FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Upper Mount Gravatt Small Business Loans
Let me know more about Upper Mount Gravatt Small Business Loans
Upper Mount Gravatt unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
You can apply for your Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and have the funds on your account within 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. The business loan is a pre-paid loan and you’ll know in advance the total amount due, which includes any fees, charges or charges. Then, it is broken down into weekly or daily installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business reason, such as cash flow management, company renovations, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal use.
About the Larger Upper Mount Gravatt Business Loans
What is the Larger Upper Mount Gravatt Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly, depending on you cashflow.
How is the Origination Fee calculated?
This 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?
In order to be eligible for a loan of this size the business needs to have been in operation for at least 3 years and generate an annual revenue of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be used for?
A large company loan is a great option for almost any company purpose including company renovations, to purchase equipment or inventory or as 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 required for accessing funds over $150,000. It is usually by way of charge over assets and can include the registration of this in the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is generally based rather than specifying the security of a specific asset. The person who signs the ensure is personally liable in the event that the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR gives preference over private property assigned depending on the date that a security interest that is registered.
An affidavit is an official document filed to provide the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan of more than $250,000 it is possible to offer an initial pre-approval to make the process. It is possible to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial health checks. It’s not an offer of credit or guarantee of funds. 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 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 business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a couple minutes, and a dedicated company expert in lending will be in touch to guide you.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent twelve month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K or more) We can usually offer an answer in just one hour – as long as you submit your request in standard business time and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statement, we’ll provide the decision in just an business day.
For Larger Business Loans ($100K or more) we could be likely to provide you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some offers have been approved in just 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours. Also, let us use the advance bank verification to verify your bank information online. If you choose to upload duplicates of your banking statements , it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour if you apply at normal business times and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statement, we’ll offer the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we may be capable of offer you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some deals have been approved within just 24 hours.
The quickest method would be to ensure you apply during normal business hours and let us use the advanced bank verification system to instantly verify your bank information online. If you upload duplicates of your banking accounts, it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of variables in order to assess how much we can lend you well-being for your business and the extent of repayments your business will be able to support. The total amount of the loan will be determined by the specifics that are unique to your company.
When you make an application for a certain amount, we look at a range of aspects to determine the health for your business as well as the amount of the repayments your company will be able to support. The amount you receive from your loan will be contingent on the particulars the company.
Fees & repayments
How much do you charge for the cost of a company loan?
When you apply for one of our business loan, we’ll assess the risk assessment that you have for your company and offer you with a tailored offer including loan amount, term and interest rates. This business loan is an upfront cost loan therefore you will know the exact amount to be paid, including any charges, interest rates or fees.
What determines the amount I’m charged?
The interest rates on business loans rates vary due to factors like the amount of money borrowed, what company assets the funds are used to purchase, the industry the company operates in, the long the company has been running for, whether the business has enough cash flow to cover the loan, and also the general well-being or financial standing of the business.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll know exactly how much you’ll need to pay and at what time, from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an application fee. You can request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay out the loan early?
You can choose to repay the entire amount of your advance loan at any time.
If you choose to pursue this option, please call our helpful business credit experts. They will offer you with details on repayment and an early payment figure. This will be calculated as the sum of the principal amount remaining and any accrued interest at the time of the early payout in addition to 1.5% of the principal remaining as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing how we collect data, process, exchange and secure your information, is vital and is an essential aspect 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 sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to customer security and privacy. We make use of an advanced bank verification system to immediately confirm your bank account information online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner makes use of an asset they own to secure a loan. The asset can be an asset belonging to the personal, like the family home or an company asset like a truck as well as a piece of machine.
The majority of lenders, not just the big banks, tend to guarantee loans against assets. If you have trouble paying back the loan, your assets could be taken over by the lender. In essence, it’s an opportunity to secure new financing taking advantage of the value of what you already have.
Are I require security for an business loan?
For loans up to $150,000 there is no requirement for asset security prior to the loan’s access but we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as stated in the loan contract) Asset security is not needed. For loans over $150,000 generally, there is the option of a personal ensure and security that is in the form a charge over assets.