges or interest.
What is the basis for the rate I’m charged?
Interest rates for business loans rates depend on several factors such as the amount that is borrowed, the business assets the funds are used to purchase as well as the field the company operates in, how long the business has been in operation, how long the business has enough cash flow to fund the loan, and overall health as well as creditworthiness business.
What are the fees?
There are no hidden fees with our business loans. You’ll know precisely what you need to pay and at what time, from the very first day. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments in time).
We do not charge an Application Fee. You can request a credit loan with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated 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 percent of the amount of loan.
Can I pay off the loan in advance?
You can repay the entire amount of your loan at any point in time.
If you do decide to take this route, please call our helpful business lending professionals. The specialists will provide you with repayment details and an early payment figure. This will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of the early payout and 1.5 percent of the principal amount remaining plus any outstanding fees.
How do repayments work?
To make sure that you don’t miss due dates and also to be in line your cash flow schedule, we provide repayments either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about the ways we gather the information we collect, use, share and secure your information, is of paramount 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 information and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account information online. This allows us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner makes use of an asset they own to obtain the funds for a loan. The asset could be a personal asset like the family home or a company asset like a truck or piece or equipment.
The majority of lenders, including the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan then the asset could be sold by the lender. In essence it’s the process of securing new financing using the worth of the asset you already have.
Are I require security to get a business loan?
For loans that exceed $150K, there is no requirement for asset security upfront to access the money, however we do require an individual guarantee. If you adhere to your loan commitments (as stated in your loan contract document), asset security is not required. If you take out loans in excess of $150K generally, you are able to get personal ensure and security is provided in the form of charges on assets.