FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ascot Small Business Loans
Let me know about the Ascot Small Business Loans
Ascot unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
You can apply to this Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and have the funds on your account within 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. Our business loan is a cash-based loan therefore you’ll know ahead of time the total amount payable including any fees, charges or charges. Then, it is divided into weekly or daily installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company need, such as the management of cash flow, company renovations, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan is not available to fund personal expenses.
About Larger Ascot Business Loans
What is the Larger Ascot Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be trading for at least 3 years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Larger Business Loan can be used to fund almost any business use, including company renovations, purchase of new equipment or inventory for 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. It’s in the form of a charge on assets, which could also include registering this on the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is general in nature, rather than stating security over a particular asset. The person who is signing the guarantee is personally responsible if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR gives priority over personal property to be granted according to the date a security interest that is registered.
Caveats are legal document lodged to offer the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250,000 we can offer an initial pre-approval that will help simplify the process. We might be able to apply for this without a credit check and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial well-being checks. It is 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 that you may receive may be based on different terms.
The application process
Can I be eligible for funding?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Complete the online form in few minutes and an experienced company expert in lending will be in touch to help you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent, 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we usually provide an answer within one hour, provided you make your application in quality business times and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statements , we will be able to provide a decision in as little as one business day.
For the Larger Business Loan ($100K and up) we may be in a position to provide the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The most effective method can be ensure you apply during standard business hours, and permit us to use the advance bank verification to verify your bank account information online. If you decide to upload the copies of bank statements , it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer within an hour – as long as you make your application in standard business timings and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements, we will be able to provide an answer within 1 business day.
For Larger Business Loans ($100K up to $500,000) we might be able to offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain agreements have been approved within less than 24 hours.
The fastest method is to make sure you apply during normal business hours. You can also permit us to use the advance bank verification link to confirm your bank details online. If you opt to upload the copies of bank statements it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of aspects in order to assess how much we can lend you health of the business as well as the amount of repayments that your company will be able to support. The total amount of your loan will depend on the specific circumstances of your business.
If you apply for a certain amount, we take into consideration a variety of variables to assess your well-being that is your business and the extent of payments your company can afford. The amount you receive from your loan will be contingent on the particulars the company.
Fees & repayments
How much do you charge for a business loan?
If you decide to request business loans with us business credit, we’ll assess the risk assessment the business and offer you with a tailored proposal that includes the amount of the loan, the duration and the interest rates. This company loan is a loan that is priced upfront and you’ll be aware of the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I am charged?
Business loan interest rates vary due to factors like the amount of money that is borrowed, what business assets the funds will be used for and the sector the business operates in, how long the business has been operating, how long the business has sufficient cash flow to cover the loan, and also the overall health or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our company loans, and you’ll know precisely what you need to pay, and when, right from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You can make an application for loans with with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay out the loan early?
You can repay all of your loan in full at any time.
If you choose to take this route, please speak to our friendly company credit specialists. They’ll provide you with the details of your repayment as well as an early payout amount. This will be calculated as the sum of the principal remaining and the accrued interest up to the time of early payment in addition to 1.5 percent of the principal balance as well as any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payment dates and to align your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect information, use it, and exchange it, as well as protect your information, is of huge importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We use an advanced bank verification system to immediately verify the bank account details online, allowing us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner makes use of an asset that they own to obtain the funding. The asset may be a personal asset like the family home or an company asset such as a truck or piece or equipment.
The majority of the lenders including the major banks, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, the asset could be taken over by the lender. In essence it is a way of securing new financing taking advantage of the value of what you already own.
Should I need security to secure a business loan?
For loans of up to $150,000, the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need a personal guarantee. If you adhere to your loan commitments (as stipulated in your loan contract) the security of assets will never be required. For loans over $150K generally, there is personal ensure and security is provided in the form of a charge over assets.