FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Carole Park Small Business Loans
Tell me more about Carole Park Small Business Loans
Carole Park unsecured loans offers amounts of 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 the Unsecured Loan different from an traditional company loan?
The application for this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and the money could be on your account within 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. The company loan is an upfront priced loan 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 weekly or daily payment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly every business use, including cash flow management, business improvements, advertising, to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Carole Park Business Loans
What is the Larger Carole Park Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to be operating for at least three years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used for nearly all company purpose including company renovations, to purchase equipment or inventory, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. It is usually by taking a charge against assets, which could also include registering this through the PPSR or filing a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is generally based rather than defining security over an asset. The person signing the ensure is personally liable in the event that the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR grants preference over private property assigned in accordance with the date on which a registration of a security interest.
Caveats are legal document filed to provide the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250K we can offer an initial pre-approval that will help simplify the process. It is possible to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being questions. This is not an offer or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you receive could have different terms.
The application process
Are I eligible for funding?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in few minutes and an experienced business lending specialist will contact you to help you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent and 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we typically provide an answer within an hour – as long as you make your application at quality business hours and you allow us to utilise 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 an answer in as little as the span of one business day.
For the Larger Business Loan ($100K and up) we could be able to provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved within 24 hours.
The quickest method is to ensure you apply during standard company hours and let us use the modern bank verification link to verify your bank account information online. If you send us the copies of bank statements it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer in just one hour – provided you apply within standard business hours and let us use the bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we are able to offer a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) We may be able to provide you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The quickest method can be make sure you apply during standard business hours. Also, permit us to use the advance bank verification link to confirm your bank details online. If you choose to upload the copies of bank statements, it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of variables for determining what is the well-being for your company as well as the amount of repayments that your company can support. The total amount of your loan will be contingent on the specifics for your company.
If you apply for a specific amount we consider a variety of variables to assess how much we can lend you such as well-being for your company and the extent of repayments your business can afford. The amount you receive from your loan will depend on the particulars for your business.
Fees & repayments
How do you charge for a business loan?
If you decide to make an application for one of our company financing, we’ll assess the risk profile that you have for your company and provide you with a customised offer that includes loan amount, term and interest rates. A business loan is an upfront priced loan so you will be aware in advance of the total amount payable including any interest rates, fees or charges.
What is the basis for the rate I’m charged?
Interest rates for business loans rates differ based on various factors including the amount that is borrowed, what company assets the funds will be used for in addition to the industry that the business operates in, how long the business has been running for, whether the company has sufficient cash flow to cover the loan, and the overall well-being and creditworthiness of the business.
What are the fees?
There aren’t any hidden costs for our company loans, and you’ll know exactly how much it is that you need to pay, and when, from the very first day. There’s no compounding interest and there are no additional charges (as long as you make your payments in time).
We do not charge an application fee. You can apply for a loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5% of the loan amount.
Can I repay the loan earlier?
You can choose to repay the entire amount of the advance loan at any time.
If you do decide to pursue this option, please speak to our friendly company credit specialists. They will offer you with repayment details along with an early payout estimate. This is calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payment and 1.5% of the remaining principal plus any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear how we collect information, use it, and exchange it, as well as ensure the security of your information is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We utilise a sophisticated banking verification system to instantly verify your bank account details online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner utilises assets they own to secure the funds for a loan. The asset may be an individual property, such as the family home or a company property like a truck as well as a piece of machine.
The majority of banks, even the big banks, tend to guarantee loans against assets. If you have trouble paying back the loan then your asset may be offered for sale by the lender. In essence, it is means of securing new funding using the value of what you already own.
Should I need security to get an business loan?
For loans of up to $150K, there is no requirement for asset security upfront to access the money however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan obligations (as stipulated in the loan contract) Asset security will never be required. For loans that exceed $150,000, generally, you are able to get the option of a personal ensure and security is provided in the form of a charge over assets.