FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Glen Iris Small Business Loans
Tell me what you think of the Glen Iris Small Business Loans
Glen Iris unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from a traditional business loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and the funds could be in your account within 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. We offer a company loan is a pre-paid loan therefore you’ll know ahead of time the total amount payable including any fees, interest or charges. Then, it is divided into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company need, such as control of cash flow company remodeling, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
Concerning Larger Glen Iris Business Loans
What is the Larger Glen Iris Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that 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 that is this large, your business needs to be operating for at least three years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used to fund almost any business use, including company improvements, purchasing equipment or inventory for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. It’s by way of charge on assets, and may include registration on the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally based rather than defining the security for a particular asset. The person who signs the ensure is personally liable in the event that the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR allows the priority of personal property granted depending on the date that a registration of a security interest.
The caveat can be described as a formal form of document to offer notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan of $250,000 or more we may be able to provide an initial pre-approval that will help simplify the process. We might be able to do this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial health questions. It’s neither an offer nor a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer that you receive could have different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for a 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)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Just complete the online application in few minutes and a dedicated company credit specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent and 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we usually offer a response in one hour – as long as you submit your request within quality business timings and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll offer a decision within just 1 company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be capable of provide the conditional pre-approval within about 6 hours. After you’ve signed your 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. Some offers have been approved within less than 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard company hours. Also, permit us to use the modern bank verification link to instantly check your bank’s information online. If you opt to send us copies of your bank statement, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we typically offer a response in one hour if you make your application at standard business hours and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements, we will be able to provide a decision within one business day.
For Larger Business Loans ($100K to $500K) we could be able to provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Some agreements have been approved within 24 hours.
The quickest method is to ensure you apply during standard business hours. Also, let us use the advance bank verification link to instantly verify your bank information online. If you decide to send us documents from your account accounts, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of factors to determine how much we can lend you well-being that is your company and the amount of payments your company can support. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
When you make an application for a certain amount, we look at a range of variables to assess how much we can lend you such as well-being of your company and the level of repayments that your company is able to afford. The total amount of the loan will be determined by the specific circumstances of your business.
Fees & repayments
How much should you charge for a company loan?
If you decide to make an application for the company loan, we will assess the risk assessment the company and provide you with a customised offer including the amount of loan, the term and the interest rates. The business loan is an upfront-priced loan which means you know the exact amount payable including any interest rates, fees or charges.
What determines the rate that I pay?
Interest rates for business loans rates vary due to variables like the amount to be that is borrowed, what business assets the money are used to purchase as well as the field the company operates in, the long the business has been operating for, in the event that the company has enough cash flow to pay for the loan, as well as the general health or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll know precisely what you need to pay and when, from the very first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You can apply for a loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay out the loan earlier?
You can choose to repay all of your loan early at any time.
If you decide to pursue this option, please contact our helpful business loan professionals. They’ll offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payout plus 1.5% of the principal remaining plus any outstanding fees.
How do repayments work?
To make sure you do not miss payment dates and to align with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and knowing how we collect data, process, exchange and protect your information, is of huge importance and a vital part 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 personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to customer security and security. We utilise a sophisticated bank verification system to instantly verify your bank account details online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the business owner makes use of assets they own to make the funds for a loan. The asset can be a personal asset like the family home, or a company asset such as a truck or piece or equipment.
The vast majority of banks, even the banks with the biggest size, prefer to make loans secured by assets. If you’re having trouble paying back the loan, then your assets could be sold by the lender. In essence it’s means of securing new financing by taking advantage of the value of what you already have.
Do I need security to get a company loan?
Up to $150,000 in loans it is not necessary to secure assets in advance to gain access to the funds, however we do require a personal guarantee. In the event that you fulfill the terms of your loan (as stated in your loan contract) the security of assets is not required. For loans of over $150K typically, you will need personal ensure and security in the form of the charge of assets.