FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Goodna Small Business Loans
Tell me what you think of the Goodna Small Business Loans
Goodna unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from the traditional business loan?
Apply to get your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an instant response and the funds could be in your account in 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. The company loan is a pre-paid loan therefore you’ll be aware of the total amount to be paid, including the interest, fees and charges. This is then broken down into either weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company purpose including cash flow management, company remodels and marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
About Larger Goodna Business Loans
What is the Larger Goodna Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the company needs to be in operation for at least 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be used for?
A Business Loan of a larger size can be used to fund almost every business reason, such as business renovations, to purchase equipment or inventory or as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is by taking a charge against assets, and may include the registration of this on the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to repay a loan which is generally in nature rather than stating the security of a specific asset. The person who signs the guarantee is personally accountable if the business borrower is unable to repay 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 priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
Caveats are legal document lodged to provide an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000 we may be able to provide an initial pre-approval in order to make the process. It is possible to get this done without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial well-being checks. It is neither an offer nor a guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you are offered could have different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and a dedicated company credit specialist will call you to guide you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically offer an answer in just one hour – as long as you make your application during standard business timings and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we are able to offer an answer in just an business day.
If you are applying for a Larger Business Loan ($100K and up) we might be likely to provide the conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved in the space of 24 hours.
The quickest method can be ensure you apply during normal business hours and let us use the advance bank verification to check your bank’s information online. If you decide to upload duplicates of your banking statements it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we usually provide an answer in just one hour – as long as you submit your request in standard business time and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements, we’ll be able to offer an answer in just one business day.
For Larger Business Loans ($100K up to $500,000) we might be in a position to offer you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some transactions have received approval within 24 hours.
The fastest method is to ensure you apply during standard business hours, and permit us to use the modern bank verification link to verify your bank information online. If you upload documents from your account accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of factors to determine your well-being of the business and the amount of repayments that your business can support. The amount you receive from your loan will depend on the specific circumstances the business.
If you apply for a set amount, we look at a range of factors to determine the well-being of your business as well as the amount of repayments your company can support. The amount you receive from your loan will depend on the particulars that are unique to your company.
Fees & repayments
How much should you charge for the cost of a business loan?
When you make an application for one of our company loan, we’ll assess the risk profile the business and offer you with a customised offer that includes the amount of the loan, the duration and the interest rates. A business loan is an upfront-priced loan therefore you will be aware in advance of the total amount you will have to pay, including charges or interest.
What determines the rate that I’m charged?
The interest rates on business loans rates depend on several factors such as the amount that is borrowed, what business assets the money are used to purchase as well as the field the company is in, how long the company has been operating for, whether the business has sufficient cash flow to cover the loan, and also the overall health as well as creditworthiness business.
What are the charges?
There are no hidden fees for our company loans. You’ll know precisely what you’ll be required to pay and when, starting from day one. There’s no compounding interest, and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You can get a cash loan with no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay off the loan early?
You can decide to repay the total amount of your loan early at any time.
If you are deciding to do this please call our helpful company loan specialists. They will offer you with details on repayment as well as an early payout amount. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the time of early payout in addition to 1.5% of the remaining principal and any fees that remain unpaid.
How do repayments work?
To ensure you do not miss repayments and to fit in your cash flow cycle we offer repayments that are either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing how we collect information, use it, and exchange it, as well as ensure the security of 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 use industry recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We employ a highly sophisticated banking verification system to immediately verify your bank account information online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an business owner makes use of the assets they have to obtain the loan. The asset may be an asset belonging to the personal, like the family home or a company asset like a truck or piece of equipment.
The vast majority of banks, including the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan then the asset could be taken over by the lender. In essence, it is the process of securing new funding using the value of what you already have.
Should I need security to secure a business loan?
For loans up to $150,000 it is not necessary to secure assets before you can access the money However, we do need a personal guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract document), asset security is not required. For loans of over $150,000 generally, you can get personal guarantee and security in the form charges on assets.