FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ascot Park Small Business Loans
Let me know about the Ascot Park Small Business Loans
Ascot Park unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from the traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and the funds could be on your account within 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. This business loan is a loan that is priced upfront which means you be aware of the total amount to be paid, including any fees, interest or charges. This is then broken down into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company use, including the management of cash flow, company remodels and marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
About the Larger Ascot Park Business Loans
What is the Larger Ascot Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A large business loan is a great option for almost every company need, including business renovations, to purchase inventory or new equipment, 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 required for accessing funds over $150,000. It’s by way of charge over assets, and may include the registration of this in the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is general in nature rather than specifying the security of a specific asset. The person signing the guarantee is personally responsible if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including items or assets). The PPSR grants priority over personal property to be granted according to the date a security interest that is registered.
Caveats are legal document filed to offer an official notice of a claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000, we may offer an initial pre-approval to simplify the process. We may be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial health questions. It is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could be based on different terms.
Are I eligible for funding?
You are eligible to apply for an company 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 of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Complete the online form within a few minutes and an experienced business loan specialist will contact you to guide you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we usually provide an answer within an hour if you submit your request in quality business time and permit us to utilise the bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements , we’ll be able to offer an answer within just an business day.
For Larger Business Loans ($100K or more) we may be capable of provide you with a conditional pre-approval in around six hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain transactions have received approval in 24 hours.
The fastest way can be make sure you apply during normal business hours and permit us to use the advanced bank verification system to verify your bank account information online. If you opt to upload documents from your account accounts, it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we typically offer a response in one hour – provided you submit your request during standard business times and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can offer an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be able to provide the conditional pre-approval in about six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Some transactions have received approval within just 24 hours.
The quickest method would be to ensure you apply during standard business hours, and let us use the advanced bank verification system link to instantly confirm your bank details online. If you choose to send us documents from your account accounts, it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a particular amount, we consider a variety of variables to determine your health of the business and the extent of repayments that your company can afford. The total amount of the loan will be determined by the particular circumstances of your company.
When you apply for a set amount, we will consider a number of factors to assess the well-being of the company and the level of the repayments your company can support. The total amount of your loan will depend on the specifics for your company.
Fees & repayments
What is the cost for an business loan?
When you make an application for the company loan, we’ll assess the risk assessment the business and provide you with a tailored proposal that includes loan amount, term and interest rates. The company loan is an upfront cost loan so you will be aware of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I’m charged?
Business loan interest rates depend on several variables like the amount to be borrowed, the business assets the money will be used for and the sector the business is operating in, how long the company has been running, how long the business has sufficient cash flow to support the loan, and also the overall well-being or creditworthiness of the company.
What are the charges?
There are no hidden costs for our company loans. You’ll be aware of the amount you be required to pay, and when, right from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can make an application for loans with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You may choose to pay back all of your loan early at any time.
If you do decide to pursue this option, please speak to our friendly business credit experts. They’ll offer you with details for repayment and an early payout figure. This is calculated as the total of the principal amount remaining plus any accrued interest as of the date of early payout and 1.5 percent of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide payments that are either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about the ways we gather, use, exchange and secure your information, is of huge importance and is an essential part 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 personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online so we can provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term “asset-based” refers to borrowing where the company owner uses the assets they have to obtain a loan. The asset may be an asset belonging to the personal, like the family home or an company asset such as a truck or other piece of machinery.
The vast majority of lenders, including the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, the asset might be taken over by the lender. In essence it is an opportunity to secure new funding taking advantage of the value of what you already own.
Are I need security to secure a business loan?
For loans that exceed $150,000, it is not necessary to secure assets before you are able to access the money, however we require a personal guarantee. require the personal guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract document), asset security is not needed. If you take out loans in excess of $150K generally, you can get a personal guarantee and security that is in the form charges on assets.