FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Glendalough Small Business Loans
Let me know more about Glendalough Small Business Loans
Glendalough unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
The application to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and funds may be in your account in 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. This company loan is a cash-based loan and you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. Then, it is broken down into either weekly or daily installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business purpose including cash flow management, business renovations, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
About Larger Glendalough Business Loans
What is the Larger Glendalough Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be in operation for at least 3 years with an annual turnover of $700K. You must 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 demonstrate at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used to fund almost any business need, including business renovations, purchase of new equipment or inventory or as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. This can be done by way of charge over assets, and may be registered with the PPSR or filing as a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally based rather than stipulating security over a particular asset. The person signing the guarantee is personally accountable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR gives preference over private property assigned depending on the date that a security interest has been registered.
An affidavit is an official form of document to offer notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan of $250,000 or more we can offer an initial pre-approval in order to simplify the process. It is possible to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial well-being questions. This is not an offer or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer that you receive could be based on different conditions.
Application process
Are I eligible for funding?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a few minutes and a dedicated business loan specialist will contact you to guide you.
To be eligible for up to $100,000 you’ll require ID details (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we usually offer an answer in just one hour – as long as you make your application during standard company timings and let us use the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements , we will be able to provide an answer in just the span of one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely to provide you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval within just 24 hours.
The most efficient method is to ensure you apply during standard business hours. Also, allow us to use our advance bank verification link to verify your bank information online. If you choose to send us duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) We can usually offer an answer within an hour if you apply within normal business times and permit us to use the bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements we can provide an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) we could be likely to offer you with a conditional pre-approval within six hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Some offers have been approved in 24 hours.
The fastest method would be to make sure you apply during standard business hours. You can also allow us to use our advance bank verification link to instantly check your bank’s information online. If you opt to upload duplicates of your banking statements, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a specific amount we take into consideration a range of variables to determine how much we can lend you health of your business and the extent of payments your business can support. The total amount of your loan will depend on the specifics of your company.
If you apply for a certain amount, we look at a range of aspects to determine the well-being that is your business and the extent of repayments that your business can support. The amount you receive from your loan will be contingent on the particular circumstances of your company.
Fees & repayments
How much should you charge for a business loan?
If you decide to make an application for one of our business financing, we will assess the risk assessment that you have for your company and offer an individualised offer, including the amount of the loan, the duration and interest rates. A business loan is an upfront-priced loan and you’ll know the exact amount you will have to pay, including charges or interest.
What is the factor that determines the price I am charged?
The interest rates on company loans rates differ based on various variables like the amount to be borrowed, the business assets the funds will be used for and the sector the company is operating in, how long the company has been in operation, how long the business has enough cash flow to fund the loan, and overall health and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our company loans, and you’ll know exactly how much you’ll be required to pay and when, from day one. There’s no compounding interest, and no extra fees (as as long as you pay your payments in time).
We don’t charge an application fee. You can make an application for loans with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You can choose to repay the total amount of your loan in full at any time.
If you do decide to do this please contact our helpful business loan professionals. We will offer you with the details of your repayment along with an early payout estimate. It will be calculated using the total of the principal remaining and any accrued interest at the date of early payout in addition to 1.5 percent of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To ensure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and being transparent about the ways we gather data, process, exchange and safeguard your data, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated bank verification system link to instantly verify your bank account information online so we can offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner borrows from an asset they own to obtain the loan. The asset can be either an asset belonging to the personal, like the family home, or an company asset like a truck or other piece of machinery.
The vast majority of banks, not just 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 sold by the lender. In essence it’s means of securing new financing by taking advantage of the value of what you already have.
Do I require security to get an company loan?
For loans up to $150,000 the requirement for asset security is not required upfront to access the money however, we do require a personal guarantee. So long as you comply with the terms of your loan (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150K generally, you can get the option of a personal ensure and security in the form charges on assets.