FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Ascot Park Small Business Loans
Let me know how you are able to avail the Ascot Park Small Business Loans
Ascot Park unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
You can apply to this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and the money could be in your account within 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. Our company loan is a loan that is priced upfront which means you know in advance the amount you will have to pay, including any fees, interest or charges. This is then divided into a daily or weekly installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company use, including cash flow management, company improvements, advertising for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available for personal reasons.
About Larger Ascot Park Business Loans
What is the Larger Ascot Park Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly to work with your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been operating for at least three years, and have an annual income of $700,000. You must be 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 prove at minimum 12 months of continuous trading.
What can I use the funds for?
A larger company loan is a great option for almost any company use, including company improvements, purchasing inventory or new equipment for 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 needed to access funding over $150,000. This is as a result of an charge on assets and can include registration through the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is general in nature rather than stipulating security over a particular asset. The person signing the ensure is personally liable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
A caveat is a legal document filed to provide the legal claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan of more than $250,000, we may offer a preliminary pre-approval to help simplify the process. It is possible to do this without a credit check, and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial well-being questions. It is not an offer or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could be based on different terms.
The application process
Do I qualify for funds?
You may 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 business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a few minutes and an experienced business credit specialist will call you to guide you through the process.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent and 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within an hour if you submit your request during standard company times and let us use the advanced bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statements , we are able to provide an answer in just the span of one company day.
For the Larger Business Loan ($100K or more) we may be in a position to provide you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be quicker based upon the circumstances for each application. Certain deals have been approved in the space of 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours. You can also allow us to use the advance bank verification to confirm your bank details online. If you send us documents from your account statements 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 provide an answer in just one hour – as long as you submit your request in standard business timings and allow us to use the bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statements, we’ll be able to provide a decision in just one business day.
If you are applying for Larger Business Loans ($100K or more) we could be able to offer the conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain agreements have been approved in the space of 24 hours.
The fastest way is to make sure you apply during standard business hours. Also, permit us to use the advance bank verification link to verify your bank account information online. If you opt to send us documents from your account accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a certain amount we look at a variety of aspects for determining your health that is your company and the level of the repayments your company is able to afford. The amount you receive from your loan will depend on the specific circumstances that are unique to your company.
When you submit an application for a particular amount, we take into consideration a variety of aspects to determine the health of the business as well as the amount of the repayments your business will be able to support. The total amount of your loan will depend on the specifics the company.
Fees & repayments
How do you charge for a business loan?
When you request our business loans, we will assess the risk profile for your business and offer you with a customised offer, including the loan amount, the terms and interest rates. The company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I pay?
Business loan interest rates differ based on various factors like the amount of money that is borrowed, what company assets the funds will be used for in addition to the industry that the company operates in, how long the business has been in operation, what percentage of the company has sufficient cash flow to pay for the loan, and general health and creditworthiness of the business.
What are the fees?
There are no hidden fees for our company loans. You’ll be aware of the amount you need to pay and when, right from the very first day. There’s no compounding and no extra fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to apply for a loan without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay out the loan in advance?
You can repay the total amount of your loan at any point in time.
If you are deciding to take this route, please talk to one of our helpful business credit professionals. They will provide you with repayment details as well as an early payout amount. This is calculated as the sum of the remaining principal amount and the accrued interest up to the time of the early payout plus 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payment dates and to align with your cash flow general, we provide payments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing how we collect data, process, exchange and secure your information, is of huge importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and security. We use an advanced bank verification system to immediately verify the bank account details online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a business owner borrows from an asset that they own to secure the loan. The asset could be an individual asset, such as the family home, or an business asset such as a truck or other piece of machinery.
The majority of lending institutions, even the big banks, tend to guarantee loans against assets. If you’re struggling to pay back the loan then your assets could be taken over by the lender. In essence it is an opportunity to secure new funding making use of the value of what you already have.
Should I need security to secure an business loan?
For loans of up to $150K, no asset security is required prior to the loan’s access however, we do need the personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract), asset security is not needed. If you take out loans in excess of $150K generally, there is personal ensure and security in the form charges on assets.