FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Gold Coast Small Business Loans
Let me know about the Gold Coast Small Business Loans
Gold Coast unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from the traditional business loan?
The application to your Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and have the funds on your account within 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. Our company loan is a loan that is priced upfront therefore 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 a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost every business reason, such as managing cash flows, company renovations, marketing to purchase inventory, new equipment, as general working capital and so much more. The loan is not available for personal reasons.
About larger Gold Coast Business Loans
What is the Larger Gold Coast Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly, depending on your situation.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been trading for at least 3 years, and have an annual income of $700K. It is necessary to be 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 to demonstrate at minimum 12 months of business.
What can I use the funding for?
A larger business loan is a great option for almost every business use, including business renovations, to purchase equipment or inventory or as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. It’s as a result of an charge on assets, which could also include registration through the PPSR or filing as a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally based rather than stipulating the security for a particular asset. The person who is signing the ensure is personally liable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR allows the priority of personal property granted depending on the date that a security interest was registered.
Caveats are legal document that is filed to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan of more than $250K we can offer an initial pre-approval that will help make the process. It is possible to apply for this without credit checks and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial well-being questions. It’s in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer that you might receive could be on different conditions.
Application process
Do I have the right to receive funds?
You are eligible to 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 a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a few minutes and an experienced business credit specialist will call you to help you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour, provided you submit your request within standard business hours and let us utilise the bank verification system to immediately verify your bank account information online. If you opt to upload copies of your bank statement, we’ll offer a decision in just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we might be likely to offer the conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some offers have been approved in the space of 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, allow us to use our advanced bank verification system to check your bank’s information online. If you decide to send us copies of your bank accounts, it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K or more) we can often provide a response in one hour – provided you make your application in normal business time and let us use the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements we can offer a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be in a position to offer you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this can be faster depending on the circumstances of each application. Some agreements have been approved within less than 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours, and permit us to use the sophisticated bank verification link to verify your bank account information online. If you send us the copies of bank statements it can take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a certain amount we look at a variety of elements that determine what is the well-being for your business and the amount of repayments your company is able to afford. The amount you receive from your loan will depend on the particular circumstances the company.
When you submit an application for a set amount, we consider a variety of variables to assess your health that is your business and the extent of repayments your business is able to afford. The amount you receive from the loan will be determined by the specifics for your business.
Fees & repayments
How much do you charge for a business loan?
When you make an application for the company loans, we’ll assess the risk assessment of your company and offer you with a customised offer, including the amount of loan, the term and interest rates. The company loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I pay?
Business loan interest rates differ based on various factors including the amount borrowed, what company assets the money will be used for as well as the field the company operates in, how long the company has been in operation, what percentage of the business has sufficient cash flow to support the loan, as well as the general well-being or creditworthiness of the business.
What are the charges?
There are no hidden costs with our business loans. You’ll know exactly how much it is that you need to pay and when, starting from the very first day. There’s no compounding interest, and no extra fees (as long as you make your payments in time).
We don’t charge an application fee. You can get a cash loan without any upfront costs or commitment to apply.
The Origination Fee is the cost 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 percentage of the amount of loan.
Can I repay the loan in advance?
You can choose to repay the entire amount of the loan at any point in time.
If you are deciding to take this route, please contact our helpful company loan professionals. They will provide you with details for repayment along with an early payout estimate. This will be calculated as the total of the remaining principal amount and accrued interest to the time of early payout plus 1.5 percent of the remaining principal as well as any outstanding fees.
How do repayments work?
To make sure you do not miss due dates and also to be in line with your cash flow standard, we offer repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about the ways we gather information, use it, and exchange it, as well as protect your information, is vital and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We make use of an advanced bank verification system to instantly verify the bank account details online so we can provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where the company owner uses assets they own to make the loan. The asset can be an individual asset, such as the family home or it could be a business asset such as a truck or piece or equipment.
The vast majority of the lenders not just the largest banks, are inclined to make loans secured by an asset. If you’re having trouble paying back the loan, your asset may be sold by the lender. In essence, it is means of securing new financing by using the value of what you already have.
Are I need security to secure an business loan?
For loans of up to $150,000, there is no requirement for asset security before you are able to access the money however, we do require an individual guarantee. If you adhere to the terms of your loan (as stated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150,000 typically, you will need the option of a personal guarantee and security is provided in the form of charges on assets.