FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Grey Lynn Small Business Loans
Let me know how you can avail the Grey Lynn Small Business Loans
Grey Lynn unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an traditional business loan?
It is possible to apply to the Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and have the funds on your account within 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. We offer a company loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including any fees, charges or charges. This is then divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every company reason, such as control of cash flow company renovations, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
About larger Grey Lynn Business Loans
What is the Larger Grey Lynn 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 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Do I qualify 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, and have an annual income of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have 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 is a great option for almost all business use, including company improvements, purchasing equipment or inventory for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. This can be done in the form of a charge over assets, and could include registering this through the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a promise to repay a loan which is general in nature rather than stating security over a particular asset. The person who signs the ensure is personally responsible if the company lender is not able 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 which are registered with respect to personal property (including items or assets). The PPSR allows priority over personal property to be granted depending on the date that a security interest has been registered.
Caveats are legal document that is filed to offer notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250K, we may offer an initial pre-approval to simplify the process. It is possible to make this decision without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial health checks. It is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be subject to different conditions.
Do I have the right to receive funds?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Complete the online form in few minutes and a dedicated company credit specialist will call you to assist you.
To apply for up to $100,000 you’ll need the right identification documents (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent as well as 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we usually offer an answer in just one hour if you submit your request in standard business time and permit us to use the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer a decision within just an business day.
For the Larger Business Loan ($100K or more) we may be capable of provide you with conditional pre-approval within 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 circumstances of each application. Some transactions have received approval within the space of 24 hours.
The fastest way can be ensure you apply during standard company hours. You can also permit us to use the advance bank verification to verify your bank information online. If you choose to send us duplicates of your banking statements it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer within an hour if you make your application at normal business time and allow us to use the bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements, we’ll be able to provide an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of offer you with conditional pre-approval in around 6 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. Some offers have been approved within less than 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours, and permit us to use the advanced bank verification system link to instantly check your bank’s information online. If you opt to send us documents from your account statement, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we take into consideration a range of variables for determining what is the well-being for your company and the extent of repayments your company can support. The total amount of your loan will depend on the specifics the company.
When you apply for a certain amount, we will consider a number of aspects to assess your well-being that is your business as well as the amount of repayments that your business can afford. The amount you receive from your loan will be contingent on the particulars that are unique to your company.
Fees & repayments
How do you charge for a business loan?
If you decide to apply for one of our company credit, we will assess the risk assessment that you have for your company and offer you with a customised offer including the loan amount, the terms and the interest rates. The business loan is an upfront-priced loan and you’ll be aware of the total amount to be paid, including any charges or interest.
What determines the amount I am charged?
Business loan interest rates differ based on various variables like the amount to be of money borrowed, the company assets the funds are used to purchase and the sector the business operates in, the long the company is in operation and how long the business has enough cash flow to support the loan, and the overall health or creditworthiness of the business.
What are the charges?
There aren’t any hidden costs with our company loans. You’ll know exactly how much you need to pay, and when, 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 don’t charge an Application Fee. You can apply for a loan with without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan in advance?
You can choose to repay the entire amount of your loan at any point in time.
If you decide to take this route, please call our helpful business credit professionals. We will offer you with details for repayment as well as an early payout amount. It will be calculated using the sum of the principal remaining and accrued interest to the time of early payment, plus 1.5% of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To ensure you do not miss due dates and also to be in line your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear the ways we gather the information we collect, use, share and protect your information, is crucial and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We make use of an advanced banking verification system to immediately verify your bank account details online to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner utilises an asset that they own to get the funding. The asset may be a personal asset like the family home, or it could be a business asset such as a truck as well as a piece of machine.
The vast majority of lenders, including the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan, then the asset might be sold by the lender. In essence, it’s the process of securing new financing taking advantage of the value of what you already have.
Should I need security to get an business loan?
Up to $150,000 in loans there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. require a personal guarantee. If you adhere to the loan terms (as stated in your loan contract document) Asset security will never be needed. If you take out loans in excess of $150,000 generally, you can get an individual guarantee and security is provided in the form of the charge of assets.