FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Gnangara Small Business Loans
Let me know what you think of the Gnangara Small Business Loans
Gnangara unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes by phone. You will receive an instant response and the funds could be available in just 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. This company loan is an upfront priced loan so you will be aware in advance of the total amount payable including the interest, fees and charges. Then, it is broken down into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company need, such as managing cash flows, company remodels and marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan is not available for personal use.
About larger Gnangara Business Loans
What is the Larger Gnangara Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be in operation for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used to fund almost any company use, including business renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This can be done in the form of a charge over assets and can include registration with the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature, rather than specifying security over a particular asset. The person who signs the ensure is personally accountable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be assigned in accordance with the date on which a security interest has been registered.
Caveats are legal document lodged to offer the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250,000 it’s possible to offer a preliminary pre-approval to help simplify the process. It is possible to apply for this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering some financial health checks. It is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer you might receive could have different terms.
Application process
Are I eligible for funding?
You can apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a 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 simple. Simply complete the online form within a couple minutes, and an experienced business loan specialist will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent twelve months of bank statements, IRD statement and the last two years’ finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer within an hour if you apply in standard business hours and permit us to use the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statement, we’ll provide a decision within 1 company day.
For the Larger Business Loan ($100K or more) we may be capable of provide you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Some agreements have been approved within 24 hours.
The most efficient method is to make sure you apply during standard company hours. You can also allow us to use our advance bank verification to instantly confirm your bank details online. If you upload the copies of bank statements it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within an hour, provided you make your application within standard business hours and let us utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements, we’ll be able to offer the decision within 1 business day.
For the Larger Business Loans ($100K to $500K) we could be capable of offer you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Certain deals have been approved within the space of 24 hours.
The most effective method can be make sure you apply during standard business hours and allow us to use our sophisticated bank verification link to verify your bank account information online. If you opt to send us duplicates of your banking accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a specific amount we consider a variety of aspects to determine the health for your company and the level of repayments that your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances the company.
When you apply for a certain amount, we consider a variety of elements to assess the well-being for your company and the level of the repayments your business will be able to support. The amount you receive from the loan will be determined by the particular circumstances the business.
Fees & repayments
How much do you charge for an company loan?
If you decide to make an application for one of our business loans, we’ll assess the risk assessment the company and offer you with a tailored proposal that includes loan amount, term and interest rates. The company loan is an upfront cost loan which means you be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What determines the rate that I’m charged?
Business loan interest rates depend on several factors including the amount borrowed, the company assets the money are used to purchase in addition to the industry that the company is in, how long the company has been in operation and what percentage of the company has sufficient cash flow to cover the loan, and also the general health or creditworthiness of the company.
What are the charges?
There are no hidden fees with our company loans. You’ll know precisely how much it is that you be required to pay and when, starting from the day you sign up. There’s no compounding and the loan comes with no additional fees (as long as you make your payments in time).
We do not charge an Application Fee. You can get a cash loan with without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan earlier?
You can decide to repay the total amount of your loan at any point in time.
If you do decide to pursue this option, please speak to our friendly business loan experts. The experts will provide you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the time of the early payout plus 1.5% of the principal balance and any fees that remain unpaid.
What are the repayment methods?
To make sure that you don’t miss payments and to work with your cash flow general, we provide repayments either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about how we collect information, use it, and exchange it, as well as secure your information, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account details online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an company owner borrows from an asset that they own to get the loan. The asset may be an individual asset, such as the family home, or a business asset like a truck as well as a piece of machine.
The majority of the lenders even the largest banks, are inclined to guarantee loans against an asset. If you’re struggling to pay back the loan, your asset may be transferred to the lender. In essence, it’s the process of securing additional financing using the worth of the asset you already own.
What do I require security to secure an 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 require a personal guarantee. need a personal guarantee. If you adhere to your loan obligations (as detailed in the loan contract) and you are able to meet your obligations, asset security is not required. For loans that exceed $150K, generally, you are able to get a personal guarantee and security is provided in the form of the charge of assets.