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 with terms between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
You can apply for this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and funds may be on your account within 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. The company loan is a cash-based loan which means you be aware in advance of the total amount due, which includes any fees, interest or charges. This is then broken down into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business reason, such as cash flow management, business renovations, marketing, to purchase inventory or new equipment, for general working capital and 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 amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been operating for a minimum of 3 years, and have an annual income of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan is a great option for almost all business need, including company improvements, purchasing new equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It is usually by taking a charge against assets, which could also include registration through the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature, rather than stating the security of a specific asset. The person who signs the guarantee is personally liable 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 reflects security interests that are registered for personal property (including items or assets). The PPSR gives preference over private property assigned according to the date a security interest was registered.
An affidavit is an official document lodged to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of $250,000 or more it is possible to offer an initial pre-approval to make the process. We might be able to do this without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health checks. This is not an offer or guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer that you might receive could have different terms.
The application process
Are I eligible for funding?
You can 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)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application in few minutes and an experienced business loan specialist will contact you to help you.
To apply for up $100,000, you’ll require identification details (valid Driver’s License) as well as an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent and 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within one hour if you submit your request during standard business hours and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your banking statements we can provide a decision in just 1 business day.
For Larger Business Loans ($100K to $500K) we could be likely to offer you with pre-approval conditional to your application in around six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some deals have been approved in the space of 24 hours.
The quickest way to apply would be to ensure you apply during standard company hours. Also, allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you choose to upload duplicates of your banking statement, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually offer a response in one hour – as long as you make your application during normal business time and permit us to utilise the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statements, we will be able to provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we could be likely to provide the conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Some transactions have received approval in just 24 hours.
The most effective method would be to ensure you apply during normal business hours. You can also let us use the sophisticated bank verification link to instantly verify your bank account information online. If you send us duplicates of your banking statements, it can take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a particular amount, we will consider a number of elements in order to assess your well-being for your company as well as the amount of repayments your company can support. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
When you make an application for a set amount, we will consider a number of factors to determine the health that is your business and the level of payments your business can afford. The total amount of your loan will be contingent on the specific circumstances of your business.
Fees & repayments
How much should you charge for a company loan?
When you make an application for our business credit, we will assess the risk assessment that you have for your company and provide you with a customised offer, including the amount of the loan, the duration and interest rates. It is a business loan is an upfront-priced loan therefore you will be aware of the total amount payable including any charges or interest.
What is the basis for the rate I pay?
Business loan interest rates depend on a variety of factors like the amount of money of money borrowed, the company assets the funds will be used for and the sector the business operates in, the long the business has been in operation, how long the company has sufficient cash flow to cover the loan, and overall health or creditworthiness of the business.
What are the cost?
There aren’t any hidden costs with our business loans, and you’ll know precisely how much it is that you be required to pay and when, from the day you sign up. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan with no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan earlier?
You may choose to pay back all of your loan at any point in time.
If you choose to do this please speak to our friendly company loan specialists. We will offer you with the details of your repayment and an early payment figure. The figure will be calculated as the total of the remaining principal amount and the accrued interest up to the time of early payment and 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being upfront about how we collect, use, exchange and secure your information, is crucial and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We use an advanced banking verification system to instantly verify your bank account information online so we can offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner utilises the assets they have to secure the loan. The asset may be a personal asset like the family home or an business asset such as a truck or piece or equipment.
The vast majority of banks, even the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan, your asset may be offered for sale by the lender. In essence, it is means of securing new financing making use of the value of what you already own.
Should I need security to get an company loan?
For loans up to $150K it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. need the personal guarantee. As long as you follow the terms of your loan (as specified in your loan contract document) the security of assets is not needed. For loans over $150,000 generally there is personal guarantee and security in the form charges on assets.