FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Grenada North Small Business Loans
Tell me more about Grenada North Small Business Loans
Grenada North unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
Apply to get your Small Business Loan in under 10 minutes by phone. You will receive a same day response and the money could be in your account in 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. We offer a business loan is a cash-based loan therefore you’ll know ahead of time the amount you will have to pay, including any interest, fees or charges. This is then broken down into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company need, such as cash flow management, business renovations, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal use.
About the 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 scheduled weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the company needs to have been operating for a minimum of 3 years and have an annual turnover of at least $700K. 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 to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A large business loan is a great option for almost every company need, including company renovations, to purchase new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. This can be done as a result of an charge over assets and can include registering this in the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature, rather than stipulating security over an 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 a central, national online register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted according to the date the registration of a security interest.
Caveats are legal form of document to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan of more than $250K it’s possible to offer an initial pre-approval to ease the process. We might be able to get this done without credit checks and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial health checks. It is neither an offer nor a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $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 credit specialist will contact you to help you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s License) as well as a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often offer an answer within one hour, provided you submit your request within quality business hours and allow us to utilise the bank verification system link to instantly verify your bank information online. If you decide to upload copies of your banking statements , we are able to offer a decision in just one company day.
For the Larger Business Loan ($100K to $500K) we may be in a position to offer you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Certain agreements have been approved within just 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours, and let us use the advance bank verification to instantly verify your bank information online. If you opt to send us the copies of bank accounts, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) We can usually provide an answer within an hour – provided you apply within standard business times and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements, we are able to provide an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) we could be able to provide you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Some transactions have received approval within just 24 hours.
The fastest way can be ensure you apply during normal business hours, and allow us to use the advance bank verification link to instantly verify your bank information online. If you choose to send us documents from your account accounts, 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 make an application for a particular amount, we will consider a number of aspects for determining your health that is your company and the amount of payments your business is able to afford. The amount you receive from the loan will be determined by the specifics for your business.
When you apply for a particular amount, we consider a variety of aspects to determine how much we can lend you such as well-being for your company and the level of the repayments your business is able to 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 the cost of a company loan?
When you apply for one of our business credit, we will assess the risk profile for your company and provide you with a customised offer, including the amount of loan, the term and interest rates. The business loan is an upfront priced loan which means you be aware in advance of the total amount payable including any charges or interest.
What is the factor that determines the price I am charged?
The interest rates on business loans rates depend on a variety of variables like the amount to be of money borrowed, the company assets the money are used to purchase and the sector the company operates in, the long the company is in operation, in the event that the business has enough cash flow to cover the loan, and overall well-being or financial standing of the business.
What are the cost?
There are no hidden fees for our business loans. You’ll know precisely what it is that you need to pay, and when, right from the day you sign up. There’s no compounding interest, and no extra fees (as as long as you pay your payments in time).
We do not charge an application fee. You are able to apply for a loan no cost upfront or any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can decide to repay the entire amount of your advance loan at any time.
If you do decide to do this please speak to our friendly business lending experts. They will offer you with the details of your repayment and an early payout figure. The figure will be calculated as the sum of the principal amount remaining and any accrued interest at the date of early payout plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear the ways we gather data, process, exchange and safeguard your data, is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to security for our clients and security. We employ an exceptionally sophisticated banking verification system to instantly verify your bank account details online to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of the assets they have to get the loan. The asset can be a personal asset like the family home, or it could be a business asset such as a truck or piece or equipment.
The majority of lending institutions, even the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan, your assets could be offered for sale by the lender. In essence, it’s means of securing additional financing using the worth of the asset you already have.
Do I need security for a company loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access however, we do require an individual guarantee. If you adhere to the terms of your loan (as stipulated in your loan contract document) Asset security will never be required. For loans of over $150,000 generally there is an individual guarantee and security in the form of the charge of assets.