FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Greenwoods Corner Small Business Loans
Tell me how you can avail the Greenwoods Corner Small Business Loans
Greenwoods Corner unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
The application to this Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and the money could be in your account within 24 hours. Traditional business loans reference an interest rate per annum along with other charges and fees. This business loan is a pre-paid loan so you will be aware in advance of the total amount payable including the interest, fees and charges. This is then broken down into either a daily or weekly payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company need, such as cash flow management, business improvements, advertising, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal use.
Concerning Larger Greenwoods Corner Business Loans
What is the Larger Greenwoods Corner Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to be operating for at least three years, and have an annual income of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost every company reason, such as business improvements, purchasing equipment or inventory for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. This is by way of charge on assets, and may include registration with the PPSR or the registration of a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature, rather than specifying security over an asset. The person signing the guarantee is personally accountable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be assigned according to the date a security interest that is registered.
An affidavit is an official document filed to offer notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval to ease the process. We might be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial health questions. This is in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you are offered could be based on different conditions.
Do I have the right to receive funds?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and a dedicated company lending specialist will contact you to guide you through the process.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Information on the application including credit consent twelve months bank statement, an IRD statements and the last two years’ finalised financial statements, as well as interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K or more) we can often provide an answer within one hour if you apply at quality business time and allow us to utilise the bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statement, we’ll offer a decision within 1 company day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of offer you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some agreements have been approved in just 24 hours.
The quickest way to apply is to make sure you apply during standard business hours and allow us to use our advance bank verification link to instantly check your bank’s information online. If you upload the copies of bank statements it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within an hour – provided you apply during normal business timings and you allow us to use the bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we’ll be able to offer a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) we could be able to offer you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved in just 24 hours.
The quickest method would be to ensure you apply during normal business hours, and let us use the advance bank verification link to instantly confirm your bank details online. If you upload the copies of bank statements it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of elements that determine what is the health for your company and the level of payments your company can support. The amount you receive from the loan will be determined by the specific circumstances for your company.
When you make an application for a specific amount we consider a variety of variables to assess the health for your company and the extent of repayments your company will be able to support. The amount you receive from your loan will depend on the specific circumstances the business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for business loans with us business loan, we’ll assess the risk assessment the business and provide you with a customised proposal that includes the amount of the loan, the duration and the interest rates. It is a business loan is an upfront-priced loan and you’ll be aware in advance of the total amount to be paid, including any charges or interest.
What determines the rate that I pay?
The interest rates on company loans rates depend on several factors including the amount borrowed, what company assets the funds are used to purchase as well as the field the business is operating in, how long the business has been in operation as well as whether the company has enough cash flow to fund the loan, and also the general well-being or financial standing of the company.
What are the cost?
There aren’t any hidden charges for our company loans. You’ll know precisely how much you be required to pay and when, starting from day one. There’s no compounding interest, and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an application fee. You can make an application for loans with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing 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 pay off the loan in advance?
You can repay the entire amount of your loan early at any time.
If you do decide to do this please speak to our friendly business loan specialists. The professionals will offer you with details for repayment as well as an early payout amount. This is calculated as the sum of the principal balance and any accrued interest at the time of early payout, plus 1.5 percent of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align with your cash flow general, we offer repayments either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing the ways we gather data, process, exchange and safeguard your data, is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We employ a highly sophisticated bank verification system that allows you to instantly verify the bank account details online, allowing us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner makes use of an asset that they own to make the funds for a loan. The asset can be an individual asset, such as the family home, or it could be a business asset like a truck or other piece of machinery.
The vast majority of banks, even the banks with the biggest size, prefer to secure loans against assets. If you have trouble paying back the loan, the asset might be sold by the lender. In essence, it’s a way of securing new funding using the worth of the asset you already own.
Do I need security for an company loan?
Up to $150,000 in loans there is no requirement for asset security prior to the loan’s access, however we require a personal guarantee. require an individual guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be required. For loans over $150K generally, there is a personal guarantee and security is provided in the form of an asset charge.