FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Gorrie Small Business Loans
Let me know more about Gorrie Small Business Loans
Gorrie unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an ordinary business loan?
Apply to get the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and have the funds on your account within 24 hours. Traditional company loans refer to an interest rate per annum plus other fees and charges. Our business loan is an upfront priced loan which means you be aware in advance of the total amount payable including the interest, fees and charges. Then, it is divided into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business need, such as managing cash flows, company remodeling, marketing for purchasing inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
About the Larger Gorrie Business Loans
What is the Larger Gorrie Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to be operating for a minimum of 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used to fund almost any business purpose including business renovations, to purchase equipment or inventory as well as for 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. This is as a result of an charge on assets and can include registering this through the PPSR or registering as a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is general in nature, rather than defining security over a particular asset. The person who is signing the guarantee is personally accountable if the company borrower is unable 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 granted to individuals who own personal property (including goods or assets). The PPSR grants preference over private property assigned according to the date the registration of a security interest.
An affidavit is an official document filed to offer the legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan that is greater than $250K, we may offer an initial pre-approval that will help simplify the process. It is possible to do this without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial health questions. This is not an offer of credit or guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you might receive could be on different conditions.
Application process
Can I be eligible for funding?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form in just a few minutes, and a dedicated company lending specialist will be in touch to assist you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Information on the application including credit consent twelve months of bank statements, 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 to $100K) we usually offer an answer in just one hour – as long as you submit your request at standard business timings and let us use the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statement, we’ll provide an answer within one business day.
For the Larger Business Loan ($100K up to $500,000) we might be likely to provide you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved within less than 24 hours.
The most efficient method can be make sure you apply during normal company hours. Also, allow us to use our modern bank verification to verify your bank account information online. If you choose to upload copies of your bank statement, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) We can usually offer an answer within one hour if you apply within standard business timings and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements, we’ll be able to provide an answer in as little as an business day.
For the Larger Business Loans ($100K to $500K) we may be capable of provide you with a conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval document, you will need to wait 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 method is to ensure you apply during normal business hours and let us use the advanced bank verification system to instantly confirm your bank details online. If you opt to upload copies of your bank statement, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a particular amount, we consider a variety of factors that determine what is the health that is your business and the level of the repayments your company can support. The total amount of the loan will be determined by the particular circumstances the company.
When you apply for a specific amount we take into consideration a variety of factors to assess the well-being for your company and the extent of payments your company is able to afford. The total amount of the loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for an business loan?
When you request business loans with us business loans, we’ll assess the risk profile the business and offer you with a customised offer, including the amount of the loan, the duration and the interest rates. A company loan is an upfront cost loan which means you know the exact amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I pay?
Business loan interest rates vary due to variables like the amount to be borrowed, what company assets the funds are used to purchase, the industry the company operates in, how long the company has been in operation for, whether the company has sufficient cash flow to fund the loan, and also the overall well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll be aware of the amount you’ll be required to pay and when, starting from day one. There’s not any compounding interest and no extra fees (as long as you make your payments on time).
We do not charge an Application Fee. You can apply for a loan with without any upfront costs or commitment to apply.
The Origination Fee is the cost 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.
Do I have the option of paying off the loan in advance?
You can decide to repay the entire amount of your advance loan at any time.
If you decide to take this route, please speak to our friendly company loan experts. We will provide you with the details of your repayment along with an early payout estimate. This is calculated as the total of the principal amount remaining and accrued interest to the time of early payout plus 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
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 company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect, use, exchange and protect your information, is vital and an integral aspect 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 as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify the bank account details online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an company owner makes use of an asset they own to get the funds for a loan. The asset may be an individual asset, such as the family home, or it could be a business asset like a truck or piece or equipment.
The vast majority of lenders, even the major banks, prefer to make loans secured by an asset. If you have trouble paying back the loan, then the asset could be transferred to the lender. In essence, it is the process of securing new funding taking advantage of the value of what you already have.
Are I need security for a company loan?
Up to $150,000 in loans it is not necessary to secure assets before you are able to access the money but we require a personal guarantee. require a personal guarantee. As long as you follow your loan commitments (as stipulated in your loan contract document), asset security is not required. For loans of over $150K generally there is a personal ensure and security that is in the form the charge of assets.