FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Grose Vale Small Business Loans
Tell me how you are able to avail the Grose Vale Small Business Loans
Grose Vale unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
You can apply to the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and have the funds in your account within 24 hours. Traditional company loans are based on an annual interest rate as well as other fees and charges. The company loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any interest, fees or charges. This is then broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as managing cash flows, company remodeling, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Grose Vale Business Loans
What is the Larger Grose Vale Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to be in operation for at least 3 years and generate an annual revenue of $700K. The applicant must also be 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 to prove at least 12 months of trading.
How can the funds be utilised?
A Larger Business Loan can be used to fund almost all business purpose including business renovations, to purchase new equipment or inventory, as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. It is usually as a result of an charge over assets, and may include the registration of this on the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature, rather than stating the security of a specific asset. The person signing the guarantee is personally accountable if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR permits preference over private property assigned depending on the date that a registration of a security interest.
A caveat is a legal document filed to offer the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250K it is possible to offer an initial pre-approval to make the process. We might be able to apply for this without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial health checks. It is neither an offer nor a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you are offered could have different terms.
The application process
Do I have the right to receive funds?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Complete the online form within a couple minutes, and a dedicated business credit specialist will be in touch to guide you.
To apply for up $100,000 you’ll require identification details (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we usually provide an answer within an hour, provided you apply during quality company hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer the decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K and up) we might be likely to provide the conditional pre-approval in about six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some deals have been approved in 24 hours.
The fastest way for you to apply is ensure you apply during normal company hours. Also, permit us to use the advance bank verification to instantly verify your bank information online. If you decide to upload copies of your bank statements , it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer within an hour – as long as you apply during standard business timings and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements we can provide the decision within the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we may be capable of offer the conditional pre-approval in about 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Certain offers have been approved in 24 hours.
The most efficient method can be make sure you apply during normal business hours and let us use the sophisticated bank verification link to instantly verify your bank account information online. If you opt to upload copies of your bank statement, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a specific amount we will consider a number of variables in order to assess what is the health of the business and the amount of the repayments your company is able to afford. The amount you receive from your loan will depend on the specific circumstances of your company.
If you apply for a particular amount, we take into consideration a variety of variables to determine your health that is your business and the amount of the repayments your business can afford. The total amount of your loan will depend on the particulars the company.
Fees & repayments
How much should you charge for a company loan?
If you decide to make an application for one of our company credit, we will assess the risk profile of your business and offer an individualised offer including loan amount, term and the interest rates. It is a company loan is a loan that is priced upfront and you’ll know the exact amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates vary due to factors like the amount of money of money borrowed, the business assets the money will be used for as well as the field the business is in, how long the company has been running for, how long the business has sufficient cash flow to pay for the loan, and general well-being or creditworthiness of the business.
What are the cost?
There are no hidden fees with our company loans. You’ll know precisely what you’ll need to pay and at what time, from day one. There’s no compounding interest and no additional fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan earlier?
You can repay the total amount of your loan at any point in time.
If you are deciding to do this please call our helpful business credit experts. They’ll offer you with details for repayment and an early payout figure. This is calculated as the total of the remaining principal amount plus any accrued interest as of the time of the early payout in addition to 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss payments and to work your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about the ways we gather data, process, exchange and safeguard your data, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We utilise a sophisticated bank verification system that allows you to immediately confirm your bank account information online, allowing us to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner uses an asset they own to make the funds for a loan. The asset can be either an asset belonging to the personal, like the family home or a business asset such as a truck or piece or equipment.
The majority of lending institutions, even the largest banks, are inclined to guarantee loans against an asset. If you are having difficulty paying back the loan, your assets could be sold by the lender. In essence it is means of securing new financing using the value of what you already have.
Should I require security for an business loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access However, we do need the personal guarantee. So long as you comply with your loan obligations (as specified in your loan contract document) Asset security will never be needed. For loans over $150K generally, you can get personal ensure and security is provided in the form of the charge of assets.