FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Gilston Small Business Loans
Tell me what you think of the Gilston Small Business Loans
Gilston unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from the traditional company loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and the funds could be in your account in 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. The company loan is a cash-based loan therefore you’ll know in advance the total amount payable including any fees, interest or charges. This is then broken down into either a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company use, including managing cash flows, business remodeling, marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About the Larger Gilston Business Loans
What is the Larger Gilston Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is determined 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 have been in operation for at least 3 years and generate an annual revenue of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be utilised?
A large business loan can be used to fund almost any company use, including company remodeling, buying equipment or inventory for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. It’s by taking a charge over assets, and could include registering this through the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature rather than stipulating the security for a particular asset. The person who signs the guarantee is personally responsible if the company the borrower fails 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 which are registered with respect to personal property (including goods or assets). The PPSR permits priority over personal property to be granted according to the date a security interest was registered.
A caveat is a legal document filed to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help make the process. We could be able to apply for this without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial health questions. This is neither an offer nor a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer that you are offered could be based on different conditions.
Application process
Do I qualify for funds?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in just a few minutes, and an experienced company loan specialist will be in touch to assist you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence) and a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent twelve months of bank statements, IRD statements and the last two years’ finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we can often offer an answer within one hour if you submit your request within quality business times and let us use the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statements we can provide a decision within just 1 company day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be capable of offer the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Some transactions have received approval within just 24 hours.
The quickest way to apply would be to make sure you apply during standard business hours and allow us to use the modern bank verification link to check your bank’s information online. If you opt to send us copies of your bank statements it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) We can usually offer a response in one hour, provided you submit your request in normal business timings and permit us to 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 provide the decision within 1 business day.
For the Larger Business Loans ($100K and up) we could be in a position to offer you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain transactions have received approval in just 24 hours.
The fastest way can be ensure you apply during standard business hours. Also, allow us to use our sophisticated bank verification link to check your bank’s information online. If you decide to send us copies of your bank statement, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a specific amount we consider a variety of elements that determine your well-being of your company as well as the amount of payments your company can support. The amount you receive from your loan will depend on the particular circumstances for your business.
When you make an application for a specific amount we will consider a number of variables to determine how much we can lend you such as health for your business and the amount of payments your company is able to afford. The amount you receive from the loan will be determined by the specifics of your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to make an application for the company loan, we will assess the risk assessment the company and offer you with a customised offer, including the amount of the loan, the duration and interest rates. A business loan is an upfront priced loan therefore you will be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I am charged?
Interest rates for business loans rates differ based on various variables like the amount to be borrowed, what company assets the money will be used for in addition to the industry that the business operates in, how long the company has been in operation for, what percentage of the business has sufficient cash flow to fund the loan, and also the overall well-being or financial standing of the business.
What are the cost?
There aren’t any hidden charges for our business loans. You’ll know exactly how much you’ll need to pay and when, from day one. There’s no compounding interest, and there are no additional charges (as long as you make your payments punctually).
We do not charge an application fee. You can make an application for loans absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay out the loan in advance?
You may choose to pay back all of your loan at any point in time.
If you do decide to do this please contact our helpful company loan experts. They’ll offer you with details on repayment as well as an early payout amount. 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 remaining principal plus any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about how we collect the information we collect, use, share and safeguard your data, is vital and a vital element 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 sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We utilise a sophisticated bank verification system that allows you to immediately verify the bank account details online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner uses an asset that they own to get the funds for a loan. The asset can be an individual asset, such as the family home or a company asset like a truck or piece of equipment.
The majority of the lenders including the major banks, prefer to secure loans against an asset. If you are having difficulty paying back the loan, then your asset may be transferred to the lender. In essence it’s a way of securing new funding using the worth of the asset you already have.
What do I need security for a company loan?
For loans that exceed $150,000, the requirement for asset security is not required upfront to access the money However, we do require the personal guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract document), asset security will never be required. For loans over $150K typically, you will need the option of a personal guarantee and security in the form a charge over assets.