FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Park Ridge Small Business Loans
Tell me more about Park Ridge Small Business Loans
Park Ridge unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from an ordinary company loan?
It is possible to apply to your Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and have the funds available in just 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. Our business loan is a loan that is priced upfront so you will be aware of the total amount payable including any fees, charges or charges. Then, it is broken down into either a daily or weekly repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business need, such as control of cash flow company improvements, advertising for purchasing inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Park Ridge Business Loans
What is the Larger Park Ridge Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to be operating for at least three years and have an annual turnover of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost any company need, including company remodeling, buying new 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 required for accessing funds over $150,000. It is usually by way of charge over assets, which could also include the registration of this through the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally based rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR permits the priority of personal property assigned depending on the date that a security interest that is registered.
A caveat is a legal form of document to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger company loans of $250K or more we may be able to provide a preliminary pre-approval to help ease the process. It is possible to get this done without a credit verification and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health questions. It is neither an offer nor a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer that you may receive may be based on different terms.
Application process
Do I have the right to receive funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in few minutes and an experienced business credit specialist will contact you to help you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s License), an NZBN/IRD that is valid and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent, 12 months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within an hour, provided you submit your request within standard company timings and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statement, we’ll offer an answer in just one business day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to provide you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Certain agreements have been approved in the space of 24 hours.
The fastest way would be to make sure you apply during normal business hours. Also, let us use the modern bank verification link to verify your bank account information online. If you decide to upload copies of your bank statement, it may take a bit longer.
How quickly will I receive the cash?
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 times and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we are able to offer an answer in just an business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of provide the conditional pre-approval in around 6 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 on the specifics of each application. Certain transactions have received approval within less than 24 hours.
The fastest way is to make sure you apply during normal business hours. Also, allow us to use our advance bank verification to check your bank’s information online. If you send us the copies of bank accounts, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a specific amount we take into consideration a range of factors in order to assess how much we can lend you well-being of the business and the extent of repayments that your company can afford. The amount you receive from your loan will be contingent on the particular circumstances of your company.
When you apply for a specific amount we will consider a number of elements to assess your well-being of the business as well as the amount of repayments that your company can support. The total amount of the loan will be determined by the particular circumstances for your company.
Fees & repayments
How much do you charge for a business loan?
When you make an application for our company loans, we’ll assess the risk assessment that you have for your company and provide an individualised proposal that includes the loan amount, the terms and interest rates. It is a company loan is a loan that is priced upfront therefore you will be aware in advance of the total amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on a variety of variables like the amount to be borrowed, the business assets the money will be used for in addition to the industry that the company operates in, how long the business has been running and whether the company has enough cash flow to cover the loan, and general well-being or creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our business loans, and you’ll know precisely what it is that you be required to pay and when, from day one. There’s no compounding and no extra fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You are able to apply for a loan with without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay out the loan earlier?
You can choose to repay the entire amount of the loan in full at any time.
If you choose to pursue this option, please talk to one of our helpful business loan specialists. The experts will provide you with the details of your repayment along with an early payout estimate. This will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of the early payout and 1.5% of the remaining principal plus any outstanding fees.
What are the repayment methods?
To help you avoid missing payments and to work your cash flow schedule, we provide repayments either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being upfront about how we collect data, process, exchange and protect your information, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to protecting the security of customers and security. We make use of an advanced bank verification system to immediately verify your bank account details online. This allows us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from assets they own to get the funding. The asset may be an asset belonging to the personal, like the family home, or it could be a company asset such as a vehicle or piece or equipment.
The majority of lending institutions, including the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, the asset might be taken over by the lender. In essence it’s means of securing new funding making use of the value of what you already have.
Are I require security for an company loan?
For loans up to $150K no asset security is required upfront to access the money, however we require a personal guarantee. require the personal guarantee. If you adhere to your loan commitments (as stated in your loan contract) Asset security will never be needed. For loans over $150K generally, there is the option of a personal ensure and security in the form of the charge of assets.