FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Griffin Small Business Loans
Tell me more about Griffin Small Business Loans
Griffin unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from the traditional business loan?
The application to your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and funds may be available in just 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. This company loan is a pre-paid loan and you’ll be aware in advance of the amount you will have to pay, including the interest, fees and charges. This is then broken down into either weekly or daily repayment figure.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business reason, such as cash flow management, business improvements, advertising to purchase inventory, new equipment, as general working capital and much more. The loan cannot be used for personal use.
About the Larger Griffin Business Loans
What is the Larger Griffin Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been trading for at least 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be used for?
A Larger Business Loan can be used for almost every business use, including business remodeling, buying equipment or inventory, as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. This can be done in the form of a charge over assets, and may include registration in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature rather than defining security over an asset. The person who signs the ensure is personally responsible if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR gives preference over private property assigned according to the date a security interest was registered.
The caveat can be described as a formal document filed to provide the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan that is greater than $250K we can offer an initial pre-approval in order to ease the process. It is possible to get this done without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health checks. This is not an offer or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you may receive may be on different terms.
The application process
Do I have the right to receive funds?
You may apply for an company 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)
- must show at least six months of business (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Just complete the online application within a few minutes and an experienced company lending specialist will call you to assist you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent and 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we usually offer a response in one hour – as long as you make your application within standard business hours and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statement, we’ll offer a decision in just an business day.
For Larger Business Loans ($100K up to $500,000) we may be likely to provide the conditional pre-approval within 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 upon the circumstances for each application. Certain deals have been approved in less than 24 hours.
The fastest way would be to make sure you apply during standard business hours and allow us to use our advance bank verification link to verify your bank account information online. If you opt to upload copies of your bank statements it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within an hour – as long as you submit your request in normal business times and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statements we can provide the decision within an business day.
For Larger Business Loans ($100K up to $500,000) We may be in a position to provide you with a conditional pre-approval in about 6 hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain transactions have received approval within just 24 hours.
The most effective method is to make sure you apply during standard business hours. Also, allow us to use the advance bank verification link to verify your bank information online. If you upload duplicates of your banking statement, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount, we consider a variety of aspects that determine what is the health for your business and the level of repayments your company is able to afford. The amount you receive from your loan will depend on the specifics the business.
If you apply for a specific amount we consider a variety of aspects to determine how much we can lend you such as health of your business and the level of repayments your business will be able to support. The amount you receive from your loan will be contingent on the particulars the company.
Fees & repayments
What is the cost for an company loan?
When you request the business loan, we’ll assess the risk assessment that you have for your company and provide you with a tailored offer that includes the amount of loan, the term and the interest rates. This business loan is an upfront-priced loan and you’ll be aware of the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I am charged?
Interest rates for company loans rates differ based on various variables like the amount to be that is borrowed, what business assets the funds will be used for and the sector the company operates in, the long the company has been running and whether the business has enough cash flow to fund the loan, and the general well-being and creditworthiness of the business.
What are the fees?
There are no hidden costs for our business loans, and you’ll know precisely how much you be required to pay and when, starting from the day you sign up. There’s no compounding and the loan comes with no additional fees (as long as you make your payments in time).
We don’t charge an application fee. You are able to make an application for loans without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can choose to repay the entire amount of the loan early at any time.
If you do decide to pursue this option, please call our helpful business loan experts. They’ll offer you with details on repayment as well as an early payout amount. This is calculated as the total of the principal remaining and accrued interest to the time of early payment, plus 1.5 percent of the principal remaining as well as any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss payment dates and to align your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about the ways we gather, use, exchange and ensure the security of your information is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We make use of an advanced banking verification system to instantly confirm your bank account information online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner utilises an asset that they own to make a loan. The asset can be a personal asset like the family home, or an business property like a truck or piece or equipment.
The vast majority of the lenders including the major banks, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then the asset could be offered for sale by the lender. In essence, it is a way of securing additional financing making use of the value of what you already have.
Are I require security for a company loan?
For loans up to $150K the requirement for asset security is not required before you are able to access the money but we do need the personal guarantee. As long as you follow your loan commitments (as stipulated in your loan contract) Asset security is not required. If you take out loans in excess of $150K generally, you can get an individual ensure and security that is in the form a charge over assets.