FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Grafton Small Business Loans
Tell me more about Grafton Small Business Loans
Grafton unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from a traditional company loan?
The application to this Small Business Loan in under 10 minutes by phone. You will receive an instant response and funds may be in your account in 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. Our business loan is a pre-paid loan so you will know in advance the total amount to be paid, including any fees, interest or charges. Then, it is broken down into either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company purpose including managing cash flows, business remodels and marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Grafton Business Loans
What is the Larger Grafton Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to be trading for at least 3 years with an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used for almost any business use, including company renovations, purchase of inventory or new equipment for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. This is as a result of an charge on assets, and could include registering this with the PPSR or filing as a caveat.
A director’s or personal ensure is a guarantee to repay credit that is general in nature rather than specifying security over a particular asset. The person who signs the guarantee is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned according to the date a security interest was registered.
Caveats are legal document filed to provide the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan of $250K or more it is possible to offer an initial pre-approval that will help simplify the process. We could be able to apply for this without a credit check, and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial well-being checks. It’s not an offer of credit or guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could have different conditions.
The application process
Do I qualify for funds?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Just complete the online application within a couple minutes, and a dedicated company loan specialist will be in touch to guide you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $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, and interim current financial year financials as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer within one hour if you apply within standard business time and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements , we are able to provide a decision within just one company day.
For Larger Business Loans ($100K or more) we might be able to provide the conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved in less than 24 hours.
The fastest way for you to apply is ensure you apply during normal company hours and allow us to use the modern bank verification link to instantly verify your bank account information online. If you choose 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 to $100K) we typically offer an answer in just one hour if you submit your request within standard business time and allow us to use the bank verification system to immediately verify your bank account information online. If you decide to upload copies of your bank statements, we will be able to offer a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) we may be likely to provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval in less than 24 hours.
The fastest method would be to make sure you apply during standard business hours. You can also allow us to use our advance bank verification link to check your bank’s information online. If you send us copies of your bank statements, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of aspects to determine what is the well-being that is your company as well as the amount of the repayments your business can support. The amount you receive from the loan will be determined by the specific circumstances the business.
When you make an application for a particular amount, we consider a variety of elements to assess the health for your company and the amount of payments your company can support. The amount you receive from your loan will depend on the particular circumstances that are unique to your business.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to make an application for the business loans, we will assess the risk profile of your company and offer you with a tailored proposal that includes the amount of loan, the term and the interest rates. It is a company loan is an upfront cost loan therefore you will be aware of the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I pay?
The interest rates on business loans rates differ based on various factors such as the amount that is borrowed, the company assets the funds will be used for as well as the field the company is operating in, how long the business is in operation as well as whether the business has sufficient cash flow to fund the loan, and the general well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden charges for our company loans, and you’ll know precisely what you be required to pay, and when, right from the first day. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can get a cash loan with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back all of your advance loan at any time.
If you are deciding to pursue this option, please contact our helpful company loan specialists. They’ll offer you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal remaining plus any accrued interest as of the time of early payout in addition to 1.5% of the principal balance and any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss payments and to work with your cash flow standard, we offer repayments either daily or weekly. They are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing how we collect the information we collect, use, share and secure your information, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to customer security and privacy. We make use of an advanced bank verification system link to immediately verify your bank account details online to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from the assets they have to secure the funds for a loan. The asset can be an asset belonging to the personal, like the family home or it could be a business property like a truck as well as a piece of machine.
The majority of lenders, even the banks with the biggest size, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, then your asset may be offered for sale by the lender. In essence it’s means of securing new funding taking advantage of the value of what you already have.
Are I require security to secure a business loan?
For loans up to $150K it is not necessary to secure assets upfront to access the money but we require a personal guarantee. require a personal guarantee. If you adhere to the terms of your loan (as stipulated in the loan contract) Asset security is not needed. For loans over $150K generally, there is the option of a personal ensure and security is provided in the form of a charge over assets.