FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Glenside Small Business Loans
Let me know more about Glenside Small Business Loans
Glenside unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
The application to get your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and the money could be in your account within 24 hours. Traditional business loans have an annual rate of interest together with additional fees and charges. We offer a company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount payable including any fees, interest or charges. Then, it is broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business purpose including control of cash flow company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal use.
About Larger Glenside Business Loans
What is the Larger Glenside Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is 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 the company needs to have been operating for at least three years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Larger Business Loan can be used for almost all company use, including business renovations, to purchase new equipment or inventory, 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 to obtain funding above $150,000. It’s by taking a charge against assets, and may be registered with the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is generally in nature rather than specifying security over an asset. The person signing the guarantee is personally liable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR grants the priority of personal property assigned according to the date a registration of a security interest.
The caveat can be described as a formal document that is filed to offer an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans of $250K or more we can offer an initial pre-approval that will help simplify the process. We might 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, which involves you answering a few financial health checks. This is not an offer or guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer that you receive could be on different conditions.
Are I eligible for funding?
You may be eligible for a 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)
- must show at least six months of trading (for for the 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 complete the online application in just a few minutes, and a dedicated business credit specialist will contact you to guide you through the process.
For a loan of up to $100,000 you’ll require ID details (valid Driver’s License) along with a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent, 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials, Aged Payables and Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we usually offer an answer in just one hour, provided you apply in standard business times and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements , we will be able to offer the decision in just the span of one company day.
For Larger Business Loans ($100K to $500K) we may be able to offer you with pre-approval conditional to your application within 6 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 upon the circumstances for each application. Certain transactions have received approval within the space of 24 hours.
The fastest way is to make sure you apply during normal company hours. You can also permit us to use the advance bank verification to check your bank’s information online. If you opt to upload documents from your account accounts, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we typically offer an answer within an hour – as long as you apply within normal business hours and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statements we can provide a decision in just an business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to offer you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Some transactions have received approval within just 24 hours.
The most efficient method can be ensure you apply during standard business hours and allow us to use our modern bank verification to verify your bank information online. If you choose to send us the copies of bank statement, it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we look at a variety of aspects in order to assess what is the well-being of the business and the level of repayments that your company is able to afford. The amount you receive from your loan will depend on the specific circumstances the business.
When you submit an application for a certain amount, we will consider a number of variables to determine the well-being that is your company and the level of the repayments your company can support. The total amount of the loan will be determined by the specific circumstances that are unique to your company.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for business loans with us company credit, we’ll assess the risk assessment that you have for your company and offer you with a tailored proposal that includes the amount of loan, the term and the interest rates. This company loan is an upfront cost loan which means you be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
Business loan interest rates vary due to variables like the amount to be borrowed, what company assets the funds will be used for, the industry the business operates in, the long the company has been in operation, in the event that the company has enough cash flow to fund the loan, and also the overall well-being or financial standing of the company.
What are the charges?
There aren’t any hidden costs for our company loans. You’ll know precisely what you’ll be required to pay, and when, right from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You can apply for a loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You may choose to pay back the total amount of your loan at any point in time.
If you are deciding to take this route, please call our helpful business loans professionals. They’ll offer you with repayment details along with an early payout estimate. This will be calculated as the sum of the principal balance plus any accrued interest as of the time of early payment in addition to 1.5 percent of the principal remaining as well as any outstanding fees.
How do repayments work?
To ensure you do not miss repayments and to fit in with your cash flow routine, we provide payments that are either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about how we collect information, use it, and exchange it, as well as secure your information, is of huge importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We employ an exceptionally sophisticated bank verification system to instantly verify the bank account details online, allowing us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term “asset-based” refers to borrowing where a business owner makes use of the assets they have to obtain the funds for a loan. The asset can be either an asset belonging to the personal, like the family home, or a business property like a truck as well as a piece of machine.
The vast majority of the lenders even the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, the asset might be offered for sale by the lender. In essence, it is an opportunity to secure new funding taking advantage of the value of what you already own.
What do I need security for a company loan?
For loans of up to $150,000, no asset security is required prior to the loan’s access however, we require a personal guarantee. require a personal guarantee. So long as you comply with the loan terms (as specified in your loan contract document), asset security is not required. For loans of over $150K generally, there is personal guarantee and security in the form of the charge of assets.