FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Grenada North Small Business Loans
Let me know how you are able to avail the Grenada North Small Business Loans
Grenada North unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow-friendly repayments which can be made 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 company loans are based on an annual interest rate as well as other fees and charges. This business loan is a pre-paid loan therefore you’ll know in advance the total amount due, which includes any fees, charges or charges. Then, it is divided into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company need, such as managing cash flows, company renovations, marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
Concerning Larger Grenada North Business Loans
What is the Larger Grenada North Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated 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, your business needs to have been in operation for at least 3 years, and have an annual income of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have 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 Business Loan can be used for almost any company purpose including business renovations, to purchase equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is as a result of an charge against assets and can include registration through the PPSR or the registration of as a caveat.
A director’s or personal ensure is a promise to repay credit that is generally based rather than specifying security over an asset. The person signing the guarantee is personally liable in the event that the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR grants the priority of personal property assigned according to the date the security interest was registered.
Caveats are legal document filed to provide the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger company loans of more than $250K, we may offer an initial pre-approval to simplify the process. We might be able to make this decision without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial well-being checks. It’s not an offer or guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer that you are offered could be on different conditions.
Application process
Are I eligible for funding?
You may be eligible for a 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)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Complete the online form within a couple minutes, and a dedicated company loan specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer within one hour, provided you make your application at standard company hours and permit us to utilise the bank verification system link to instantly verify your bank details online. If you want to upload copies of your bank statements we can offer the decision in as little as an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be capable of offer the conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some offers have been approved in just 24 hours.
The fastest way would be to make sure you apply during normal business hours. Also, let us use the advanced bank verification system link to verify your bank information online. If you choose to send us duplicates of your banking statement, it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we usually offer an answer within one hour – as long as you submit your request in standard business hours and permit us to use the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statement, we’ll offer a decision in just 1 business day.
For Larger Business Loans ($100K and up) We may be capable of provide the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this can be faster depending upon the circumstances for each application. Some deals have been approved in the space of 24 hours.
The fastest method would be to ensure you apply during standard business hours and let us use the advanced bank verification system link to instantly verify your bank information online. If you upload the copies of bank statements it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we take into consideration a range of factors that determine the health of the business and the amount of repayments your company can support. The amount you receive from your loan will depend on the specific circumstances the business.
When you apply for a certain amount, we consider a variety of factors to determine how much we can lend you such as health for your business and the amount of the repayments your business can afford. The amount you receive from your loan will be determined by the particulars for your business.
Fees & repayments
How much do you charge for an company loan?
If you decide to make an application for the company credit, we’ll assess the risk profile that you have for your business and offer you with a customised offer that includes loan amount, term and the interest rates. This business loan is a loan that is priced upfront and you’ll be aware of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Interest rates for business loans rates depend on a variety of factors including the amount borrowed, the company assets the funds will be used for and the sector the company operates in, the long the company is in operation for, how long the business has enough cash flow to fund the loan, as well as the general health or creditworthiness of the company.
What are the cost?
There are no hidden costs for our business loans. You’ll know precisely how much you be required to pay, and when, from the very first day. There’s no compounding and no additional fees (as long as you make your payments on time).
We do not charge an application fee. You can request a credit loan no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay out the loan early?
You can decide to repay the total amount of your advance loan at any time.
If you are deciding to do this please speak to our friendly business loans experts. The experts will provide you with repayment details and an early payout figure. The figure will be calculated as the total of the principal balance plus any accrued interest as of the date of early payout and 1.5 percent of the principal balance plus any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing how we collect, use, exchange and protect your information, is of paramount importance and is a crucial 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 techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify the bank account details online so we can offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from assets they own to obtain the funds for a loan. The asset may be an asset belonging to the personal, like the family home or it could be a company asset like a truck or other piece of machinery.
The vast majority of lenders, not just the major banks, prefer to secure loans against assets. If you have trouble paying back the loan, your assets could be sold by the lender. In essence, it is an opportunity to secure new financing by taking advantage of the value of what you already have.
Should I need security to secure a company loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. need a personal guarantee. In the event that you fulfill your loan obligations (as stipulated in your loan contract document), asset security is not required. For loans of over $150K generally, you are able to get personal ensure and security in the form a charge over assets.