FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Gledswood Hills Small Business Loans
Let me know more about Gledswood Hills Small Business Loans
Gledswood Hills unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from the traditional business loan?
It is possible to apply to get the Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and funds may be in your account in 24 hours. Traditional business loans reference an annual rate of interest together with additional fees and charges. Our business loan is a loan that is priced upfront so you will know in advance the total amount due, which includes any fees, interest or charges. Then, it is broken down into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost every company reason, such as cash flow management, company improvements, advertising to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About the Larger Gledswood Hills Business Loans
What is the Larger Gledswood Hills Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan can be used for almost every business purpose including business renovations, purchase of equipment or inventory for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This is by taking a charge on assets, which could also be registered on the PPSR or filing as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally in nature rather than specifying the security of a specific asset. The person who is signing the guarantee is personally liable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR gives preference over private property granted depending on the date that a security interest that is registered.
A caveat is a legal document that is filed to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan of $250,000 or more we may be able to provide an initial pre-approval that will help make the process. We may be able to do this without a credit check and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial health checks. This is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you are offered could be on different terms.
The application process
Are I eligible for funding?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a couple minutes, and a dedicated business credit specialist will be in touch to guide you through the process.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Information on the application including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within an hour – as long as you make your application in standard company time and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statement, we’ll provide an answer within one company day.
For the Larger Business Loan ($100K and up) we might be capable of provide you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be quicker based on the circumstances of each application. Certain deals have been approved in less than 24 hours.
The quickest method can be ensure you apply during normal business hours. You can also let us use the advance bank verification link to verify your bank account information online. If you opt to send us the copies of bank statement, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we can often offer an answer within one hour if you apply in normal business hours and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statement, we’ll offer a decision in just one business day.
For the Larger Business Loans ($100K or more) we might be likely to provide you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain deals have been approved in the space of 24 hours.
The most efficient method can be ensure you apply during normal business hours. You can also permit us to use the sophisticated bank verification link to confirm your bank details online. If you decide to send us documents from your account accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of aspects in order to assess what is the health for your business as well as the amount of repayments your company will be able to support. The total amount of your loan will depend on the particular circumstances that are unique to your business.
When you apply for a certain amount, we take into consideration a variety of factors to assess how much we can lend you such as health for your business as well as the amount of payments your business is able to afford. The total amount of the loan will be determined by the particulars the company.
Fees & repayments
How much should you charge for an business loan?
If you decide to request our business loans, we will assess the risk assessment that you have for your company and provide you with a tailored offer including the loan amount, the terms and interest rates. A business loan is an upfront cost loan and you’ll be aware of the total amount to be paid, including any charges or interest.
What determines the amount I pay?
Business loan interest rates differ based on various variables like the amount to be of money borrowed, the company assets the money will be used for, the industry the business is operating in, how long the business has been running as well as how long the company has sufficient cash flow to fund the loan, and the general health and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our business loans, and 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 additional fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to apply for a loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I repay the loan early?
You can choose to repay all of your loan early at any time.
If you choose to do this please talk to one of our helpful company loans experts. They’ll provide you with details on repayment as well as an early payout amount. The figure will be calculated as the sum of the principal balance and any accrued interest at the time of the early payout in addition to 1.5 percent of the remaining principal as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing the ways we gather, use, exchange and ensure the security of your information is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We use an advanced banking verification system to instantly verify your bank account information online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner utilises an asset they own to get the loan. The asset could be a personal asset like the family home, or a business asset such as a vehicle or piece or equipment.
The majority of banks, including the banks with the biggest size, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then the asset might be offered for sale by the lender. In essence it’s the process of securing additional financing taking advantage of the value of what you already own.
Do I require security to get an business loan?
For loans that exceed $150,000, the requirement for asset security is not required upfront to access the money However, we do require an individual guarantee. So long as you comply with the terms of your loan (as specified in your loan contract) and you are able to meet your obligations, asset security is not required. For loans over $150,000 generally, you can get personal guarantee and security in the form of an asset charge.