FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Gracefield Small Business Loans
Let me know how you are able to avail the Gracefield Small Business Loans
Gracefield unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from a traditional business loan?
It is possible to apply to get this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and funds may be available in just 24 hours. Traditional business loans reference an interest rate per annum as well as other fees and charges. The business loan is a loan that is priced upfront so you will be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business use, including control of cash flow business remodels and marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
About larger Gracefield Business Loans
What is the Larger Gracefield Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been operating for at least three years, and have an annual income of $700,000. Your business must belong to 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 minimum 12 months of continuous trading.
What can the funding be used for?
A large business loan can be used to fund almost any business purpose including business renovations, purchase of new equipment or inventory or as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It’s by taking a charge over assets and can include registration in the PPSR or the registration of a caveat.
A personal or director’s guarantee is a promise to repay a loan which is generally in nature rather than stating security over an asset. The person who is signing the ensure is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR grants the priority of personal property granted in accordance with the date on which a registration of a security interest.
Caveats are legal document filed to provide an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans of more than $250K we can offer an initial pre-approval to smooth out the process. We could be able to do this without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being questions. It’s not an offer or guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer you are offered could be subject to different terms.
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 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K 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 lending specialist will be in touch to guide you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we can often offer an answer within one hour, provided you submit your request at quality company time and permit us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll offer an answer in just 1 business day.
For Larger Business Loans ($100K or more) we might be likely to offer the conditional pre-approval within about six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be quicker based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The quickest method can be ensure you apply during standard business hours. You can also permit us to use the advance bank verification to instantly verify your bank account information online. If you choose to upload duplicates of your banking statement, it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer within an hour – provided you apply during normal business timings and let us use the bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statement, we’ll provide the decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of offer you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain agreements have been approved within the space of 24 hours.
The quickest method is to ensure you apply during standard business hours. You can also let us use the modern bank verification to instantly verify your bank account information online. If you opt to send us duplicates of your banking statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a certain amount, we look at a variety of factors in order to assess what is the well-being that is your company and the amount of repayments your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances of your business.
When you make an application for a specific amount we take into consideration a variety of aspects to assess your well-being of your company and the level of the repayments your company can support. The total amount of your loan will be contingent on the particulars the company.
Fees & repayments
What is the cost for the cost of a company loan?
When you request the company loans, we’ll assess the risk profile that you have for your company and provide you with a customised offer including the amount of loan, the term and interest rates. This business loan is an upfront-priced loan so you will know in advance the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I pay?
Business loan interest rates differ based on various factors such as the amount that is of money borrowed, the business assets the money are used to purchase in addition to the industry that the company is operating in, how long the business has been running for, whether the business has sufficient cash flow to support the loan, and general health or creditworthiness of the business.
What are the fees?
There are no hidden costs for our business loans. You’ll know precisely how much you need to pay and at what time, from day one. There’s no compounding interest, and no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to get a cash loan with no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan early?
You may choose to pay back the total amount of your loan at any point in time.
If you choose to do this please speak to our friendly company credit professionals. The professionals will provide you with the details of your repayment and an early payout figure. This will be calculated as the sum of the principal amount remaining and the accrued interest up to the date of early payout, plus 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and ensure the security of your information is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We make use of an advanced bank verification system that allows you to instantly verify your bank account details online to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner uses the assets they have to secure a loan. The asset could be an asset belonging to the personal, like the family home or an business asset such as a truck or piece or equipment.
The majority of the lenders including the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan, the asset could be sold by the lender. In essence, it is an opportunity to secure new funding taking advantage of the value of what you already own.
Are I need security for an company loan?
For loans up to $150,000 there is no requirement for asset security before you are able to access the money, however we require a personal guarantee. need an individual guarantee. As long as you follow the terms of your loan (as stated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150,000 generally, there is personal guarantee and security in the form the charge of assets.