FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Gorrie Small Business Loans
Tell me more about Gorrie Small Business Loans
Gorrie unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from a traditional business loan?
The application to the Small Business Loan in under 10 minutes online or over the phone, receive a same day response and have the funds available in just 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. We offer a company loan is a pre-paid loan therefore you’ll know in advance the total amount to be paid, including any fees, interest or charges. Then, it is divided into a daily or weekly installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business reason, such as managing cash flows, business remodeling, marketing to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal reasons.
About Larger Gorrie Business Loans
What is the Larger Gorrie Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to have been operating for at least three years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as 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 Larger Business Loan is a great option for almost all business purpose including business renovations, to purchase new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It’s in the form of a charge against assets, which could also include registration through the PPSR or the registration of a caveat.
A director’s or personal ensure 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 liable in the event that the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including objects or assets). The PPSR gives priority over personal property to be assigned according to the date the registration of a security interest.
An affidavit is an official form of document to offer notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250,000 it is possible to offer an initial pre-approval to simplify the process. We might be able to do this without a credit check and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial well-being checks. This is in no way an offer, nor is it a guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could have different conditions.
The application process
Can I be eligible for funding?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in few minutes and a dedicated business expert in lending will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we usually provide a response in one hour, provided you apply at quality company timings and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements , we will be able to offer the decision in as little as one company day.
For Larger Business Loans ($100K or more) we might be in a position to offer you with conditional pre-approval within 6 hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Certain deals have been approved within just 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours and allow us to use our advance bank verification link to instantly verify your bank information online. If you opt to send us duplicates of your banking statements it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we typically offer an answer within an hour – provided you apply within standard business time and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll provide a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be likely to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Certain agreements have been approved within 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours. You can also allow us to use the advance bank verification to instantly check your bank’s information online. If you upload documents from your account statements it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of aspects for determining how much we can lend you health for your company and the level of repayments that your company will be able to support. The amount you receive from the loan will be determined by the specific circumstances for your business.
When you submit an application for a specific amount we take into consideration a variety of elements to assess how much we can lend you such as well-being of your company and the extent of repayments your company is able to afford. The amount you receive from your loan will depend on the specifics of your company.
Fees & repayments
How much should you charge for an business loan?
When you make an application for one of our business loan, we’ll assess the risk profile that you have for your company and offer you with a tailored offer including the amount of loan, the term and the interest rates. The company loan is an upfront cost loan which means you know the exact amount you will have to pay, including charges or interest.
What is the factor that determines the price I am charged?
Interest rates for business loans rates differ based on various variables like the amount to be borrowed, what business assets the funds will be used for and the sector the company is in, how long the business is in operation as well as how long the business has enough cash flow to cover the loan, and the general well-being or financial standing of the company.
What are the cost?
There aren’t any hidden costs for our company loans, and you’ll know exactly how much you be required to pay, and when, right from the first day. There’s no compounding interest and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to get a cash loan with without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan early?
You can choose to repay the entire amount of the advance loan at any time.
If you are deciding to pursue this option, please contact our helpful business lending experts. We will offer you with details on repayment as well as an early payout amount. The figure will be calculated as the sum of the principal balance and any accrued interest at the time of the early payout and 1.5 percent of the principal remaining and any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we provide payments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as making it clear the ways we gather, use, exchange and ensure the security of your information is vital and is a crucial 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 financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We utilise a sophisticated banking verification system to instantly verify your bank account details online. This allows us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the company owner makes use of an asset they own to obtain the loan. The asset can be either an asset belonging to the personal, like the family home or a business asset such as a truck or other piece of machinery.
The majority of lending institutions, including the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, the asset could be transferred to the lender. In essence it is means of securing new financing by using the worth of the asset you already own.
Are I require security to secure an business loan?
For loans up to $150K no asset security is required in advance to gain access to the funds However, we do need a personal guarantee. As long as you follow the terms of your loan (as specified in the loan contract), asset security is not needed. If you take out loans in excess of $150,000 generally, you can get a personal guarantee and security in the form an asset charge.