FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Middle Park Small Business Loans
Tell me how you can avail the Middle Park Small Business Loans
Middle Park unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from an traditional business loan?
The application for this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and the funds could be in your account within 24 hours. Traditional business loans are based on an annual rate of interest along with other charges and fees. The company loan is a loan that is priced upfront and you’ll know in advance the amount you will have to pay, including the interest, fees and charges. This is then broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company reason, such as managing cash flows, company remodeling, marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
About Larger Middle Park Business Loans
What is the Larger Middle Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been operating for at least three years with an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be used for?
A Business Loan of a larger size is a great option for almost any company purpose including business improvements, purchasing equipment or inventory, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. It’s by taking a charge on assets, and could include registration in the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally based rather than defining the security for a particular asset. The person who is signing the ensure is personally accountable if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR permits the priority of personal property granted depending on the date that a security interest has been registered.
A caveat is a legal document filed to offer notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan of more than $250K we can offer an initial pre-approval that will help smooth out the process. We may be able to apply for this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial well-being checks. This is not an offer of credit or guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer that you receive could be based on different conditions.
Application process
Can I be eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a few minutes and a dedicated company credit specialist will call you to guide you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent and 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K or more) we usually offer an answer within one hour, provided you submit your request within quality company hours and you allow us to use the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements , we are able to provide the decision in just one company day.
For Larger Business Loans ($100K or more) we may be able to provide you with conditional pre-approval within 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved within less than 24 hours.
The quickest method can be make sure you apply during standard company hours, and permit us to use the modern bank verification link to check your bank’s information online. If you choose to send us documents from your account statement, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we typically provide an answer within an hour – as long as you apply in normal business hours and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements we can offer a decision in as little as 1 business day.
For Larger Business Loans ($100K and up) we might be capable of provide you with a conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Some agreements have been approved within just 24 hours.
The fastest method is to make sure you apply during standard business hours and allow us to use the modern bank verification link to check your bank’s information online. If you opt to send us the copies of bank accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount we consider a variety of variables that determine the well-being for your company as well as the amount of the repayments your company can support. The amount you receive from your loan will depend on the particular circumstances for your business.
When you submit an application for a set amount, we take into consideration a variety of factors to determine the health for your business and the extent of repayments your business can afford. The total amount of the loan will be determined by the specifics the business.
Fees & repayments
How much should you charge for a company loan?
When you make an application for business loans with us company loan, we’ll assess the risk assessment of your business and provide an individualised offer, including loan amount, term and interest rates. A business loan is an upfront cost loan so you will be aware in advance of the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I will be charged?
The interest rates on business loans rates depend on several variables like the amount to be that is borrowed, what business assets the funds are used to purchase, the industry the company is operating in, how long the business has been in operation and what percentage of the business has sufficient cash flow to support the loan, and also the overall well-being or creditworthiness of the company.
What are the cost?
There aren’t any hidden charges with our company loans, and you’ll know exactly how much it is that you be required to pay and at what time, from the first day. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments in time).
We do not charge an Application Fee. You can apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan earlier?
You can choose to repay all of your loan early at any time.
If you decide to do this please contact our helpful business lending specialists. They will provide you with details for repayment and an early payout figure. It will be calculated using the total of the principal remaining and the accrued interest up to the date of early payout in addition to 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing how we collect information, use it, and exchange it, as well as ensure the security of your information is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use 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 clients as well as their security. We use an advanced banking verification system to instantly verify your bank account information online to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner uses assets they own to get the loan. The asset may be a personal asset like the family home or it could be a company asset such as a truck as well as a piece of machine.
The majority of lending institutions, including the big banks, tend to make loans secured by an asset. If you are having difficulty paying back the loan then the asset might be offered for sale by the lender. In essence, it’s an opportunity to secure new financing making use of the value of what you already have.
Should I need security for an business loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access However, we do require a personal guarantee. In the event that you fulfill your loan obligations (as detailed in the loan contract) Asset security is not required. For loans that exceed $150,000, typically, you will need the option of a personal guarantee and security that is in the form the charge of assets.