FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Greensborough Small Business Loans
Let me know what you think of the Greensborough Small Business Loans
Greensborough unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
It is possible to apply to get the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the money could be in your account within 24 hours. Traditional business loans have an annual rate of interest along with other charges and fees. This business loan is a loan that is priced upfront and you’ll know ahead of time the total amount to be paid, including the interest, fees and charges. This is then broken down into either weekly or daily payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business use, including the management of cash flow, 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 Larger Greensborough Business Loans
What is the Larger Greensborough Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A large business loan is a great option for almost every company reason, such as business renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It is usually as a result of an charge over assets, and could include registering this in the PPSR or filing a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally based rather than stating the security of a specific asset. The person signing the ensure is personally accountable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR permits priority over personal property to be granted according to the date a security interest was registered.
A caveat is a legal document lodged to offer an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan that exceeds $250K we can offer a preliminary pre-approval to help make the process. We might be able to get this done without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial well-being questions. It’s in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could be based on different conditions.
The application process
Are I eligible for funding?
You may apply for an company 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)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application within a couple minutes, and an experienced company expert in lending will be in touch to guide you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent, 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we typically provide a response in one hour – as long as you make your application at standard company hours and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements , we will be able to provide a decision in as little as the span of one business day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with conditional pre-approval within about six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved in 24 hours.
The most effective method can be make sure you apply during normal company hours. Also, allow us to use our advanced bank verification system to check your bank’s information online. If you decide to upload duplicates of your banking statements , it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within one hour – provided you apply in normal business timings and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statements, we are able to offer the decision within the span of one business day.
For Larger Business Loans ($100K or more) we might be likely to offer you with conditional pre-approval in around six hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some offers have been approved within less than 24 hours.
The fastest way can be ensure you apply during standard business hours and let us use the modern bank verification to check your bank’s information online. If you send us duplicates of your banking statements, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of aspects that determine your health that is your company as well as the amount of repayments that your company can support. The total amount of your loan will depend on the particular circumstances of your business.
When you make an application for a specific amount we will consider a number of aspects to determine your well-being that is your company and the extent of repayments your company is able to afford. The amount you receive from your loan will be contingent on the specifics the business.
Fees & repayments
What is the cost for a business loan?
If you decide to request our company credit, we’ll assess the risk assessment that you have for your company and provide you with a customised proposal that includes loan amount, term and interest rates. This business loan is an upfront priced loan therefore you will know the exact amount due, which includes any interest rates, fees or charges.
What determines the amount I am charged?
The interest rates on company loans rates differ based on various factors such as the amount that is of money borrowed, the business assets the funds are used to purchase in addition to the industry that the company operates in, how long the business has been operating and how long the company has enough cash flow to support the loan, as well as the general well-being as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges with our company loans. You’ll know precisely what it is that you be required to pay and at what time, from day one. There’s no compounding interest, and no extra fees (as long as you are able to make your payments in time).
We do not charge an application fee. You can apply for a loan no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan early?
You can decide to repay all of your loan at any point in time.
If you decide to take this route, please talk to one of our helpful company credit specialists. The professionals will provide you with the details of your repayment as well as an early payout amount. This is calculated as the sum of the principal balance and the accrued interest up to the time of early payment plus 1.5% of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
To make sure you do not miss due dates and also to be in line your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being upfront about how we collect information, use it, and exchange it, as well as safeguard your data, 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 use industry recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We make use of an advanced bank verification system link to instantly verify the bank account details online to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from an asset they own to get the loan. The asset could be an individual asset, such as the family home, or it could be a company asset such as a vehicle or piece of equipment.
The majority of lending institutions, not just the big banks, tend to secure loans against assets. If you have trouble paying back the loan, then the asset might be offered for sale by the lender. In essence it’s a way of securing additional financing using the value of what you already own.
Do I need security for an company loan?
For loans that exceed $150K, it is not necessary to secure assets prior to the loan’s access, however we do need a personal guarantee. If you adhere to your loan commitments (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans of over $150,000 typically, you will need a personal ensure and security is provided in the form of an asset charge.