FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Grafton Small Business Loans
Tell me more about Grafton Small Business Loans
Grafton unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
You can apply for your Small Business Loan in under 10 minutes online or over the phone, receive a same day response and the money could be on your account within 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. We offer a 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, interest or charges. Then, it is divided into weekly or daily installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company reason, such as cash flow management, company remodels and marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
About larger Grafton Business Loans
What is the Larger Grafton Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size the company needs to be trading for at least 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost every company reason, such as company improvements, purchasing new equipment or inventory, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. It is usually as a result of an charge over assets, which could also include registering this on the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to repay credit that is generally based rather than stipulating security over an asset. The person signing the guarantee is personally responsible if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including goods or assets). The PPSR grants preference over private property assigned in accordance with the date on which a registration of a security interest.
Caveats are legal document filed to provide the legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for a Larger Business Loan that is greater than $250K, we may offer a preliminary pre-approval to help ease the process. We could be able to get this done without a credit check and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial health checks. It is not an offer of credit or guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer that you may receive may be based on different conditions.
The application process
Are I eligible for funding?
You may be eligible for an company 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)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in few minutes and an experienced business lending specialist will contact you to guide you through the process.
To apply for up to $100,000 you’ll need ID details (valid Driver’s License), an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour if you submit your request at quality company times and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statement, we’ll offer an answer in just an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to provide you with conditional pre-approval in around 6 hours. Once 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 circumstances of each application. Some agreements have been approved in 24 hours.
The fastest way would be to make sure you apply during normal business hours. Also, allow us to use our advance bank verification link to check your bank’s information online. If you opt to upload copies of your bank statements , it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we typically offer an answer within one hour, provided you make your application during normal business timings and permit us to use the bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statements we can offer the decision in as little as 1 business day.
For the Larger Business Loans ($100K or more) we may be able to offer you with conditional pre-approval in around six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Some offers have been approved in 24 hours.
The fastest method is to make sure you apply during standard business hours. Also, permit us to use the sophisticated bank verification link to verify your bank information online. If you send us the copies of bank accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of factors that determine what is the well-being that is your business and the amount of payments your company can support. The amount you receive from your loan will be contingent on the specifics for your business.
When you submit an application for a set amount, we will consider a number of aspects to determine the well-being for your business and the level of payments your company can afford. The amount you receive from your loan will be contingent on the specifics the company.
Fees & repayments
What is the cost for the cost of a company loan?
When you request our company loan, we’ll assess the risk profile the business and provide you with a customised proposal that includes loan amount, term and the interest rates. The company loan is an upfront priced loan so you will know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I pay?
Business loan interest rates differ based on various variables like the amount to be that is borrowed, what company assets the money will be used for and the sector the company operates in, the long the business has been running and in the event that the business has sufficient cash flow to pay for the loan, as well as the general health or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll know precisely how much you be required to pay, and when, from day one. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan in advance?
You can repay the total amount of your loan early at any time.
If you choose to pursue this option, please speak to our friendly business credit experts. The experts will provide you with details on repayment and an early payment figure. This is calculated as the sum of the remaining principal amount and accrued interest to the time of early payout, plus 1.5 percent of the principal balance and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing due dates and also to be in line with your cash flow routine, we provide repayments either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about how we collect information, use it, and exchange it, as well as ensure the security of your information is of huge importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We make use of an advanced bank verification system link to instantly verify your bank account information online to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the business owner uses an asset they own to get the funding. The asset can be an individual asset, such as the family home, or an business asset such as a vehicle as well as a piece of machine.
The vast majority of lenders, including the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then the asset could be sold by the lender. In essence it’s an opportunity to secure new financing using the value of what you already own.
Should I need security to secure a business loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money however, we do need the personal guarantee. If you adhere to your loan commitments (as stated in your loan contract document) the security of assets is not needed. If you take out loans in excess of $150K typically, you will need the option of a personal guarantee and security in the form of charges on assets.