FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Gordon Small Business Loans
Let me know how you can avail the Gordon Small Business Loans
Gordon unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
Apply for your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and the money could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. This business loan is a pre-paid loan and you’ll be aware in advance of the total amount to be paid, including the interest, fees and charges. Then, it is divided into a daily or weekly installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business need, such as the management of cash flow, business renovations, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
About the Larger Gordon Business Loans
What is the Larger Gordon Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been in operation for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own 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 large business loan can be used for nearly all business need, including company improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. This can be done by way of charge over assets, which could also be registered on the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to repay a loan which is general in nature rather than specifying 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 re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR allows preference over private property assigned in accordance with the date on which a security interest was registered.
An affidavit is an official form of document to provide an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan that exceeds $250K, we may offer a preliminary pre-approval to help smooth out the process. We might be able to apply for this without a credit check and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial well-being questions. It is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be based on different conditions.
Application process
Are I eligible for funding?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (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 fast and easy. Complete the online form in few minutes and an experienced company expert in lending will be in touch to help you.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent twelve months of bank statements, IRD statements and the last two years’ finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we usually provide an answer in just one hour, provided you make your application during quality business timings and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements we can offer the decision within just 1 company day.
For the Larger Business Loan ($100K to $500K) we could be likely to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain offers have been approved within less than 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours, and permit us to use the modern bank verification link to instantly confirm your bank details online. If you opt to upload copies of your bank accounts, it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour – as long as you make your application during normal business time and permit us to use the bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements, we’ll be able to provide a decision within one business day.
For the Larger Business Loans ($100K up to $500,000) we might be capable of provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Certain offers have been approved in the space of 24 hours.
The most effective method would be to make sure you apply during standard business hours, and allow us to use our sophisticated bank verification link to instantly verify your bank information online. If you decide to send us copies of your bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a certain amount we consider a variety of aspects in order to assess your health of the company and the amount of repayments that 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 apply for a set amount, we take into consideration a variety of aspects to determine your well-being that is your business and the extent of repayments your business is able to afford. The total amount of your loan will be determined by the particulars for your business.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to make an application for business loans with us business credit, we’ll assess the risk profile that you have for your business and provide you with a tailored offer that includes the amount of loan, the term and interest rates. This business loan is a loan that is priced upfront and you’ll be aware of the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on several factors including the amount borrowed, what business assets the money will be used for as well as the field the business operates in, how long the company has been in operation as well as how long the business has sufficient cash flow to pay for the loan, and also the overall well-being or financial standing of the business.
What are the cost?
There are no hidden costs with our business loans, and you’ll know precisely what you need to pay and when, from the day you sign up. There’s not any compounding interest and no extra fees (as long as you make your payments on time).
We don’t charge an application fee. You can request a credit loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan early?
You can decide to repay all of your loan early at any time.
If you decide to take this route, please speak to our friendly business lending experts. They will offer you with the details of your repayment as well as an early payout amount. The figure will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of early payout, plus 1.5 percent of the principal remaining as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work with your cash flow routine, we offer repayments either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their privacy. We employ a highly sophisticated bank verification system to immediately verify your bank account details online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner borrows from the assets they have to make the funds for a loan. The asset can be a personal asset like the family home or a business asset such as a truck or piece or equipment.
The vast majority of banks, not just the major banks, prefer to guarantee loans against an asset. If you have trouble paying back the loan then the asset might be sold by the lender. In essence, it’s an opportunity to secure new funding using the value of what you already own.
Should I need security for an business loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money However, we do need an individual guarantee. So long as you comply with your loan obligations (as stated in the loan contract) Asset security is not required. For loans over $150K generally there is a personal guarantee and security that is in the form an asset charge.