FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Gooseberry Hill Small Business Loans
Tell me more about Gooseberry Hill Small Business Loans
Gooseberry Hill unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
It is possible to apply to this Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and the funds could be on your account within 24 hours. Traditional business loans reference an annual rate of interest together with additional fees and charges. We offer a company loan is a cash-based loan and you’ll know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into either weekly or daily payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business need, such as the management of cash flow, company remodels and marketing to purchase inventory, new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About Larger Gooseberry Hill Business Loans
What is the Larger Gooseberry Hill Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been in operation for at least 3 years and generate an annual revenue of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly every business reason, such as company improvements, purchasing new equipment or inventory for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. It is usually in the form of a charge against assets, and may be registered through the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is generally based rather than defining security over an asset. The person who signs the ensure is personally liable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR grants priority over personal property to be granted according to the date a security interest has been registered.
Caveats are legal document that is filed to provide an official notice of a claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250K we may be able to provide an initial pre-approval to smooth out the process. We may be able to get this done without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves you answering some financial well-being checks. This is not an offer of credit or guarantee of finance. A conditional approval is subject a full credit assessment and any offer you receive could be based on different terms.
The application process
Do I qualify for funds?
You may be eligible for a company 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)
- must show at least six months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application in just a few minutes, and a dedicated business credit specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll also require:
$100K to $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer within an hour – as long as you make your application in standard company time and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statements , we’ll be able to provide the decision in as little as the span of one company day.
For Larger Business Loans ($100K to $500K) we may be capable of offer the conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based on the circumstances of each application. Some offers have been approved within less than 24 hours.
The fastest way would be to make sure you apply during standard business hours. Also, allow us to use the modern bank verification to instantly verify your bank account information online. If you send us duplicates of your banking accounts, it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we typically provide a response in one hour – as long as you apply within standard business timings and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statement, we’ll provide the decision in as little as one business day.
For Larger Business Loans ($100K or more) we could be capable of offer you with a conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Certain offers have been approved within 24 hours.
The most efficient method can be ensure you apply during standard business hours. Also, allow us to use the modern bank verification to instantly check your bank’s information online. If you decide to send us copies of your bank statements it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a specific amount we will consider a number of variables to determine the health of the business and the level of the repayments your business will be able to support. The total amount of the loan will be determined by the particular circumstances for your company.
When you submit an application for a particular amount, we look at a range of aspects to determine your well-being of the company and the extent of repayments your business can support. The total amount of the loan will be determined by the specific circumstances for your business.
Fees & repayments
What is the cost for an company loan?
When you request our business loan, we will assess the risk assessment the company and provide you with a customised offer including the amount of the loan, the duration and the interest rates. The company loan is an upfront-priced loan so you will know the exact amount due, which includes any interest rates, fees or charges.
What determines the rate that I’m charged?
Interest rates for business loans rates depend on a variety of factors including the amount that is borrowed, what business assets the money will be used for, the industry the business operates in, how long the company is in operation, what percentage of the company has enough cash flow to cover the loan, and also the general health and creditworthiness of the business.
What are the cost?
There are no hidden fees for our business loans. You’ll know precisely how much you be required to pay and when, right from day one. There’s not any compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We don’t charge an application fee. You are able to apply for a loan with without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan early?
You can choose to repay all of your loan in full at any time.
If you decide to take this route, please speak to our friendly business loans experts. We will provide you with details for repayment as well as an early payout amount. It will be calculated using the total of the remaining principal amount and accrued interest to the time of the early payout plus 1.5 percent of the remaining principal as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and knowing how we collect data, process, exchange and secure your information, is crucial and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We utilise a sophisticated bank verification system to immediately verify your bank account details online. This allows us to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner makes use of an asset that they own to secure a loan. The asset may be a personal asset like the family home, or it could be a business property like a truck or other piece of machinery.
The majority of the lenders including the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then the asset might be offered for sale by the lender. In essence, it is a way of securing new financing making use of the value of what you already own.
Should I require security to get a business loan?
For loans of up to $150K, the requirement for asset security is not required upfront to access the money However, we require a personal guarantee. need the personal guarantee. So long as you comply with your loan commitments (as detailed in the loan contract) Asset security will never be required. For loans over $150K generally there is an individual ensure and security in the form a charge over assets.