FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Grenada North Small Business Loans
Let me know about the Grenada North Small Business Loans
Grenada North unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and funds may be in your account within 24 hours. Traditional company loans reference an annual interest rate along with other charges and fees. Our business loan is a loan that is priced upfront and you’ll be aware of the total amount to be paid, including the interest, fees and charges. This is then broken down into either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company need, such as the management of cash flow, company renovations, marketing to purchase inventory, new equipment, to fund general working capital and much more. The loan cannot be used for personal purposes.
Concerning Larger Grenada North Business Loans
What is the Larger Grenada North Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. Your business 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 of proving at minimum 12 months of business.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly all business reason, such as company renovations, to purchase new 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 requires security?
Asset security is necessary for accessing funds over $150,000. This is as a result of an charge on assets, which could also be registered in the PPSR or filing a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally in nature rather than stating the security of a specific asset. The person who signs the ensure is personally accountable if the business creditor is unable to repay 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 that are registered for personal property (including goods or assets). The PPSR permits the priority of personal property granted according to the date the security interest that is registered.
The caveat can be described as a formal document lodged to offer notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250K, we may offer an initial pre-approval to make the process. We might be able to apply for this without a credit verification and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering some financial health questions. It is not an offer or guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may have different terms.
Application process
Do I qualify for funds?
You can apply 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 business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just complete the online application within a couple minutes, and a dedicated company lending specialist will be in touch to guide you through the process.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank records, IRD statement, last 2 years finalised financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we typically provide a response in one hour – as long as you make your application at quality business times and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements , we are able to offer an answer within one business day.
For Larger Business Loans ($100K or more) we might be in a position to offer you with conditional pre-approval within about six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The quickest method is to make sure you apply during normal business hours. Also, let us use the modern bank verification link to check your bank’s information online. If you decide to upload copies of your bank statement, it takes a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we can often provide an answer within an hour – as long as you apply at standard business timings and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we are able to provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be able to provide you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The fastest way is to make sure you apply during standard business hours and permit us to use the modern bank verification link to instantly check your bank’s information online. If you choose to send us duplicates of your banking statement, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a certain amount, we take into consideration a range of aspects that determine your health of the company and the extent of payments your business can afford. The amount you receive from the loan will be determined by the particular circumstances the company.
If you apply for a certain amount, we look at a range of factors to determine the well-being that is your company and the level of repayments your company can afford. The amount you receive from your loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for an business loan?
If you decide to apply for the business financing, we will assess the risk profile of your business and provide you with a tailored offer, including the amount of the loan, the duration and interest rates. The company loan is an upfront priced loan therefore you will be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I am charged?
Business loan interest rates differ based on various factors such as the amount that is borrowed, the business assets the money will be used for, the industry the company is operating in, how long the business has been in operation and how long the business has sufficient cash flow to pay for the loan, and also the overall well-being and creditworthiness of the business.
What are the cost?
There aren’t any hidden costs with our company loans. You’ll know precisely how much it is that you be required to pay, and at what time, from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan with without any upfront costs or obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You may choose to pay back all of your advance loan at any time.
If you do decide to do this please talk to one of our helpful company loans experts. The specialists will provide you with repayment details along with an early payout estimate. The figure will be calculated as the total of the remaining principal amount and the accrued interest up to the date of early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payment dates and to align your cash flow cycle we offer repayments either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about how we collect, use, exchange and secure your information, is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We make use of an advanced bank verification system link to instantly verify your bank account details online. This allows us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner makes use of assets they own to obtain the funding. The asset can be a personal asset like the family home, or it could be a business asset such as a truck or piece of equipment.
The vast majority of lenders, even the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan then the asset might be transferred to the lender. In essence, it’s an opportunity to secure new funding using the value of what you already have.
Do I need security to get an company loan?
For loans that exceed $150K, no asset security is required upfront to access the money however, we do need an individual guarantee. If you adhere to the terms of your loan (as detailed in your loan contract document), asset security will never be needed. For loans that exceed $150,000, generally there is the option of a personal ensure and security is provided in the form of a charge over assets.