FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Girraween Small Business Loans
Let me know how you are able to avail the Girraween Small Business Loans
Girraween unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from a traditional company loan?
It is possible to apply to get this Small Business Loan in under 10 minutes over the phone, receive a same day response and have the funds available in just 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. This business loan is a loan that is priced upfront which means you know in advance the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business use, including the management of cash flow, business renovations, marketing, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About Larger Girraween Business Loans
What is the Larger Girraween Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to have been in operation for at least 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly any company reason, such as business remodeling, buying inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. It is usually in the form of a charge on assets, which could also include registration with the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally in nature rather than stipulating the security for a particular asset. The person who signs the ensure is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR permits priority over personal property to be granted according to the date a security interest has been registered.
A caveat is a legal document lodged to provide the legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger company loans that is greater than $250,000 we can offer an initial pre-approval that will help make the process. We might be able to get this done without a credit check and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering some financial health checks. It’s in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer that you may receive may be on different conditions.
The application process
Do I have the right to receive funds?
You can apply 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)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form within a few minutes and an experienced business loan specialist will be in touch to help you.
To apply for up $100,000 you’ll require ID details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank records, IRD statements, last 2 years finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour if you submit your request in standard business timings and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements , we are able to offer an answer within just one company day.
If you are applying for a Larger Business Loan ($100K or more) we may be able to offer you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be quicker based upon the circumstances for each application. Certain deals have been approved in 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, let us use the advance bank verification link to verify your bank information online. If you send us copies of your bank statements it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour – as long as you apply at normal business time and let us use the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements, we are able to offer the decision in just the span of one business day.
For Larger Business Loans ($100K and up) we could be likely to offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Certain transactions have received approval within just 24 hours.
The fastest method can be ensure you apply during standard business hours. You can also let us use the advance bank verification link to confirm your bank details online. If you choose to send us duplicates of your banking statements, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a specific amount we will consider a number of variables in order to assess what is the well-being of the company and the amount of payments your business can afford. The total amount of the loan will be determined by the specifics that are unique to your business.
If you apply for a certain amount, we will consider a number of factors to determine your well-being of your business and the level of payments your company will be able to support. The total amount of your loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you apply for one of our business credit, we’ll assess the risk profile the business and offer you with a tailored offer, including the amount of the loan, the duration and the interest rates. It is a company loan is a loan that is priced upfront therefore you will be aware of the total amount payable including any interest rates, fees or charges.
What determines the amount I will be charged?
Interest rates for business loans rates depend on several factors such as the amount that is of money borrowed, the business assets the money are used to purchase and the sector the company operates in, how long the business has been operating and how long the business has enough cash flow to support the loan, and the general well-being or financial standing of the company.
What are the fees?
There are no hidden fees for our business loans. You’ll know precisely how much you be required to pay and when, right from the day you sign up. There’s no compounding and no extra fees (as as you make your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with 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 the loan.
Can I pay off the loan in advance?
You may choose to pay back all of your loan early at any time.
If you decide to do this please contact our helpful company loan experts. They will provide you with details on repayment as well as an early payout amount. This is calculated as the total of the remaining principal amount and any accrued interest at the time of early payout in addition to 1.5% of the remaining principal and any fees that remain unpaid.
How do repayments work?
To make sure that you don’t miss repayments and to fit in with your cash flow standard, we offer repayments that are either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect the information we collect, use, share and protect your information, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We make use of an advanced banking verification system to immediately verify your bank account details online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner makes use of an asset they own to make a loan. The asset can be either an individual asset, such as the family home, or an company asset such as a truck or other piece of machinery.
The majority of lenders, not just the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan, then your assets could be offered for sale by the lender. In essence, it is a way of securing new financing by making use of the value of what you already own.
Should I need security for a business loan?
Up to $150K in loans it is not necessary to secure assets upfront to access the money However, we do require the personal guarantee. So long as you comply with the terms of your loan (as detailed in your loan contract document), asset security will never be needed. For loans over $150K generally, there is an individual ensure and security is provided in the form of charges on assets.