FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Ashford Small Business Loans
Tell me what you think of the Ashford Small Business Loans
Ashford unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from an ordinary company loan?
Apply for your Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans are based on an annual rate of interest together with additional fees and charges. This company loan is an upfront priced loan therefore you’ll be aware in advance of the total amount payable including any interest, fees or charges. Then, it is broken down into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business reason, such as the management of cash flow, company improvements, advertising to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal purposes.
Concerning Larger Ashford Business Loans
What is the Larger Ashford Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the business needs to be in operation for at least 3 years and generate an annual revenue of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funding for?
A Business Loan of a larger size can be used to fund almost any business need, including company improvements, purchasing new equipment or inventory for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It is usually by way of charge on assets, which could also include the registration of this on the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature rather than defining the security of a specific asset. The person who signs the guarantee is personally liable in the event that the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR permits the priority of personal property assigned depending on the date that a security interest that is registered.
A caveat is a legal form of document to offer notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of more than $250,000 we may be able to provide an initial pre-approval in order to simplify the process. We might be able to do this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes you answering some financial health checks. It is neither an offer nor a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer you are offered could be subject to different terms.
The application process
Do I have the right to receive funds?
You may apply for an business 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)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in just a few minutes, and an experienced company loan specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials such as age-related payables and aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) We can usually offer a response in one hour, provided you submit your request during standard company time and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements , we are able to offer an answer in as little as an company day.
For Larger Business Loans ($100K to $500K) we could be likely to provide the conditional pre-approval within about six 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 offers have been approved within just 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours and allow us to use the modern bank verification to verify your bank information online. If you upload the copies of bank statements it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within one hour – provided you apply during normal business time and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements, we are able to offer the decision within the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be in a position to provide you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this can be faster depending on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The quickest method would be to make sure you apply during normal business hours and allow us to use our modern bank verification link to instantly verify your bank information online. If you decide to send us the copies of bank statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of elements to determine what is the health that is your company as well as the amount of repayments your company is able to afford. The amount you receive from your loan will depend on the specifics for your business.
If you apply for a particular amount, we look at a range of variables to assess the well-being for your company as well as the amount of the repayments your business can afford. The amount you receive from the loan will be determined by the specifics the business.
Fees & repayments
What is the cost for a business loan?
When you make an application for one of our company loan, we will assess the risk assessment the company and offer you with a customised proposal that includes loan amount, term and the interest rates. It is a company loan is a loan that is priced upfront so you will 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 am charged?
Interest rates for business loans rates depend on a variety of factors including the amount that is borrowed, what business assets the money are used to purchase as well as the field the company is operating in, how long the business has been in operation, what percentage of the company has enough cash flow to cover the loan, and also the general health or creditworthiness of the company.
What are the charges?
There aren’t any hidden costs for our company loans, and you’ll know precisely what you’ll be required to pay and when, from the day you sign up. There’s no compounding interest, and there are no additional charges (as as you make your payments on time).
We don’t charge an application fee. You can apply for a loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan early?
You can decide to repay all of your advance loan at any time.
If you are deciding to pursue this option, please call our helpful business credit professionals. They’ll provide you with details for repayment and an early payment figure. The figure will be calculated as the total of the principal remaining plus any accrued interest as of the time of early payout plus 1.5 percent of the principal balance plus any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss payments and to work with your cash flow general, we provide repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about how we collect data, process, exchange and protect your information, is of paramount importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated banking verification system to immediately verify the bank account details online, allowing us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner uses assets they own to get the loan. The asset can be a personal asset like the family home or an business property like a truck or other piece of machinery.
The majority of the lenders not just the major banks, prefer to make loans secured by assets. If you’re having trouble paying back the loan, your asset may be sold by the lender. In essence it’s a way of securing new funding taking advantage of the value of what you already own.
Are I require security to get a business loan?
For loans that exceed $150K, it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. If you adhere to your loan obligations (as specified in your loan contract document), asset security is not required. If you take out loans in excess of $150K generally, you are able to get the option of a personal ensure and security in the form of a charge over assets.