FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Gumdale Small Business Loans
Tell me more about Gumdale Small Business Loans
Gumdale unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from an ordinary business loan?
Apply to get this Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and funds may be available in just 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. The business loan is a cash-based loan therefore you’ll be aware of the total amount to be paid, including any fees, charges or charges. This is then broken down into either a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any business purpose including the management of cash flow, company improvements, advertising to purchase inventory, new equipment, as general working capital and much more. The loan is not available for personal use.
About the Larger Gumdale Business Loans
What is the Larger Gumdale Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. It is necessary to be 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.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly all business reason, such as business improvements, purchasing equipment or inventory as well as for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. It is usually as a result of an charge over assets, and could include the registration of this with the PPSR or registering as a caveat.
A director’s or personal ensure is a guarantee to repay credit that is general in nature, rather than stating the security of a specific asset. The person who is signing the guarantee is personally accountable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR grants priority over personal property to be granted depending on the date that a security interest was registered.
The caveat can be described as a formal form of document to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger company loans that is greater than $250K we can offer a preliminary pre-approval to help smooth out the process. We may be able to apply for this without a credit check and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial health checks. It’s not an offer or guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you might receive could be based on 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, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form in few minutes and an experienced business lending specialist will be in touch to help you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s License), an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you apply in standard company times and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statements we can provide a decision in just an business day.
For Larger Business Loans ($100K and up) we may be likely to provide you with a 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 upon the circumstances for each application. Certain transactions have received approval in 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard company hours. Also, let us use the modern bank verification link to verify your bank information online. If you decide to send us duplicates of your banking statements , it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually offer a response in one hour – as long as you make your application at standard business timings and let us use the bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements, we will be able to provide an answer within 1 business day.
For Larger Business Loans ($100K to $500K) we might be likely to provide you with conditional pre-approval in about 6 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 specifics of each application. Some deals have been approved within just 24 hours.
The quickest method would be to make sure you apply during normal business hours. You can also allow us to use the advanced bank verification system to check your bank’s information online. If you decide to send us copies of your bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of elements in order to assess your health of the business and the amount of repayments that your company can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
When you make an application for a certain amount, we take into consideration a variety of elements to assess how much we can lend you such as well-being for your company and the extent of repayments that your business is able to afford. The amount you receive from your loan will be contingent on the specific circumstances the business.
Fees & repayments
How much should you charge for a company loan?
If you decide to request one of our company loans, we’ll assess the risk profile the business and provide you with a tailored proposal that includes the amount of loan, the term and interest rates. This business loan is an upfront priced loan so you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I pay?
The interest rates on business loans rates differ based on various factors such as the amount that is of money borrowed, the business assets the funds will be used for as well as the field the company operates in, how long the company has been operating as well as what percentage of the company has enough cash flow to support the loan, and also the overall health or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our business loans. You’ll know exactly how much it is that you need to pay, and when, from the day you sign up. There’s no compounding interest and no additional fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of the loan at any point in time.
If you do decide to take this route, please call our helpful company loan professionals. We will provide you with repayment details and an early payout figure. The figure will be calculated as the total of the principal remaining and any accrued interest at the time of early payout and 1.5% of the principal balance plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow general, we offer repayments either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect, use, exchange and secure your information, is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We utilise a sophisticated bank verification system link to instantly verify the bank account details online so we can offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the company owner borrows from an asset that they own to make the funds for a loan. The asset could be an individual asset, such as the family home, or it could be a company asset like a truck as well as a piece of machine.
The vast majority of the lenders even the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan then your asset may be sold by the lender. In essence, it is means of securing additional financing taking advantage of the value of what you already own.
Do I require security to secure an company loan?
For loans that exceed $150,000, the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. need an individual guarantee. If you adhere to your loan commitments (as specified in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 typically, you will need the option of a personal guarantee and security in the form of the charge of assets.