FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Graceville Small Business Loans
Tell me more about Graceville Small Business Loans
Graceville unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
You can apply to your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and have the funds in your account within 24 hours. Traditional business loans are based on an annual interest rate plus other fees and charges. Our company loan is a loan that is priced upfront so you will know ahead of time the total amount due, which includes any fees, charges or charges. This is then broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company purpose including the management of cash flow, company remodels and marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
About larger Graceville Business Loans
What is the Larger Graceville Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been operating for at least three years and generate an annual revenue of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be used for?
A larger company loan can be used for almost all business need, including company improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This can be done by taking a charge against assets and can include the registration of this on the PPSR or registering a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally in nature rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally liable if the company 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 lists security interests that are registered in respect of personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be granted in accordance with the date on which a security interest was registered.
An affidavit is an official document that is filed to offer the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting larger business loans that exceeds $250,000 it is possible to offer a preliminary pre-approval to help simplify the process. We could be able to do this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial health questions. It is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you receive could be subject to different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a couple minutes, and an experienced company expert in lending will call you to guide you through the process.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement and the last two years’ finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we typically offer an answer in just one hour, provided you apply within standard business times and let us use the advanced 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 a decision within just the span of one company day.
For the Larger Business Loan ($100K to $500K) we may be capable of provide the conditional pre-approval in about six hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved in just 24 hours.
The fastest way is to make sure you apply during standard company hours. You can also allow us to use our advance bank verification link to confirm your bank details online. If you decide to send us the copies of bank statements , it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour if you submit your request during standard business timings and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements, we are able to offer the decision in just the span of one business day.
For Larger Business Loans ($100K to $500K) we might be capable of offer you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The quickest method can be ensure you apply during standard business hours. You can also permit us to use the advance bank verification to confirm your bank details online. If you upload the copies of bank accounts, it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of elements for determining what is the well-being of your company and the extent of payments your business will be able to support. The amount you receive from your loan will depend on the specifics for your company.
When you submit an application for a set amount, we consider a variety of variables to assess how much we can lend you such as health of the 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 specifics the company.
Fees & repayments
How do you charge for the cost of a business loan?
When you request our business financing, we’ll assess the risk assessment of your business and offer an individualised offer, including the amount of the loan, the duration and interest rates. It is a business loan is an upfront cost loan which means you know in advance the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I’m charged?
Business loan interest rates depend on a variety of factors including the amount borrowed, the company assets the funds are used to purchase, the industry the company is operating in, how long the business has been in operation, what percentage of the business has sufficient cash flow to fund the loan, as well as the general health as well as creditworthiness business.
What are the cost?
There are no hidden costs for our business loans, and you’ll be aware of the amount you’ll be required to pay, and when, right from the very first day. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Do I have the option of paying off the loan in advance?
You can decide to repay all of your loan at any point in time.
If you decide to do this please talk to one of our helpful company credit professionals. We will provide you with the details of your repayment and an early payment figure. This is calculated as the total of the remaining principal amount and the accrued interest up to the time of early payment in addition to 1.5% of the principal remaining plus any outstanding fees.
What are the repayment methods?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being upfront about how we collect, use, exchange and protect your information, is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system to immediately verify your bank account information online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner utilises the assets they have to obtain the funding. The asset can be an asset belonging to the personal, like the family home or a business asset like a truck as well as a piece of machine.
The majority of lending institutions, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset could be transferred to the lender. In essence, it is an opportunity to secure additional financing using the worth of the asset you already own.
Are I require security for a company loan?
Up to $150K in loans the requirement for asset security is not required upfront to access the money, however we require a personal guarantee. need a personal guarantee. So long as you comply with your loan commitments (as detailed in your loan contract document) the security of assets will never be needed. For loans of over $150K generally there is an individual ensure and security is provided in the form of a charge over assets.