FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Greenslopes Small Business Loans
Let me know what you think of the Greenslopes Small Business Loans
Greenslopes unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from an ordinary company loan?
Apply to get the Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and the funds could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum along with other charges and fees. The company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into a daily or weekly payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company purpose including control of cash flow company improvements, advertising to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal use.
About Larger Greenslopes Business Loans
What is the Larger Greenslopes Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been trading for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used for almost any company purpose including business renovations, purchase of equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. It is usually by way of charge over assets, which could also include registration in the PPSR or filing a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally based rather than defining the security of a specific asset. The person signing the ensure is personally responsible if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including goods or assets). The PPSR allows preference over private property granted according to the date the registration of a security interest.
A caveat is a legal document that is filed to provide the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250K it is possible to offer an initial pre-approval to make the process. We could be able to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes you answering a few financial well-being questions. This is not an offer or guarantee of funds. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you might receive could be on different conditions.
Application process
Do I qualify for funds?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, 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 - $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and an experienced business lending specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we can often provide a response in one hour, provided you submit your request at standard company timings and allow us to use the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statements , we’ll be able to provide an answer within an business day.
For the Larger Business Loan ($100K to $500K) we might be likely to provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain offers have been approved in less than 24 hours.
The fastest way is to ensure you apply during standard company hours, and allow us to use the modern bank verification to verify your bank information online. If you send us documents from your account accounts, it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer in just one hour – provided you apply in standard business times and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statements we can offer a decision within an business day.
For Larger Business Loans ($100K or more) We may be capable of provide you with conditional pre-approval within about six hours. Once you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Some offers have been approved in just 24 hours.
The fastest method can be ensure you apply during standard business hours. You can also let us use the modern bank verification to verify your bank information online. If you decide to upload documents from your account statements, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a certain amount we will consider a number of aspects to determine the health for your business as well as the amount of the repayments your company can support. The total amount of your loan will depend on the particular circumstances for your company.
When you submit an application for a particular amount, we consider a variety of factors to determine how much we can lend you such as well-being for your business and the amount of payments your business can afford. The amount you receive from your loan will depend on the specific circumstances of your business.
Fees & repayments
How much should you charge for an business loan?
When you make an application for our company loan, we will assess the risk assessment the company and offer you with a customised offer including the amount of loan, the term and the interest rates. This company loan is an upfront priced loan which means you be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I’m charged?
Interest rates for company loans rates depend on several factors such as the amount that is that is borrowed, what company assets the money will be used for in addition to the industry that the company operates in, how long the company has been in operation for, whether the business has sufficient cash flow to pay for the loan, and the general health or creditworthiness of the business.
What are the charges?
There aren’t any hidden costs with our company loans, and you’ll know exactly how much you’ll be required to pay, and when, from the day you sign up. There’s no compounding and the loan comes with no additional fees (as as you make your payments in time).
We do not charge an Application Fee. You are able to apply for a loan with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay off the loan earlier?
You may choose to pay back the total amount of your loan in full at any time.
If you do decide to take this route, please call our helpful company lending experts. We will provide you with repayment details along with an early payout estimate. This is calculated as the sum of the principal remaining plus any accrued interest as of the time of early payment plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about the ways we gather the information we collect, use, share and safeguard your data, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and security. We make use of an advanced banking verification system to immediately confirm your bank account information online to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses the assets they have to make a loan. The asset may be a personal asset like the family home, or an business asset such as a vehicle as well as a piece of machine.
The vast majority of lenders, not just the largest banks, are inclined to make loans secured by an asset. If you’re having trouble paying back the loan then the asset could be transferred to the lender. In essence, it’s the process of securing new financing making use of the value of what you already have.
Are I need security for a business loan?
For loans up to $150K there is no requirement for asset security before you can access the money however, we do require an individual guarantee. As long as you follow your loan commitments (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally, you can get personal guarantee and security that is in the form charges on assets.