Business Loans – Frequently Asked Questions
From application to repayments, here is what you need to know about loan processes.
What are business loans?
Business loans are a source of finance that is used to help a company get off the ground, manage daily business activities or take their next step. These loans are specifically designed for companies that need to make substantial purchases to develop their company, or find themselves in need of extra funding to cover an increase in outgoings, such as renting new premises or hiring additional staff.
GKBank offers the most appropriate financial product for your company based on your company’s unique needs and circumstances.
What different types of business loan are available?
GKBank currently offers the below products under Business Loans;
- Working Capital Loans
- Business Overdraft
- Letter of Guarantee/SBLC.
Please visit here for more detailed information;
How much can my company borrow with a business loan?
The amount of business loans you can access will depend on the circumstances of your business, the type of loan you choose, and the term of that loan. GKBank will evaluate your application for business loan and will inform you about the approved amount & tenor & pricing of your application after reviewing it.
How do I choose a business loan?
As with any financial product, it’s important to ensure that you are prepared to meet the repayments laid out in your contract. One important point for business loans is the APR (Annual Percentage Rate) offered. The APR is the annual cost applied which takes into account fees and your interest obligations. The APR does not include the repayment of the actual money borrowed.
Additionally, it’s worth thinking about the term over which you would like to repay your loan. If you need a long-term loan, then certain loan types will not be appropriate, and vice versa on shorter terms.
What if my company can’t make my repayments in a timely manner?
In case your company have difficulties in repaying your loan, the first thing you should do is to inform your us of your circumstances. We may help you make your monthly repayments in more flexible conditions.
Why do interest rates of loans vary?
Different loans are offered with different rates since the amount of risk they carry for the lender is relatively different. An unsecured loan is usually offered with a higher interest rate than a secured loan, since it carries a higher risk of the lender losing its money if you can’t make the repayments in a timely manner.
The borrowed amount also affects the interest rates. A large loan is more likely to have a lower rate of interest than a small one, since the administrative costs of a lender are lower for a single large loan compared to those for several small loans. When confirming your application for a loan, don’t forget to check the total amount you’ll pay.
What documents should my company submit when applying for a business loan?
Generally, the documents you are required to submit in the process of applying for a business loan are company’s last 3 years financial statements, Credit rating/Score (if available), Collateral details, legal documents of the company. Keep in mind that GKBank holds the right to require more documents during your application process.