FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Gracefield Small Business Loans
Tell me how you are able to avail the Gracefield Small Business Loans
Gracefield 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 are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
Apply to get this Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the funds could be in your account in 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. The company loan is a cash-based loan and you’ll know in advance the total amount due, which includes the interest, fees and charges. This is then broken down into either a daily or weekly installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost every company use, including the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
Concerning Larger Gracefield Business Loans
What is the Larger Gracefield Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to have been operating for at least three years with an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funds be used for?
A Business Loan of a larger size can be used for nearly any business reason, such as business improvements, purchasing inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. This is by way of charge on assets, which could also include registering this with the PPSR or registering as a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature, rather than defining the security of a specific asset. The person who is signing the ensure is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document filed to provide the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting larger company loans that exceeds $250K it’s possible to offer a preliminary pre-approval to help smooth out the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial health questions. This is not an offer of credit or guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you might receive could be subject to different conditions.
Do I have the right to receive funds?
You may apply for an 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 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 simple. Simply complete the online form in just a few minutes, and a dedicated business loan specialist will be in touch to guide you through the process.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent, 12 months of bank records, IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer within an hour – as long as you make your application within quality company time and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements , we are able to offer the decision within just an company day.
For the Larger Business Loan ($100K or more) we may be able to provide the conditional pre-approval within about six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be quicker based on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The most effective method for you to apply is ensure you apply during normal business hours. Also, allow us to use our modern bank verification to verify your bank information online. If you decide to upload duplicates of your banking statement, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) We can usually offer an answer in just one hour, provided you make your application during standard business times and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements, we are able to offer an answer in just the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to offer you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The most effective method would be to make sure you apply during normal business hours. You can also allow us to use the modern bank verification link to instantly verify your bank account information online. If you decide to send us duplicates of your banking statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of elements in order to assess how much we can lend you well-being for your business and the level of repayments that your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances of your business.
If you apply for a set amount, we take into consideration a variety of variables to assess how much we can lend you such as well-being of the company and the level of repayments your company can afford. The amount you receive from your loan will depend on the particular circumstances of your business.
Fees & repayments
What is the cost for an company loan?
When you make an application for the business financing, we will assess the risk profile the business and provide you with a tailored proposal that includes the loan amount, the terms and the interest rates. It is a company loan is a loan that is priced upfront therefore you will be aware of the total amount due, which includes any interest rates, fees or charges.
What determines the amount I will be charged?
Business loan interest rates depend on a variety of factors including the amount borrowed, the business assets the funds will be used for and the sector the business is in, how long the company has been in operation as well as how long the company has enough cash flow to fund the loan, and the general well-being and creditworthiness of the business.
What are the charges?
There are no hidden costs for our business loans. You’ll know exactly how much you’ll need to pay and at what time, from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to make an application for loans absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated with setting up 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 loan.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of your advance loan at any time.
If you decide to do this please call our helpful business credit specialists. The specialists will provide you with repayment details and an early payout figure. This will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payout plus 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow general, we provide repayments either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear how we collect data, process, exchange and protect 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 personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We employ a highly sophisticated bank verification system link to immediately verify your bank account details online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
The term “asset-based” refers to borrowing where an business owner uses assets they own to get the funds for a loan. The asset can be either a personal asset like the family home, or an company property like a truck or piece or equipment.
The vast majority of lenders, including the major banks, prefer to secure loans against assets. If you have trouble paying back the loan, your assets could be transferred to the lender. In essence, it’s the process of securing new financing making use of the value of what you already have.
What do I require security to get a company loan?
For loans that exceed $150,000, the requirement for asset security is not required before you are able to access the money but we require a personal guarantee. require a personal guarantee. In the event that you fulfill the loan terms (as specified in your loan contract), asset security will never be required. If you take out loans in excess of $150K typically, you will need a personal ensure and security in the form charges on assets.