FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Greenbank Small Business Loans
Tell me how you can avail the Greenbank Small Business Loans
Greenbank unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
The application to this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and the money could be in your account within 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. We offer a company loan is an upfront priced loan therefore you’ll be aware in advance of the total amount payable including any fees, interest or charges. Then, it is broken down into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company need, such as cash flow management, company improvements, advertising to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About Larger Greenbank Business Loans
What is the Larger Greenbank Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to be operating for at least three years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funding for?
A larger company loan can be used to fund almost every company use, including company remodeling, buying equipment or inventory as well as for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It is usually by way of charge against assets, which could also include registration through the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is general in nature, rather than specifying security over a particular asset. The person who is signing the ensure is personally liable in the event that the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
Caveats are legal document lodged to provide the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger company loans of $250K or more we may be able to provide an initial pre-approval to simplify the process. We may be able to make this decision without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health questions. This is not an offer or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you are offered could be on different terms.
Application process
Are I eligible for funding?
You are eligible to apply for an business 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)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in just a few minutes, and an experienced business lending specialist will be in touch to guide you through the process.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s License) and 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 consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Information on the application including credit consent, 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically offer an answer within one hour if you submit your request within quality company time and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll provide a decision within an business day.
For the Larger Business Loan ($100K or more) we may be able to offer you with conditional pre-approval within about six hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain deals have been approved in less than 24 hours.
The quickest method is to ensure you apply during normal business hours. You can also allow us to use the modern bank verification to instantly confirm your bank details online. If you decide to upload 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 an answer in just one hour, provided you submit your request at standard business times and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements, we’ll be able to offer a decision in just an business day.
For the Larger Business Loans ($100K to $500K) we could be able to offer you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The most effective method is to ensure you apply during normal business hours and let us use the advance bank verification link to instantly check your bank’s information online. If you opt to upload duplicates of your banking statement, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of variables to determine the well-being of your company and the extent of repayments your company is able to afford. The total amount of the loan will be determined by the specific circumstances for your company.
When you apply for a specific amount we look at a range of elements to determine your well-being for your company and the extent of repayments that your business will be able to support. The amount you receive from the loan will be determined by the specifics for your company.
Fees & repayments
How do you charge for an company loan?
When you apply for the business financing, we’ll assess the risk profile that you have for your company and provide an individualised offer, including the amount of the loan, the duration and the interest rates. The business loan is an upfront-priced loan therefore you will be aware of the total amount to be paid, including any charges or interest.
What is the basis for the rate I pay?
Interest rates for business loans rates depend on a variety of factors like the amount of money of money borrowed, the company assets the money are used to purchase as well as the field the business is in, how long the business is in operation for, how long the company has sufficient cash flow to cover the loan, and also the general well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden costs with our business loans. You’ll know precisely how much it is that you be required to pay, and when, right from the first day. There’s not any compounding interest and no extra fees (as as you make your payments on time).
We do not charge an Application Fee. You are able to apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back all of your loan early at any time.
If you choose to do this please speak to our friendly business loan experts. We will offer you with the details of your repayment as well as an early payout amount. This is calculated as the sum of the remaining principal amount and accrued interest to the date of early payout plus 1.5 percent of the principal amount remaining and any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss payments and to work your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being transparent about how we collect information, use it, and exchange it, as well as protect your information, is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to security for our clients and security. We utilise a sophisticated banking verification system to instantly verify 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 occurs when an company owner borrows from the assets they have to make a loan. The asset could be an individual asset, such as the family home, or an company property like a truck or piece or equipment.
The majority of lending institutions, including the big banks, tend to guarantee loans against an asset. If you have trouble paying back the loan, then your assets could be transferred to the lender. In essence, it is a way of securing additional financing using the worth of the asset you already own.
Are I need security for a company loan?
For loans up to $150K the requirement for asset security is not required in advance to gain access to the funds, however we do require the personal guarantee. So long as you comply with the loan terms (as detailed in your loan contract), asset security will never be needed. If you take out loans in excess of $150,000 generally, there is the option of a personal guarantee and security in the form of a charge over assets.