FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Parkinson Small Business Loans
Let me know more about Parkinson Small Business Loans
Parkinson unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from the traditional business loan?
Apply to this Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and have the funds in your account in 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. We offer a company loan is a cash-based loan and you’ll be aware in advance of the total amount to be paid, including any fees, interest 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 to fulfill almost any business purpose including managing cash flows, business remodels and marketing to purchase inventory, new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
About larger Parkinson Business Loans
What is the Larger Parkinson Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan that is this large the business needs to have been trading for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large company loan can be used for almost any business purpose including business renovations, purchase of new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This can be done by taking a charge over assets, and could be registered on the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature, rather than defining security over a particular asset. The person who is signing the ensure is personally responsible if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR permits preference over private property granted depending on the date that a security interest has been registered.
The caveat can be described as a formal document that is filed to offer an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000 we can offer an initial pre-approval to make the process. We may be able to get this done without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial well-being questions. It is neither an offer nor a guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you may receive may be on different conditions.
The application process
Can I be eligible for funding?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (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 application process is simple and easy. Just complete the online application within a couple minutes, and an experienced business expert in lending will call you to assist you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Information on the application including credit consent twelve months bank statement, an IRD statement, 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 an answer?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within an hour, provided you submit your request at quality business hours and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statement, we’ll provide a decision within the span of one business day.
For the Larger Business Loan ($100K to $500K) we may be likely to provide you with pre-approval conditional to your application within about 6 hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Some agreements have been approved in just 24 hours.
The most efficient method can be make sure you apply during normal business hours and permit us to use the advance bank verification to confirm your bank details online. If you choose to send us documents from your account statements , it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K or more) we typically provide a response in one hour if you make your application during standard business timings and you allow us to use the bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements, we are able to offer an answer within one business day.
If you are applying for Larger Business Loans ($100K or more) we might be capable of offer you with a conditional pre-approval within six hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved in less than 24 hours.
The fastest method is to ensure you apply during normal business hours and allow us to use the modern bank verification link to instantly check your bank’s information online. If you send us duplicates of your banking statement, it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of elements in order to assess what is the health that is your company and the amount of repayments that your business is able to afford. The total amount of the loan will be determined by the specifics for your company.
When you make an application for a certain amount, we will consider a number of factors to determine how much we can lend you such as health for your company and the extent of payments your company is able to afford. The amount you receive from your loan will depend on the specifics of your company.
Fees & repayments
How much should you charge for a company loan?
If you decide to make an application for our business loan, we will assess the risk assessment of your business and provide you with a tailored proposal that includes loan amount, term and interest rates. It is a company loan is an upfront priced loan which means you know the exact amount payable including any costs, fees, or interest rates.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on a variety of factors like the amount of money of money borrowed, the business assets the funds will be used for, the industry the company operates in, the long the company has been in operation as well as what percentage of the business has enough cash flow to support the loan, and also the overall well-being or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our company loans, and you’ll know precisely what it is that you need to pay, and when, right from the first day. There’s not any compounding interest and no extra fees (as long as you make your payments in time).
We do not charge an Application Fee. You are able to get a cash loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay off the loan earlier?
You can choose to repay the entire amount of your loan in full at any time.
If you are deciding to take this route, please call our helpful business loan professionals. They’ll provide you with details for repayment and an early payment figure. The figure will be calculated as the sum of the principal amount remaining and any accrued interest at the time of early payment in addition to 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work with your cash flow cycle we provide payments that are either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and knowing how we collect data, process, exchange and protect your information, is of paramount importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We employ a highly sophisticated bank verification system link to immediately verify the bank account details online to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner makes use of an asset that they own to obtain the funds for a loan. The asset can be either an asset belonging to the personal, like the family home or it could be a business asset like a truck or other piece of machinery.
The vast majority of the lenders including the banks with the biggest size, prefer to make loans secured by assets. If you have trouble paying back the loan, your asset may be transferred to the lender. In essence, it is an opportunity to secure new financing by making use of the value of what you already own.
What do I need security to get a business loan?
For loans up to $150K there is no requirement for asset security upfront to access the money however, we do need a personal guarantee. As long as you follow the loan terms (as stipulated in the loan contract), asset security is not needed. If you take out loans in excess of $150K generally, there is a personal guarantee and security in the form an asset charge.