FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ascot Park Small Business Loans
Let me know what you think of the Ascot Park Small Business Loans
Ascot Park unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from a traditional company loan?
The application to your Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and have the funds on your account within 24 hours. Traditional business loans are based on an annual interest rate together with additional fees and charges. This business loan is a cash-based loan therefore you’ll be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into either a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company reason, such as the management of cash flow, company improvements, advertising for purchasing inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Ascot Park Business Loans
What is the Larger Ascot Park Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan that is this large the company needs to be operating for at least three years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funds be used for?
A large company loan can be used to fund almost all company need, including business improvements, purchasing new equipment or inventory or as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. This is by taking a charge against assets, and could include registration on the PPSR or making as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature, rather than specifying security over a particular asset. The person who signs the guarantee is personally liable in the event that the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR grants the priority of personal property assigned according to the date a security interest has been registered.
Caveats are legal document that is filed to provide the legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger business loans of $250,000 or more it is possible to offer an initial pre-approval in order to ease the process. We could be able to do this without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial health checks. It is not an offer or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer you receive could be subject to different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for a 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 trade (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Complete the online form in few minutes and a dedicated company loan specialist will call you to guide you through the process.
To apply for up $100,000 you’ll need ID details (valid Driver’s Licence), a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Application details including credit consent as well as 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) We can usually offer an answer within an hour, provided you apply in quality business times and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements , we’ll be able to provide an answer in as little as the span of one business day.
For Larger Business Loans ($100K and up) we may be capable of offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Certain deals have been approved in the space of 24 hours.
The most efficient method for you to apply is ensure you apply during standard company hours, and let us use the advance bank verification to confirm your bank details online. If you choose to upload the copies of bank statement, it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within an hour – provided you submit your request in standard business time and let us make use of the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements, we will be able to offer the decision within an business day.
For the Larger Business Loans ($100K or more) we may be able to provide you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Some transactions have received approval in just 24 hours.
The most efficient method would be to ensure you apply during standard business hours, and allow us to use our modern bank verification link to check your bank’s information online. If you decide to send us copies of your bank statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a specific amount we look at a variety of elements that determine the well-being of the business as well as the amount of repayments your company can afford. The amount you receive from your loan will depend on the particular circumstances the company.
When you apply for a particular amount, we look at a range of variables to determine how much we can lend you such as well-being of the company and the extent of repayments your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances for your business.
Fees & repayments
How much should you charge for an business loan?
When you make an application for the business credit, we’ll assess the risk assessment that you have for your company and offer you with a tailored offer, including the amount of loan, the term and the interest rates. It is a business loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any charges, interest rates or fees.
What is the factor that determines the price I’m charged?
Business loan interest rates vary due to factors like the amount of money borrowed, the company assets the money are used to purchase in addition to the industry that the company is in, how long the company has been running for, in the event that the company has enough cash flow to support the loan, and the overall well-being or creditworthiness of the company.
What are the fees?
There are no hidden fees with our company loans. You’ll know exactly how much it is that you need to pay, and when, starting from the day you sign up. There’s no compounding interest and there are no additional charges (as as you make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of the advance loan at any time.
If you decide to pursue this option, please speak to our friendly business credit specialists. They will provide you with details for repayment and an early payout figure. This is calculated as the sum of the principal balance and any accrued interest at the date of early payout, plus 1.5% of the principal balance and any outstanding fees.
What is the process for repayments?
To make sure you do not miss due dates and also to be in line with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing the ways we gather data, process, exchange and secure your information, is of huge importance and is an essential aspect 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 and other data. Our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We make use of an advanced bank verification system link to instantly verify the bank account details online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term “asset-based” refers to borrowing where the company owner uses the assets they have to obtain the funding. The asset may be an asset belonging to the personal, like the family home, or a company asset like a truck as well as a piece of machine.
The vast majority of banks, not just the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan, your assets could be transferred to the lender. In essence, it’s means of securing additional financing using the value of what you already own.
Are I require security for a business loan?
For loans of up to $150K, it is not necessary to secure assets in advance to gain access to the funds, however we do need an individual guarantee. So long as you comply with the terms of your loan (as detailed in your loan contract document) Asset security is not required. If you take out loans in excess of $150,000 generally, you are able to get a personal guarantee and security in the form of a charge over assets.