FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Gaythorne Small Business Loans
Let me know about the Gaythorne Small Business Loans
Gaythorne unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an ordinary business loan?
You can apply to get this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and the funds could be on your account within 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. Our company loan is a pre-paid loan therefore you’ll be aware of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into a daily or weekly payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company use, including managing cash flows, business renovations, marketing, to purchase inventory or new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
About the Larger Gaythorne Business Loans
What is the Larger Gaythorne Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost every business need, including business remodeling, buying equipment or inventory or as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It’s by way of charge against assets and can include registering this on the PPSR or filing as a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature rather than stipulating security over an asset. The person signing the ensure is personally responsible if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR grants preference over private property assigned according to the date the security interest that is registered.
An affidavit is an official document lodged to offer the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan of more than $250K it’s possible to offer an initial pre-approval that will help ease the process. We may be able to apply for this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial health checks. It is not an offer of credit or guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you are offered could be subject to different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in few minutes and a dedicated business expert in lending will contact you to help you.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s License) and an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically provide a response in one hour – as long as you apply within standard business hours and let us use the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements we can offer the decision within the span of one business day.
For the Larger Business Loan ($100K or more) we might be able to provide the conditional pre-approval within six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved within 24 hours.
The quickest way to apply would be to make sure you apply during standard business hours. You can also let us use the advanced bank verification system to confirm your bank details online. If you choose to send us the copies of bank accounts, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we can often provide an answer within one hour, provided you submit your request at standard business times and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statement, we’ll offer a decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) we might be able to offer you with a conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some agreements have been approved in 24 hours.
The fastest method can be ensure you apply during standard business hours, and permit us to use the modern bank verification to instantly check your bank’s information online. If you opt to upload copies of your bank statements, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a particular amount, we consider a variety of aspects to determine your well-being for your company and the extent of repayments that your company can afford. The total amount of your loan will depend on the particular circumstances the business.
If you apply for a set amount, we consider a variety of variables to determine the well-being for your company and the level of the repayments your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances for your business.
Fees & repayments
How much do you charge for a business loan?
When you apply for business loans with us business loan, we’ll assess the risk profile for your company and provide you with a customised offer, including the loan amount, the terms and the interest rates. It is a company loan is an upfront-priced loan and you’ll be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I’m charged?
Interest rates for company loans rates depend on a variety of variables like the amount to be that is borrowed, what company assets the funds will be used for in addition to the industry that the business is operating in, how long the company has been running and what percentage of the business has enough cash flow to cover the loan, and general health as well as creditworthiness business.
What are the charges?
There are no hidden costs for our business loans, and you’ll know exactly how much it is that you be required to pay, and at what time, from the very first day. There’s no compounding interest, and no additional fees (as long as you make your payments in time).
We do not charge an application fee. You can get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan in advance?
You may choose to pay back the total amount of your loan early at any time.
If you do decide to pursue this option, please talk to one of our helpful business loan professionals. The experts will offer you with repayment details along with an early payout estimate. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payout and 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work with your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being transparent about how we collect the information we collect, use, share and secure your information, is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system that allows you to immediately confirm your bank account information online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner uses the assets they have to make the funding. The asset can be an asset belonging to the personal, like the family home, or it could be a business asset like a truck as well as a piece of machine.
The vast majority of the lenders even the largest banks, are inclined to make loans secured by assets. If you are having difficulty paying back the loan, then the asset could be transferred to the lender. In essence it is the process of securing additional financing making use of the value of what you already have.
Do I require security to secure a business loan?
Up to $150K in loans no asset security is required upfront to access the money However, we do need the personal guarantee. As long as you follow your loan obligations (as stipulated in your loan contract) the security of assets will never be required. For loans of over $150K generally, you are able to get a personal ensure and security that is in the form a charge over assets.