FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Park Ridge South Small Business Loans
Tell me about the Park Ridge South Small Business Loans
Park Ridge South unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
It is possible to apply to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and have the funds in your account in 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. We offer a company loan is a pre-paid loan so you will know in advance the total amount payable including any fees, charges or charges. Then, it is divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly every business purpose including the management of cash flow, company remodels and marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
About the Larger Park Ridge South Business Loans
What is the Larger Park Ridge South Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
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 of this size the company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. Your company 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 demonstrate at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used for almost every company purpose including business remodeling, buying inventory or new equipment for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. This can be done by taking a charge against assets, which could also include registering this with the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally in nature rather than stipulating security over a particular asset. The person who signs 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 reflects security interests granted to individuals who own personal property (including items or assets). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
A caveat is a legal document lodged to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250K it is possible to offer an initial pre-approval in order to make the process. We could be able to get this done without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial health checks. It is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you might receive could be based on different terms.
The application process
Can I be eligible for funding?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the 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 simple and easy. Complete the online form within a few minutes and an experienced business expert in lending will contact you to guide you.
To apply for up $100,000, you’ll need ID details (valid Driver’s License), an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) We can usually offer an answer in just one hour – as long as you apply at standard company time and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statements , we will be able to provide a decision within 1 business day.
For the Larger Business Loan ($100K and up) we may be in a position to provide you with a conditional pre-approval within 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Some transactions have received approval within 24 hours.
The most effective method would be to ensure you apply during normal company hours. You can also let us use the advance bank verification to instantly verify your bank information online. If you decide to upload the copies of bank statement, it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within one hour, provided you apply within normal business timings and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statements, we’ll be able to offer an answer within an business day.
If you are applying for Larger Business Loans ($100K and up) We may be likely to provide you with a conditional pre-approval in about six hours. Once you have 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. Some agreements have been approved in just 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours and allow us to use the sophisticated bank verification to check your bank’s information online. If you opt to send us copies of your bank statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a certain amount, we will consider a number of elements to determine the well-being that is your company and the amount of repayments that your company can afford. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
When you submit an application for a set amount, we take into consideration a variety of elements to assess how much we can lend you such as well-being of your company as well as the amount of payments your business is able to afford. The amount you receive from your loan will be determined by the specifics of your business.
Fees & repayments
How do you charge for the cost of a business loan?
When you apply for our company credit, we will assess the risk profile that you have for your business and offer an individualised offer, including loan amount, term and the interest rates. This company loan is an upfront cost loan therefore you will be aware in advance of the total amount due, which includes any charges or interest.
What determines the amount I am charged?
Interest rates for business loans rates vary due to factors such as the amount that is that is borrowed, what business assets the money will be used for as well as the field the company is operating in, how long the company has been operating for, what percentage of the business has enough cash flow to cover the loan, and general health as well as creditworthiness company.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll know exactly how much you be required to pay, and when, starting from day one. There’s no compounding and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to apply for a loan no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay out the loan early?
You can decide to repay the entire amount of your loan in full at any time.
If you do decide to pursue this option, please call our helpful company loans specialists. The professionals will offer you with details for repayment as well as an early payout amount. The figure will be calculated as the sum of the principal remaining and any accrued interest at the time of the early payout in addition to 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align with your cash flow standard, we offer repayments that are either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about the ways we gather, use, exchange and secure your information, is crucial and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to security for our customers and security. We employ an exceptionally sophisticated bank verification system to immediately verify your bank account details online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner uses an asset that they own to make the funding. The asset can be either a personal asset like the family home, or an company asset such as a vehicle as well as a piece of machine.
The majority of lending institutions, even the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then the asset could be sold by the lender. In essence it is an opportunity to secure additional financing using the worth of the asset you already own.
Do I need security to secure an company loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds, however we require a personal guarantee. need a personal guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract) Asset security is not required. For loans that exceed $150K, typically, you will need a personal guarantee and security in the form of charges on assets.