FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Geebung Small Business Loans
Let me know how you are able to avail the Geebung Small Business Loans
Geebung unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from an traditional business loan?
You can apply to this Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and funds may be in your account in 24 hours. Traditional company loans refer to an annual interest rate plus other fees and charges. We offer a company loan is an upfront priced loan and you’ll know ahead of time the total amount payable including the interest, fees and charges. Then, it is divided into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company reason, such as control of cash flow company remodels and marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
Concerning Larger Geebung Business Loans
What is the Larger Geebung Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to be 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, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funding for?
A large company loan can be used to fund almost any business purpose including business improvements, purchasing equipment or inventory or as 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 necessary for accessing funds over $150,000. This is by way of charge over assets, which could also include registering this in the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally based rather than specifying the security for a particular asset. The person who is signing the ensure is personally accountable if the company 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 reflects security interests that are registered for personal property (including the assets or goods). The PPSR grants preference over private property assigned according to the date the security interest that is registered.
The caveat can be described as a formal document lodged to offer the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans of $250,000 or more, we may offer an initial pre-approval in order to smooth out the process. We might be able to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being questions. This is not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may have different terms.
Application process
Do I have the right to receive funds?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a couple minutes, and an experienced business credit specialist will be in touch to guide you through the process.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s Licence), a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour – as long as you submit your request at standard company times and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statements , we are able to provide an answer in just 1 business day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with conditional pre-approval in around six hours. After you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Certain deals have been approved in less than 24 hours.
The quickest way to apply is to make sure you apply during standard business hours. Also, permit us to use the advance bank verification link to instantly confirm your bank details online. If you send us copies of your bank statement, it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we can often provide a response in one hour – as long as you apply in normal business hours and let us use the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements we can provide the decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be able to offer you with a conditional pre-approval within six hours. Once 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 in 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. You can also allow us to use the sophisticated bank verification link to verify your bank account information online. If you opt to upload copies of your bank statements it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a specific amount we consider a variety of variables for determining how much we can lend you well-being of the business and the level of the repayments your business will be able to support. The amount you receive from the loan will be determined by the particular circumstances the company.
When you apply for a certain amount, we take into consideration a variety of factors to assess how much we can lend you such as health of the business and the extent of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specifics for your business.
Fees & repayments
How much should you charge for a company loan?
When you make an application for one of our business loan, we’ll assess the risk profile of your company and provide you with a customised offer, including the amount of the loan, the duration and the interest rates. A business loan is an upfront-priced loan and you’ll be aware of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Interest rates for company loans rates depend on several factors like the amount of money borrowed, what company assets the money are used to purchase, the industry the business operates in, how long the company has been operating and in the event that the company has enough cash flow to cover the loan, and also the overall health or creditworthiness of the company.
What are the fees?
There are no hidden fees for our company loans. You’ll know precisely how much you need to pay and when, right from day one. There’s no compounding interest, and no additional fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can apply for a loan with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan in advance?
You can choose to repay the total amount of your loan at any point in time.
If you choose to take this route, please talk to one of our helpful company loans professionals. The experts will provide you with the details of your repayment and an early payout figure. The figure will be calculated as the total of the principal balance and the accrued interest up to the time of the early payout and 1.5% of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line with your cash flow routine, we provide payments that are either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about how we collect information, use it, and exchange it, as well as safeguard your data, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated bank verification system link to immediately verify the bank account details online so we can provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an company owner utilises the assets they have to get the loan. The asset may be a personal asset like the family home, or an company asset such as a truck or other piece of machinery.
The vast majority of lenders, including the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, the asset might be taken over by the lender. In essence, it’s a way of securing additional financing using the worth of the asset you already own.
Do I require security for a company loan?
Up to $150K in loans there is no requirement for asset security upfront to access the money, however we require a personal guarantee. need a personal guarantee. So long as you comply with your loan obligations (as specified in the loan contract) the security of assets will never be required. For loans of over $150K generally there is the option of a personal ensure and security is provided in the form of a charge over assets.