FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Grange Small Business Loans
Tell me what you think of the Grange Small Business Loans
Grange unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional business loan?
Apply for your Small Business Loan in under 10 minutes by phone. You will receive an instant response and funds may be on your account within 24 hours. Traditional company loans are based on an annual interest rate together with additional fees and charges. Our business loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including the interest, fees and charges. This is then broken down into either weekly or daily payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business need, such as cash flow management, company improvements, advertising to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Grange Business Loans
What is the Larger Grange Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
This 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 be eligible for a loan in this amount, your business needs to be in operation for at least 3 years and have an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used to fund almost any company use, including company renovations, purchase of inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This can be done in the form of a charge against assets, and may include registering this with the PPSR or filing as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature, rather than specifying security over an asset. The person who signs the ensure is personally liable in the event that the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR permits the priority of personal property assigned according to the date the registration of a security interest.
An affidavit is an official document lodged to offer notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250K we can offer an initial pre-approval to smooth out the process. We might be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being questions. It’s in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you receive could be subject to different conditions.
Application process
Can I be eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a couple minutes, and a dedicated company lending specialist will call you to guide you through the process.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent twelve month bank accounts, the IRD statements and the last two years’ finalised financial statements, plus interim financials from the current financial year including Aged Payables, Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we typically offer an answer in just one hour if you make your application during standard company hours and allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we will be able to provide an answer in just the span of one business day.
For the Larger Business Loan ($100K to $500K) we may be able to provide you with a conditional pre-approval within about six hours. After you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain transactions have received approval within less than 24 hours.
The quickest method would be to ensure you apply during standard business hours and let us use the advance bank verification to confirm your bank details online. If you decide to upload duplicates of your banking statements it can take 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 – as long as you apply in normal business timings and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll offer a decision within 1 business day.
For Larger Business Loans ($100K and up) we might be in a position to provide you with conditional pre-approval within about six hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Certain offers have been approved in 24 hours.
The fastest method can be make sure you apply during normal business hours. Also, allow us to use the sophisticated bank verification to instantly confirm your bank details online. If you send us copies of your bank statements, it can take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a specific amount we will consider a number of aspects to determine how much we can lend you well-being that is your company and the amount of payments your business can afford. The total amount of your loan will be contingent on the specifics for your business.
When you make an application for a set amount, we will consider a number of factors to determine the health of the business as well as the amount of repayments your company will be able to support. The total amount of the loan will be determined by the specific circumstances that are unique to your company.
Fees & repayments
How do you charge for the cost of a company loan?
When you request business loans with us business loan, we’ll assess the risk assessment that you have for your business and offer you with a customised proposal that includes the amount of the loan, the duration and the interest rates. This company loan is a loan that is priced upfront therefore you will be aware of the total amount you will have to pay, including charges or interest.
What determines the amount I’m charged?
Business loan interest rates depend on several factors like the amount of money that is borrowed, what business assets the money are used to purchase in addition to the industry that the business operates in, the long the business has been running as well as how long the company has enough cash flow to fund the loan, and general health or creditworthiness of the company.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll know precisely what it is that you need to pay and when, right from day one. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We don’t charge an application fee. You can request a credit loan with without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You can repay the entire amount of your loan in full at any time.
If you decide to take this route, please talk to one of our helpful business lending specialists. They will provide you with the details of your repayment along with an early payout estimate. This will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout plus 1.5% of the remaining principal and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear the ways we gather the information we collect, use, share and secure your information, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We employ a highly sophisticated bank verification system to immediately verify your bank account information online to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner utilises assets they own to obtain a loan. The asset can be an asset belonging to the personal, like the family home or a company property like a truck or piece or equipment.
The majority of the lenders even the largest banks, are inclined to secure loans against assets. If you’re struggling to pay back the loan, the asset could be taken over by the lender. In essence it is an opportunity to secure new financing by using the worth of the asset you already own.
What do I require security to secure a business loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. require the personal guarantee. So long as you comply with your loan obligations (as detailed in the loan contract) the security of assets is not required. If you take out loans in excess of $150,000 generally, there is the option of a personal ensure and security in the form charges on assets.