FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Gold Coast Small Business Loans
Tell me how you can avail the Gold Coast Small Business Loans
Gold Coast unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
You can apply to your Small Business Loan in under 10 minutes by phone. You will receive an instant response and have the funds in your account in 24 hours. Traditional business loans reference an annual rate of interest along with other charges and fees. The business loan is a pre-paid loan and you’ll be aware in advance of the total amount due, which includes any interest, fees or charges. Then, it is broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company purpose including control of cash flow business improvements, advertising to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal reasons.
About the 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 expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been operating for at least three years, and have an annual income of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be used for?
A larger company loan can be used for almost every company use, including company improvements, purchasing inventory or new equipment or as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This is in the form of a charge against assets, and may include registering this in the PPSR or filing a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is general in nature rather than defining security over an asset. The person who signs the ensure is personally responsible if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR permits priority over personal property to be granted depending on the date that a registration of a security interest.
An affidavit is an official document that is filed to provide an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans of more than $250,000 we may be able to provide an initial pre-approval in order to make the process. We could be able to do this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial well-being checks. This is neither an offer nor a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you receive could be on different conditions.
The application process
Do I have the right to receive funds?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a few minutes and a dedicated company expert in lending will be in touch to help you.
To apply for up $100,000, you’ll need identification details (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we usually offer an answer within one hour, provided you make your application at standard company hours and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you opt to send us copies of your bank statements , we’ll be able to offer the decision in just one company day.
For Larger Business Loans ($100K and up) we may be capable of offer the conditional pre-approval within six hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain offers have been approved in 24 hours.
The most effective method can be ensure you apply during normal business hours and allow us to use our advance bank verification to check your bank’s information online. If you send us the copies of bank statements , it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within an hour – as long as you submit your request within normal business hours and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statement, we’ll offer the decision within an business day.
For the Larger Business Loans ($100K up to $500,000) we might be likely to provide the conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Some agreements have been approved in less than 24 hours.
The most effective method is to ensure you apply during standard business hours, and permit us to use the modern bank verification link to confirm your bank details online. If you upload documents from your account statement, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a specific amount we consider a variety of aspects to determine what is the well-being that is your business and the extent of repayments your business will be able to support. The total amount of your loan will be contingent on the specifics the business.
If you apply for a certain amount, we consider a variety of variables to assess the health of the business as well as the amount of repayments that your company can support. The total amount of the loan will be determined by the particulars that are unique to your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for the company financing, we’ll assess the risk profile the company and offer you with a tailored offer including loan amount, term and interest rates. The company loan is an upfront-priced loan 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 pay?
The interest rates on business loans rates depend on several factors like the amount of money borrowed, what company assets the money are used to purchase, the industry the company is operating in, how long the company has been running and how long the business has sufficient cash flow to support the loan, and general well-being and creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our company loans, and you’ll be aware of the amount you’ll need to pay, and at what time, from the first day. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can make an application for loans absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan early?
You can choose to repay the entire amount of the loan in full at any time.
If you decide to take this route, please speak to our friendly business credit experts. The experts will provide you with repayment details and an early payment figure. The figure will be calculated as the sum of the principal remaining and the accrued interest up to the time of the early payout and 1.5% of the principal balance and any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align with your cash flow standard, we provide payments that are either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect data, process, exchange and ensure the security of your information is of huge importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We employ a highly sophisticated bank verification system link to immediately confirm your bank account information online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner makes use of an asset that they own to secure the funds for a loan. The asset can be either a personal asset like the family home, or an company asset such as a vehicle or piece of equipment.
The vast majority of the lenders including the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan, your asset may be transferred to the lender. In essence it’s a way of securing additional financing using the value of what you already have.
Do I need security to secure an business loan?
For loans up to $150K no asset security is required in advance to gain access to the funds However, we require a personal guarantee. require an individual guarantee. As long as you follow the loan terms (as specified in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans that exceed $150,000, generally, there is personal guarantee and security in the form of charges on assets.