FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Grey Lynn Small Business Loans
Let me know more about Grey Lynn Small Business Loans
Grey Lynn unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from the traditional company loan?
It is possible to apply to this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and funds may be available in just 24 hours. Traditional business loans are based on an annual rate of interest plus other fees and charges. Our business loan is an upfront priced loan therefore you’ll know in advance the total amount payable including any fees, charges or charges. Then, it is broken down into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business use, including cash flow management, business renovations, marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan is not available for personal use.
About Larger Grey Lynn Business Loans
What is the Larger Grey Lynn Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to have been operating for at least three years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can the funding be used for?
A large company loan can be used for almost all business purpose including company remodeling, buying 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 is secured?
Asset security is required to access funding over $150,000. It is usually by taking a charge against assets, and could include registering this with the PPSR or the registration of as a caveat.
A director’s or personal ensure is a promise to pay off a credit line that is generally based rather than stipulating the security of a specific asset. The person signing the ensure is personally liable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR allows preference over private property assigned in accordance with the date on which a registration of a security interest.
A caveat is a legal document that is filed to offer the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan of $250K or more we can offer an initial pre-approval in order to smooth out the process. It is possible to apply for this without a credit check and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial health questions. This is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you may receive may have different terms.
Do I qualify for funds?
You may apply for an business 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)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Complete the online form in few minutes and an experienced company credit specialist will call you to guide you through the process.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Information on the application including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we typically provide a response in one hour, provided you apply during quality company time and allow us to utilise the bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll provide an answer in just 1 business day.
For Larger Business Loans ($100K and up) we may be able to offer the conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The fastest way would be to ensure you apply during standard business hours. Also, permit us to use the modern bank verification to confirm your bank details online. If you choose to upload duplicates of your banking statement, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) We can usually provide an answer in just one hour, provided you make your application within normal business times and permit us to use the bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements we can provide a decision in just the span of one business day.
For Larger Business Loans ($100K or more) we might be likely to provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Certain agreements have been approved in 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours. Also, let us use the modern bank verification to verify your bank account information online. If you decide to send us the copies of bank statements it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount we take into consideration a range of elements that determine how much we can lend you health of your company and the level of payments your business can support. The amount you receive from the loan will be determined by the specific circumstances of your business.
When you apply for a certain amount, we look at a range of elements to determine the health of your company and the extent of repayments that your business is able to afford. The total amount of your loan will be contingent on the particular circumstances for your company.
Fees & repayments
How do you charge for an business loan?
If you decide to apply for the company credit, we will assess the risk assessment of your business and provide you with a customised proposal that includes the amount of the loan, the duration and interest rates. A business loan is an upfront cost loan and you’ll know the exact amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I pay?
The interest rates on company loans rates depend on a variety of variables like the amount to be that is borrowed, what business assets the funds will be used for and the sector the business is operating in, how long the company has been running and what percentage of the business has sufficient cash flow to cover the loan, and also the overall well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden costs with our business loans. You’ll know precisely what you’ll be required to pay and when, right from the day you sign up. There’s not any compounding interest and no extra fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan in advance?
You can decide to repay all of your advance loan at any time.
If you are deciding to pursue this option, please contact our helpful company credit specialists. They will offer you with details on repayment and an early payout figure. It will be calculated using the total of the principal remaining and the accrued interest up to the time of early payout, plus 1.5% of the principal balance as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow standard, we offer repayments either weekly or daily. They will be automatically deducted from the nominated business 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 crucial and an integral aspect 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 sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We utilise a sophisticated bank verification system that allows you to instantly verify the bank account details online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the company owner makes use of an asset they own to obtain the loan. The asset may be an individual asset, such as the family home or it could be a company asset such as a vehicle as well as a piece of machine.
The vast majority of the lenders even the banks with the biggest size, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, your assets could be taken over by the lender. In essence, it is an opportunity to secure new funding using the worth of the asset you already own.
Do I require security for an company loan?
Up to $150K in loans the requirement for asset security is not required prior to the loan’s access However, we require a personal guarantee. require an individual guarantee. In the event that you fulfill the terms of your loan (as stated in the loan contract) Asset security will never be required. If you take out loans in excess of $150,000 generally, you are able to get an individual ensure and security that is in the form a charge over assets.