FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Heritage Park Small Business Loans
Let me know how you are able to avail the Heritage Park Small Business Loans
Heritage Park unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from a traditional business loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and have the funds in your account within 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. Our business loan is a loan that is priced upfront therefore you’ll be aware of the total amount due, which includes the interest, fees and charges. This is then broken down into weekly or daily repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for almost any company need, such as managing cash flows, company improvements, advertising for purchasing inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal purposes.
Concerning Larger Heritage Park Business Loans
What is the Larger Heritage Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be operating for a minimum of 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can the funding be used for?
A Business Loan of a larger size can be used to fund almost all company need, including company remodeling, buying new equipment or inventory, as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This can be done by taking a charge against assets, and could include the registration of this through the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than stating security over a particular asset. The person who signs the guarantee is personally responsible if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a security interest was registered.
A caveat is a legal form of document to offer the legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250,000 it is possible to offer an initial pre-approval in order to smooth out the process. We may be able to make this decision without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial well-being checks. It’s in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer you might receive could be based on different conditions.
Application process
Do I qualify for funds?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a few minutes and a dedicated business lending specialist will call you to assist you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Information on the application including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we can often provide an answer within an hour, provided you make your application at standard company hours and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements , we will be able to offer the decision in as little as the span of one business day.
For the Larger Business Loan ($100K or more) we could be able to offer you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Certain deals have been approved in the space of 24 hours.
The quickest way to apply is to ensure you apply during standard company hours. Also, let us use the advance bank verification link to verify your bank information online. If you send us copies of your bank accounts, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we usually offer a response in one hour if you make your application in standard business timings and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll provide an answer in as little as an business day.
For the Larger Business Loans ($100K up to $500,000) we might be in a position to offer you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain offers have been approved in less than 24 hours.
The quickest method can be ensure you apply during normal business hours. Also, allow us to use the advance bank verification link to check your bank’s information online. If you upload duplicates of your banking statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of elements in order to assess what is the health for your business and the amount of repayments your company can support. The amount you receive from your loan will be contingent on the specifics the business.
When you make an application for a particular amount, we consider a variety of factors to assess the well-being that is your company and the level of repayments that your business can support. The total amount of your loan will depend on the particular circumstances the business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you request business loans with us company credit, we will assess the risk assessment of your company and provide an individualised offer including the amount of loan, the term and the interest rates. It is a business loan is a loan that is priced upfront and you’ll know the exact amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I will be charged?
The interest rates on company loans rates depend on several factors including the amount borrowed, what company assets the money will be used for as well as the field the company is operating in, how long the company is in operation and in the event that the company has enough cash flow to cover the loan, and the general well-being and creditworthiness of the company.
What are the charges?
There are no hidden fees with our business loans, and you’ll know precisely what you be required to pay and at what time, from the very first day. There’s no compounding and no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to apply for a loan with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of your loan at any point in time.
If you do decide to do this please talk to one of our helpful business credit experts. We will offer you with repayment details and an early payout figure. This is calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payout, plus 1.5 percent of the principal remaining plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect the information we collect, use, share and safeguard your data, is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We use an advanced bank verification system that allows you to instantly verify your bank account information online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner borrows from assets they own to obtain the funding. The asset could be an individual property, such as the family home, or it could be a business asset like a truck or other piece of machinery.
The majority of lending institutions, not just the largest banks, are inclined to make loans secured by assets. If you are having difficulty paying back the loan, then the asset could be sold by the lender. In essence, it’s an opportunity to secure additional financing using the worth of the asset you already own.
Should I need security to get an business loan?
For loans up to $150K no asset security is required upfront to access the money but we require a personal guarantee. need the personal guarantee. As long as you follow your loan commitments (as detailed in the loan contract) Asset security will never be required. If you take out loans in excess of $150K generally, you can get the option of a personal guarantee and security that is in the form charges on assets.