FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Glenside Small Business Loans
Tell me how you can avail the Glenside Small Business Loans
Glenside unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from the traditional business loan?
Apply for the Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and the money could be on your account within 24 hours. Traditional business loans are based on an interest rate per annum together with additional fees and charges. The company loan is a cash-based loan which means you know in advance the total amount to be paid, including any interest, fees or charges. This is then broken down into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company reason, such as the management of cash flow, company improvements, advertising to purchase inventory, new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About Larger Glenside Business Loans
What is the Larger Glenside Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to have been operating for a minimum of 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be utilised?
A Larger Business Loan can be used for almost any business purpose including company renovations, purchase of inventory or new equipment for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s by way of charge over assets, and could include the registration of this through the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is generally based rather than defining security over a particular asset. The person who signs the ensure is personally liable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be granted depending on the date that a security interest was registered.
Caveats are legal document filed to offer notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger business loans of $250,000 or more, we may offer an initial pre-approval to ease the process. It is possible to do this without a credit verification and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes you answering some financial well-being checks. This is neither an offer nor a guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could be on different terms.
The application process
Can I be eligible for funding?
You can apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and a dedicated company expert in lending will be in touch to assist you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we usually offer an answer within one hour if you submit your request within quality business hours and let us make use of the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements , we’ll be able to provide the decision in just one company day.
If you are applying for a Larger Business Loan ($100K and up) we may be likely to provide the conditional pre-approval in around six hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain transactions have received approval in less than 24 hours.
The fastest way would be to ensure you apply during normal company hours. You can also permit us to use the advanced bank verification system to verify your bank account information online. If you decide to upload duplicates of your banking statement, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) We can usually offer an answer within an hour – provided you submit your request in standard business hours and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can offer a decision in just 1 business day.
For the Larger Business Loans ($100K and up) we could be likely to provide you with conditional pre-approval in around six hours. Once you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some offers have been approved within less than 24 hours.
The most effective method for you to apply is make sure you apply during standard business hours, and allow us to use our advanced bank verification system to instantly verify your bank account information online. If you decide to upload duplicates of your banking statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a specific amount we consider a variety of aspects in order to assess the health of the business as well as the amount of payments your company is able to afford. The total amount of the loan will be determined by the specific circumstances the company.
When you apply for a particular amount, we look at a range of aspects to determine the health of the company and the level of payments your business can support. The total amount of your loan will be contingent on the specific circumstances the business.
Fees & repayments
How much should you charge for a business loan?
If you decide to apply for our business financing, we will assess the risk profile of your company and provide you with a customised offer, including the loan amount, the terms and the interest rates. A company loan is an upfront-priced loan so you will know the exact amount payable including any interest rates, fees or charges.
What determines the amount I’m charged?
The interest rates on business loans rates vary due to factors including the amount of money borrowed, the company assets the funds are used to purchase in addition to the industry that the company is operating in, how long the business has been in operation, in the event that the company has sufficient cash flow to pay for the loan, and overall well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our company loans, and you’ll know precisely what you’ll need to pay, and when, right from the day you sign up. There’s no compounding interest, and no extra fees (as long as you make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan early?
You can repay the entire amount of the loan in full at any time.
If you choose to take this route, please call our helpful company lending specialists. The experts will offer you with details for repayment along with an early payout estimate. This is calculated as the total of the remaining principal amount and the accrued interest up to the time of early payout, plus 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line your cash flow schedule, we offer repayments either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing the ways we gather the information we collect, use, share and secure your information, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to customer security and security. We employ a highly sophisticated banking verification system to immediately verify the bank account details online to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner utilises assets they own to secure the loan. The asset could be an individual asset, such as the family home, or an company asset such as a vehicle or other piece of machinery.
The majority of lending institutions, including the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan then your asset may be taken over by the lender. In essence, it is means of securing additional financing making use of the value of what you already have.
Are I need security to secure an business 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. require a personal guarantee. If you adhere to your loan obligations (as stipulated in your loan contract), asset security will never be required. If you take out loans in excess of $150,000 generally there is personal guarantee and security in the form an asset charge.