Legal
Business Purpose Declaration
Every GreyRok facility is business-purpose finance. Before settlement you confirm that in writing — here is exactly what you are declaring, and why it matters.
GreyRok Capital lends to companies and sole traders for business purposes only. We do not provide consumer credit, and we are not able to fund personal, domestic or household spending — whatever the security offered.
What this declaration is
A Business Purpose Declaration is a short written statement, signed by the borrower (and each guarantor where relevant), confirming that the credit is applied for wholly or predominantly for business purposes.
It is a standard document in commercial lending. It records the basis on which we assessed and priced the facility, and it is a condition of settlement for every GreyRok loan.
Why it matters
Consumer credit in Australia is regulated by the National Consumer Credit Protection Act 2009 (Cth). That legislation, and the protections that come with it, apply to credit provided wholly or predominantly for personal, domestic or household purposes.
Our facilities are for business purposes, so they sit outside that regime. The declaration is how that is documented. Its practical effect is that the consumer credit protections under the Act — including responsible lending obligations and access to consumer credit hardship provisions — do not apply to your facility.
Worth knowing before you sign
A declaration is not a formality you can sign around a personal purpose. Making a declaration you know to be untrue — or that you have no reasonable basis for — can have serious consequences, and we may decline or unwind a facility where the stated purpose does not hold up.
The declaration you sign
The wording below is the declaration included in our loan documents. The version you sign will name the borrower, the facility and the date.
Declaration
I/We declare that the credit to be provided to me/us by GreyRok Capital is to be applied wholly or predominantly for business purposes, or for investment purposes other than investment in residential property.
I/We understand that:
- by signing this declaration, I/we may lose the protections given to consumers under the National Consumer Credit Protection Act 2009 (Cth);
- I/we should not sign this declaration if the credit is to be used wholly or predominantly for personal, domestic or household purposes; and
- the statements made in this declaration are true and correct, and GreyRok Capital is relying on them in deciding whether to provide the credit.
Signature of borrower / director
Full name and date
Sample wording shown for information. Do not rely on this page as your executed declaration — the operative version is the one in your loan documents.
What counts as a business purpose
The test is what the money is actually used for, not what the business is called or what security is offered.
- Stock, materials or inventory
- Plant, equipment or vehicles used in the business
- Wages, superannuation or contractor payments
- ATO and other business tax obligations
- Supplier payments and trade terms
- Fit-out, premises costs or business relocation
- Bridging a receivables gap or funding a contract
- Marketing, hiring or another growth project
- A home deposit, renovation or mortgage arrears
- Paying down personal credit cards or personal loans
- A private vehicle used mainly for personal travel
- School fees, medical costs or family expenses
- Holidays, weddings or other personal spending
- Investment in residential property
- Any purpose you would describe as personal, domestic or household
Mixed-purpose borrowing
The declaration uses the words “wholly or predominantly”. If part of the facility funds something personal, the question is whether the business use is the predominant one — measured by the amount applied to each purpose, not by how you describe the facility.
If you are unsure how your intended use is characterised, tell us before you sign. It is a normal conversation to have, and it is far better to have it early than to discover a mismatch later.
When we ask for it
- 01
At application
You tell us the purpose of the finance and tick a declaration that the facility is for business purposes. Nothing is signed at this point. - 02
With your offer
If we approve the facility, the declaration is included in the document pack alongside the loan agreement and the fixed repayment schedule. - 03
Before settlement
The declaration is signed by the borrower and each guarantor. We cannot fund the facility until it is returned.
If your plans change
If the purpose of the finance changes materially between application and settlement — a different project, a different amount, or a use that is no longer clearly for the business — let us know before you draw the funds. We may need to reassess, restructure, or in some cases decline the facility.
After settlement, using the funds for a personal purpose does not change the terms of the facility, but it may be a breach of the loan agreement.
Questions
This page is general information, not legal or financial advice. If you are uncertain whether your intended use is a business purpose, speak with your accountant or adviser, or call our credit team on 1300 070 666 and we will talk it through.