FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Gawler South Small Business Loans
Tell me about the Gawler South Small Business Loans
Gawler South unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from a traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and the funds could be available in just 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. Our business loan is an upfront priced loan therefore you’ll know in advance the total amount payable including the interest, fees and charges. This is then divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company purpose including managing cash flows, company renovations, marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
About larger Gawler South Business Loans
What is the Larger Gawler South Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been operating for at least three years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly every business use, including company improvements, purchasing equipment or inventory, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. This is as a result of an charge over assets, which could also be registered in the PPSR or registering a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature rather than stipulating the security of a specific asset. The person signing the guarantee is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run 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 permits prioritisation over property that is personal to be granted in accordance with the date on which a security interest that is registered.
An affidavit is an official document filed to provide the legal claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for larger company loans that is greater than $250,000 we can offer an initial pre-approval that will help simplify the process. We may be able to get this done without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health questions. This is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be on different conditions.
The application process
Are I eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Just complete the online application in few minutes and an experienced business lending specialist will be in touch to guide you.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $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, as well as interim current financial year financials as well as Aged Payables and Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) We can usually offer a response in one hour if you submit your request at quality business times and you allow us to utilise the bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we are able to provide a decision in just an company day.
For Larger Business Loans ($100K up to $500,000) we may be in a position to provide you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some agreements have been approved in 24 hours.
The quickest method can be make sure you apply during standard business hours, and let us use the modern bank verification link to verify your bank account information online. If you send us duplicates of your banking statements it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour, provided you apply at normal business hours and let us use the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statement, we’ll offer the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be in a position to offer the conditional pre-approval within 6 hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The most effective method for you to apply is make sure you apply during standard business hours. You can also allow us to use our advanced bank verification system to verify your bank account information online. If you decide to upload copies of your bank accounts, it will take a little longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we look at a variety of elements to determine your well-being that is your business and the amount of the repayments your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances for your company.
If you apply for a particular amount, we consider a variety of factors to assess your well-being for your company as well as the amount of the repayments your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances for your company.
Fees & repayments
How much should you charge for a company loan?
When you apply for the company credit, we’ll assess the risk assessment of your company and provide you with a customised proposal that includes the amount of loan, the term and the interest rates. A company loan is an upfront cost loan so you will know the exact amount to be paid, including any charges or interest.
What is the basis for the rate I’m charged?
Business loan interest rates depend on several variables like the amount to be that is borrowed, what company assets the funds are used to purchase in addition to the industry that the company is operating in, how long the business has been running, how long the company has sufficient cash flow to cover the loan, and also the overall health or creditworthiness of the company.
What are the cost?
There are no hidden fees for our company loans, and you’ll know precisely what you need to pay, and when, starting from the first day. There’s not any compounding interest and no extra fees (as as you make your payments in time).
We do not charge an Application Fee. You are able to make an application for loans absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can repay the total amount of your loan early at any time.
If you do decide to do this please speak to our friendly business lending professionals. They’ll offer you with details on repayment and an early payment figure. The figure will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To ensure you do not miss payments and to work your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear the ways we gather information, use it, and exchange it, as well as safeguard your data, 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 personal, sensitive and financial data and our funders are ISO 27001 qualified 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 your bank account details online so we can offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the company owner borrows from an asset that they own to get the funding. The asset can be either 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 even the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan then the asset could be offered for sale by the lender. In essence, it is a way of securing new financing by taking advantage of the value of what you already own.
Are I require security to get a business loan?
Up to $150K in loans the requirement for asset security is not required before you can access the money However, we do need an individual guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract document) Asset security will never be required. For loans that exceed $150K, typically, you will need the option of a personal ensure and security is provided in the form of a charge over assets.