FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Athol Park Small Business Loans
Let me know what you think of the Athol Park Small Business Loans
Athol Park unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from an ordinary business loan?
You can apply for your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and the funds could be on your account within 24 hours. Traditional business loans refer to an annual interest rate along with other charges and fees. Our business loan is a cash-based loan so you will be aware in advance of the total amount to be paid, including any fees, charges or charges. This is then broken down into a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business use, including managing cash flows, business remodeling, marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
About the Larger Athol Park Business Loans
What is the Larger Athol Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been operating for a minimum of 3 years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have 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 funds for?
A Larger Business Loan can be used for almost all company reason, such as business renovations, to purchase new equipment or inventory for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. It is usually by taking a charge against assets and can be registered through the PPSR or making as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally based rather than stipulating security over an asset. The person who signs the ensure is personally liable in the event that the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date the security interest that is registered.
Caveats are legal form of document to offer the legal claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan of $250,000 or more we may be able to provide an initial pre-approval that will help smooth out the process. We might be able to do this without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial well-being questions. It’s not an offer or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer that you receive could be based on different conditions.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (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 quick and easy. Simply complete the online form within a few minutes and a dedicated company credit specialist will be in touch to help you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often provide an answer within one hour, provided you submit your request in standard business times and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we are able to provide the decision in just an business day.
For the Larger Business Loan ($100K or more) we may be able to offer you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Certain offers have been approved within just 24 hours.
The most effective method is to make sure you apply during normal company hours, and let us use the advanced bank verification system link to instantly check your bank’s information online. If you send us duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we typically offer a response in one hour – provided you apply during normal business timings and let us utilise the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statements we can provide a decision in just 1 business day.
For the Larger Business Loans ($100K and up) We may be capable of provide you with pre-approval conditional to your application in around 6 hours. Once you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Some agreements have been approved within less than 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours, and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload duplicates of your banking accounts, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a certain amount, we take into consideration a range of elements in order to assess what is the health for your company and the extent of the repayments your company can support. The amount you receive from your loan will depend on the specifics of your company.
When you apply for a particular amount, we take into consideration a variety of factors to assess how much we can lend you such as well-being of your company and the level of repayments that your business can afford. The total amount of your loan will depend on the particular circumstances the company.
Fees & repayments
How much do you charge for the cost of a company loan?
When you make an application for one of our company credit, we’ll assess the risk assessment that you have for your business and provide you with a customised offer, including the amount of the loan, the duration and the interest rates. This company loan is an upfront-priced loan so you will know the exact amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates depend on several factors including the amount borrowed, the business assets the money will be used for and the sector the business is operating in, how long the company has been in operation and what percentage of the business has sufficient cash flow to cover the loan, and also the overall health and creditworthiness of the business.
What are the charges?
There are no hidden costs with our company loans, and you’ll know precisely what you need to pay, and when, right from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan earlier?
You can repay the entire amount of the advance loan at any time.
If you are deciding to do this please call our helpful company loan experts. We will offer you with details on repayment and an early payout figure. The figure will be calculated as the sum of the remaining principal amount and accrued interest to the time of early payment plus 1.5% of the principal remaining plus any outstanding fees.
How do you make repayments work?
To ensure you do not miss payments and to work your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about how we collect information, use it, and exchange it, as well as ensure the security of 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 utilise industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We make use of an advanced bank verification system to instantly verify your bank account information online, allowing us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses an asset they own to secure the funds for a loan. The asset may be an individual asset, such as the family home, or a business asset like a truck or piece or equipment.
The vast majority of lending institutions, not just the banks with the biggest size, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then your asset may be taken over by the lender. In essence, it is means of securing new financing making use of the value of what you already own.
Are I require security to get a company loan?
For loans that exceed $150K, it is not necessary to secure assets before you are able to access the money However, we do need a personal guarantee. So long as you comply with the loan terms (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not required. For loans that exceed $150K, typically, you will need an individual ensure and security is provided in the form of an asset charge.