FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Greenlane Small Business Loans
Tell me about the Greenlane Small Business Loans
Greenlane unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from an traditional company loan?
The application for your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and funds may be on your account within 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. This company loan is an upfront priced loan so you will know in advance the total amount due, which includes any fees, interest or charges. This is then broken down into either a daily or weekly installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any business reason, such as control of cash flow business renovations, marketing to purchase inventory, new equipment, for general working capital and so much more. The loan cannot be used for personal purposes.
About Larger Greenlane Business Loans
What is the Larger Greenlane Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
It is important to note that 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 loan in this amount the business needs to be operating for at least three years, and have an annual income of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be used for?
A Larger Business Loan can be used to fund almost all company need, including company remodeling, buying equipment or inventory for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. This can be done as a result of an charge over assets and can include the registration of this with the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is generally based rather than stating the security of a specific asset. The person who signs the ensure is personally liable in the event that the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR gives preference over private property assigned according to the date a security interest has been registered.
Caveats are legal form of document to provide the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans that is greater than $250K we can offer a preliminary pre-approval to help simplify the process. We may be able to apply for this without a credit check and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial health checks. This is in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be on different conditions.
Application process
Are I eligible for funding?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a few minutes and a dedicated company credit specialist will contact you to help you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s License) and an active NZBN/IRD, and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent twelve month bank accounts, the IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) We can usually offer a response in one hour, provided you make your application at quality business times and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statement, we’ll provide a decision in as little as 1 business day.
For the Larger Business Loan ($100K up to $500,000) we might be able to provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain offers have been approved within less than 24 hours.
The quickest method can be ensure you apply during normal company hours and allow us to use our advance bank verification to instantly verify your bank information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within one hour if you submit your request in standard business hours and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statements, we’ll be able to provide a decision within 1 business day.
For the Larger Business Loans ($100K and up) we might be in a position to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within 24 hours.
The most effective method is to make sure you apply during normal business hours, and allow us to use our advanced bank verification system link to instantly check your bank’s information online. If you decide to send us the copies of bank statements it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we consider a variety of aspects for determining what is the health for your company and the extent of payments your business can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
When you make an application for a particular amount, we consider a variety of factors to determine your health of the business and the level of payments your business is able to afford. The total amount of the loan will be determined by the particular circumstances for your company.
Fees & repayments
How much should you charge for a business loan?
If you decide to request one of our business loans, we will assess the risk assessment of your business and provide you with a customised offer, including loan amount, term and interest rates. The company loan is a loan that is priced upfront and you’ll know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the amount I will be charged?
The interest rates on business loans rates depend on several variables like the amount to be of money borrowed, the company assets the funds are used to purchase, the industry the company is in, how long the company has been operating, in the event that the business has enough cash flow to fund the loan, and overall health as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges with our company loans, and you’ll know precisely how much you need to pay, and when, starting from day one. There’s not any compounding interest and no extra fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You can apply for a loan with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of your advance loan at any time.
If you decide to do this please contact our helpful company loans specialists. They’ll offer you with details on repayment and an early payment figure. The figure will be calculated as the sum of the principal remaining and the accrued interest up to the date of early payout in addition to 1.5% of the principal remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear the ways we gather, use, exchange and secure your information, is of paramount importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We use an advanced bank verification system link to immediately verify your bank account information online. This allows us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner borrows from assets they own to secure a loan. The asset can be an asset belonging to the personal, like the family home or a company property like a truck or other piece of machinery.
The vast majority of lending institutions, not just the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan then your asset may be transferred to the lender. In essence, it is the process of securing additional financing using the value of what you already have.
Do I require security to secure an business loan?
For loans up to $150K it is not necessary to secure assets in advance to gain access to the funds, however we require a personal guarantee. need an individual guarantee. If you adhere to the terms of your loan (as detailed in the loan contract) the security of assets will never be required. For loans that exceed $150K, generally, there is an individual guarantee and security that is in the form a charge over assets.