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 are able to avail the Gold Coast Small Business Loans
Gold Coast unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from an traditional business loan?
The application to get your Small Business Loan in under 10 minutes by phone. You will receive a same day response and the money could be in your account within 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. Our business loan is an upfront priced loan therefore you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. This is then broken down into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business need, such as the management of cash flow, company improvements, advertising, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
Concerning 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 business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to be operating for a minimum of 3 years with an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A large company loan can be used to fund almost every company purpose including business improvements, purchasing equipment or inventory or as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. It’s in the form of a charge against assets, and may include registration with the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally based rather than stating security over an asset. The person who signs the ensure is personally liable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be granted according to the date a security interest has been registered.
The caveat can be described as a formal document that is filed to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250K we may be able to provide a preliminary pre-approval to help simplify the process. We may be able to make this decision without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering some financial health questions. It is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may have different terms.
The application process
Do I have the right to receive funds?
You can apply for an business 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)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Just complete the online application in just a few minutes, and an experienced company credit specialist will be in touch to guide you.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, and interim current financial year financials, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we usually provide an answer within an hour, provided you submit your request at quality business time and let us use the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer a decision within just the span of one company day.
For Larger Business Loans ($100K up to $500,000) we could be capable of provide you with pre-approval conditional to your application in about six 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 on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The most efficient method would be to make sure you apply during standard company hours and permit us to use the modern bank verification link to confirm your bank details online. If you choose to send us copies of your bank statement, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) We can usually provide a response in one hour, provided you submit your request in standard business hours and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements we can provide the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K and up) we may be likely to offer you with pre-approval conditional to your application within about six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved in 24 hours.
The quickest method is to ensure you apply during normal business hours, and let us use the advance bank verification link to check your bank’s information online. If you opt to send us the copies of bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a specific amount we consider a variety of variables to determine the well-being of the business and the amount of repayments that your company is able to afford. The total amount of your loan will be contingent on the particular circumstances of your company.
When you submit an application for a set amount, we look at a range of factors to determine how much we can lend you such as well-being of your company and the amount of the repayments your business can support. The amount you receive from your loan will be contingent on the particulars for your company.
Fees & repayments
How do you charge for a company loan?
If you decide to request one of our business credit, we will assess the risk profile of your company and provide you with a tailored offer, including the loan amount, the terms and the interest rates. It is a business loan is an upfront-priced loan so you will be aware of the total amount payable including any charges or interest.
What determines the rate that I’m charged?
The interest rates on business loans rates vary due to factors such as the amount that is borrowed, the business assets the funds are used to purchase and the sector the company operates in, how long the business has been in operation as well as what percentage of the business has sufficient cash flow to cover the loan, as well as the overall well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our company loans. You’ll know exactly how much you need to pay, and when, from day one. There’s no compounding interest and no extra fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the total amount of your loan at any point in time.
If you choose to do this please talk to one of our helpful company loan experts. We will provide you with details for repayment and an early payment figure. It will be calculated using the total of the remaining principal amount and accrued interest to the time of early payment plus 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To help you avoid missing due dates and also to be in line with your cash flow cycle we offer repayments either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing the ways we gather, use, exchange and safeguard your data, is crucial and is a crucial aspect 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 sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We utilise a sophisticated bank verification system link to instantly verify the bank account details online, allowing us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a business owner uses assets they own to secure the funds for a loan. The asset may be an individual asset, such as the family home, or an company property like a truck or piece or equipment.
The majority of lenders, not just the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan, the asset could be taken over by the lender. In essence it’s means of securing additional financing using the value of what you already have.
Should I need security to get an business loan?
For loans up to $150,000 the requirement for asset security is not required upfront to access the money, however we do need an individual guarantee. As long as you follow the terms of your loan (as detailed in your loan contract), asset security will never be needed. For loans that exceed $150,000, typically, you will need an individual ensure and security in the form of the charge of assets.