FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Green Bay Small Business Loans
Tell me what you think of the Green Bay Small Business Loans
Green Bay unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from a traditional business loan?
Apply for the Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and have the funds on your account within 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. This business loan is an upfront priced loan therefore you’ll be aware of the total amount to be paid, including any fees, interest or charges. This is then broken down into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any company use, including control of cash flow company renovations, marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Green Bay Business Loans
What is the Larger Green Bay 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 with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to be trading for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can I use the funding for?
A large business loan can be used for nearly any business use, including business remodeling, buying equipment or inventory, as 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 needed for accessing funds over $150,000. It’s by taking a charge on assets and can include registration through the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally based rather than stating security over an asset. The person who is 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 register that is operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR gives preference over private property granted according to the date the security interest that is registered.
Caveats are legal document that is filed to provide the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan of more than $250,000, we may offer a preliminary pre-approval to help smooth out the process. It is possible to do this without credit checks and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial health checks. This is not an offer or guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer you might receive could be subject to different terms.
Do I qualify for funds?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for 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 application process is simple and easy. Just fill out the online application in few minutes and an experienced company loan specialist will contact you to assist you.
To apply for up to $100,000 you’ll need proof of identity (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we typically provide an answer within one hour, provided you apply at standard business timings and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statement, we’ll provide an answer in as little as 1 company day.
For the Larger Business Loan ($100K up to $500,000) we could be able to offer you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Certain transactions have received approval within 24 hours.
The most effective method for you to apply is ensure you apply during standard company hours, and allow us to use the advance bank verification link to verify your bank account information online. If you choose to upload duplicates of your banking statement, it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide a response in one hour if you make your application at normal business timings and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statements we can offer the decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be able 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 between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval in less than 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours. Also, allow us to use our modern bank verification to verify your bank account information online. If you decide to upload documents from your account statements it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we will consider a number of variables in order to assess your health for your company and the amount of repayments that your company can afford. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
If you apply for a particular amount, we consider a variety of variables to determine your well-being for your company and the amount of the repayments your business can support. The amount you receive from the loan will be determined by the specifics of your company.
Fees & repayments
How much should you charge for a business loan?
When you make an application for business loans with us company loans, we’ll assess the risk profile that you have for your company and offer you with a customised offer including the amount of loan, the term and the interest rates. This business loan is an upfront cost loan therefore you will be aware of the total amount payable including any charges or interest.
What is the basis for the rate I am charged?
Business loan interest rates differ based on various factors including the amount borrowed, the company assets the funds will be used for and the sector the company operates in, the long the company has been running as well as in the event that the business has sufficient cash flow to pay for the loan, and the general health and creditworthiness of the company.
What are the costs?
There aren’t any hidden costs with our company loans, and you’ll know exactly how much it is that you need to pay and when, right from the day you sign up. There’s no compounding and there are no additional charges (as long as you make your payments on time).
We don’t charge an Application Fee. You can make an application for loans with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You can choose to repay the total amount of your loan at any point in time.
If you do decide to pursue this option, please call our helpful company loan specialists. We will provide you with details for repayment and an early payment figure. This will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of early payment and 1.5% of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
To make sure you do not miss payment dates and to align your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and protect your information, is crucial and a vital 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 and financial data and our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner makes use of an asset they own to obtain the funds for a loan. The asset can be either an individual asset, such as the family home, or a company asset such as a truck as well as a piece of machine.
The majority of lending institutions, not just the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan, then the asset could be sold by the lender. In essence, it’s an opportunity to secure new financing by taking advantage of the value of what you already have.
Are I require security to get a business loan?
For loans up to $150,000 no asset security is required prior to the loan’s access, however we do need an individual guarantee. As long as you follow your loan obligations (as specified in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150K, generally, there is an individual ensure and security is provided in the form of charges on assets.