FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Gold Coast Small Business Loans
Let me know more about Gold Coast Small Business Loans
Gold Coast unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from an traditional business loan?
You can apply for the Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and funds may be available in just 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. The company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount payable including the interest, fees and charges. Then, it is divided into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company purpose including managing cash flows, business remodeling, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available to fund personal expenses.
About larger Gold Coast Business Loans
What is the Larger Gold Coast Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be trading for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving 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 almost any company need, including business renovations, to purchase new equipment or inventory or as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. This is in the form of a charge on assets, and may include registering this in the PPSR or making as a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally based rather than specifying security over a particular asset. The person signing the ensure is personally responsible if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR gives priority over personal property to be assigned according to the date a security interest has been registered.
The caveat can be described as a formal document that is filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan of $250K or more we can offer a preliminary pre-approval to help smooth out 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 made based on an initial evaluation that involves you answering a few financial well-being questions. It’s neither an offer nor a guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer you might receive could be subject to different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a 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’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a few minutes and a dedicated company lending specialist will call you to guide you through the process.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer in just one hour if you submit your request at quality business times and let us utilise the bank verification system link to instantly verify your bank’s information online. If you decide to send us copies of your bank statement, we’ll provide the decision within just one business day.
For Larger Business Loans ($100K up to $500,000) we may be in a position to offer you with a conditional pre-approval in around six hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain agreements have been approved within just 24 hours.
The fastest way can be ensure you apply during normal company hours. Also, allow us to use our modern bank verification to verify your bank account information online. If you opt to send us duplicates of your banking statements , it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour – provided you submit your request within normal business hours and permit us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we are able to offer the decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we might be able to provide the conditional pre-approval in about 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some agreements have been approved in 24 hours.
The most effective method is to ensure you apply during standard business hours. You can also permit us to use the sophisticated bank verification link to instantly confirm your bank details online. If you choose to send us documents from your account accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a particular amount, we look at a variety of factors to determine what is the health that is your business as well as the amount of payments your company can afford. The total amount of your loan will depend on the specifics for your company.
When you apply for a specific amount we consider a variety of aspects to assess how much we can lend you such as health of the business as well as the amount of payments your company will be able to support. The total amount of your loan will be determined by the particular circumstances the company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to make an application for our business financing, we will assess the risk assessment of your company and offer you with a customised offer, including loan amount, term and interest rates. This business loan is an upfront-priced loan therefore you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I am charged?
The interest rates on company loans rates differ based on various factors such as the amount that is borrowed, what business assets the money will be used for, the industry the company is operating in, how long the company has been operating as well as whether the company has enough cash flow to support the loan, as well as the general well-being and creditworthiness of the company.
What are the costs?
There are no hidden costs for our business loans. You’ll know precisely how much it is that you be required to pay, and when, right from day one. 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 are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I repay the loan early?
You can repay the entire amount of your loan in full at any time.
If you choose to do this please speak to our friendly company credit specialists. They will provide you with details for repayment and an early payout figure. It will be calculated using the total of the remaining principal amount plus any accrued interest as of the time of early payment, plus 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
To help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be secure?
Protecting your information, and being transparent about the ways we gather the information we collect, use, share and safeguard your data, is vital and a vital part 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 and financial data and our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We utilise a sophisticated banking verification system to instantly confirm your bank account information online, allowing us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an company owner makes use of assets they own to get the funding. The asset can be either an individual property, such as the family home or a company asset like a truck or piece or equipment.
The majority of lenders, even the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, the asset might be transferred to the lender. In essence it’s the process of securing new financing by using the value of what you already have.
Are I need security to get an company loan?
For loans that exceed $150K, there is no requirement for asset security in advance to gain access to the funds but we do need an individual guarantee. If you adhere to your loan obligations (as stipulated in your loan contract), asset security will never be needed. If you take out loans in excess of $150,000 generally, you can get an individual guarantee and security is provided in the form of the charge of assets.