FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Grenada North Small Business Loans
Tell me how you can avail the Grenada North Small Business Loans
Grenada North unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from an traditional business loan?
The application to get the Small Business Loan in under 10 minutes on the internet or over the phone, receive an instant response and the money could be available in just 24 hours. Traditional business loans reference an annual interest rate along with other charges and fees. This business loan is a pre-paid loan which means you be aware of the total amount due, which includes any interest, fees or charges. Then, it is divided into weekly or daily installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company purpose including the management of cash flow, company remodeling, marketing, to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal reasons.
About Larger Grenada North Business Loans
What is the Larger Grenada North Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the company needs to have been trading for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A larger company loan can be used for almost any business use, including business renovations, to purchase new equipment or inventory or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This is by way of charge against assets, and may include registration on the PPSR or registering as a caveat.
A director’s or personal ensure is a promise to repay a loan which is general in nature, rather than defining the security for a particular asset. The person signing the ensure is personally liable in the event that the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be granted in accordance with the date on which a security interest that is registered.
Caveats are legal document lodged to provide notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan of $250K or more it is possible to offer a preliminary pre-approval to help ease the process. It is possible to get this done without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial health checks. It is not an offer of credit or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you may receive may have different terms.
Can I be eligible for funding?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a couple minutes, and an experienced company expert in lending will be in touch to help you.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Application details including credit consent, 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) We can usually provide a response in one hour, provided you submit your request within standard company timings and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements we can offer an answer in as little as one business day.
For Larger Business Loans ($100K or more) we may be in a position to offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain deals have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during standard company hours and allow us to use our advance bank verification to verify your bank account information online. If you opt to send us copies of your bank statements it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we usually offer a response in one hour – as long as you apply during normal business timings and allow us to use the bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statements we can provide the decision in just an business day.
For Larger Business Loans ($100K up to $500,000) we might be in a position to provide you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Some agreements have been approved in the space of 24 hours.
The fastest way would be to make sure you apply during normal business hours, and permit us to use the modern bank verification link to instantly verify your bank account information online. If you decide to upload the copies of bank statements, it will take a little longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a certain amount we take into consideration a range of factors in order to assess your well-being for your business as well as the amount of payments your business can afford. The total amount of your loan will depend on the particular circumstances that are unique to your company.
When you make an application for a set amount, we consider a variety of factors to determine how much we can lend you such as well-being for your business and the level of the repayments your business will be able to support. The total amount of your loan will be determined by the specifics of your business.
Fees & repayments
What is the cost for a business loan?
When you make an application for the business loans, we will assess the risk assessment for your business and provide an individualised offer, including the amount of the loan, the duration and interest rates. The business loan is an upfront cost loan which means you be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I’m charged?
Business loan interest rates vary due to factors like the amount of money borrowed, what company assets the funds are used to purchase and the sector the company is operating in, how long the business has been in operation as well as in the event that the business has sufficient cash flow to support the loan, as well as the general health as well as creditworthiness business.
What are the cost?
There are no hidden fees for our business loans. You’ll know precisely how much you’ll be required to pay, and when, right from the very first day. There’s not any compounding interest and no extra fees (as long as you make your payments on time).
We do not charge an Application Fee. You can get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan earlier?
You can choose to repay the total amount of your loan in full at any time.
If you choose to do this please speak to our friendly company credit specialists. They’ll provide you with details on repayment as well as an early payout amount. The figure will be calculated as the total of the principal remaining plus any accrued interest as of the time of early payment, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work your cash flow schedule, we offer repayments either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being transparent about the ways we gather information, use it, and exchange it, as well as secure your information, is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We employ a highly sophisticated banking verification system to instantly confirm your bank account information online. This allows us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term “asset-based” refers to borrowing where the company owner uses the assets they have to secure the loan. The asset could be an individual property, such as the family home or a company asset such as a truck or piece or equipment.
The majority of the lenders even the banks with the biggest size, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then the asset could be offered for sale by the lender. In essence, it is means of securing new funding using the worth of the asset you already have.
What do I need security for a business loan?
For loans of up to $150K, it is not necessary to secure assets before you are able to access the money however, we require a personal guarantee. require the personal guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract document) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150K generally, there is an individual ensure and security in the form the charge of assets.