FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Hazelwood Park Small Business Loans
Tell me more about Hazelwood Park Small Business Loans
Hazelwood Park unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
It is possible to apply to get the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and have the funds on your account within 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. Our business loan is a cash-based loan and you’ll know ahead of time the total amount payable including any fees, interest or charges. This is then broken down into weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business need, such as managing cash flows, company improvements, advertising, to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Hazelwood Park Business Loans
What is the Larger Hazelwood Park Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth 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 in order to accommodate you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined 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, your company needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funding be used for?
A larger business loan can be used to fund almost every business need, including business remodeling, buying equipment or inventory for 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 necessary for accessing funds over $150,000. This can be done by taking a charge over assets, and may include registration in the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is generally in nature rather than defining security over an asset. The person who is signing the guarantee is personally liable if 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 lists security interests that are registered in respect of personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned according to the date the security interest was registered.
The caveat can be described as a formal form of document to offer notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger business loans that exceeds $250,000, we may offer an initial pre-approval that will help smooth out the process. It is possible to apply for this without credit checks and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial health questions. This is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be subject to different conditions.
The application process
Are I eligible for funding?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a few minutes and a dedicated company credit specialist will call you to help you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we can often provide an answer in just one hour – as long as you make your application in quality company hours and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements , we are able to offer an answer within 1 business day.
For Larger Business Loans ($100K or more) we could be capable of offer the conditional pre-approval within about six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some offers have been approved in less than 24 hours.
The quickest way to apply is to ensure you apply during standard business hours. Also, permit us to use the advanced bank verification system to instantly check your bank’s information online. If you send us documents from your account statement, it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we usually provide an answer within one hour – as long as you make your application within standard business time and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statement, we’ll offer a decision within one business day.
If you are applying for Larger Business Loans ($100K and up) we could be in a position to provide the conditional pre-approval within six hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Some transactions have received approval in 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, let us use the advanced bank verification system link to instantly confirm your bank details online. If you opt to send us duplicates of your banking statement, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we take into consideration a range of factors that determine what is the well-being of the company and the amount of repayments that your business 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 apply for a particular amount, we consider a variety of aspects to assess how much we can lend you such as well-being of your company and the amount of payments your business can afford. The total amount of your loan will be contingent on the specific circumstances of your business.
Fees & repayments
How much should you charge for a company loan?
If you decide to apply for our business financing, we’ll assess the risk assessment for your business and offer an individualised offer including the amount of the loan, the duration and interest rates. It is a company loan is an upfront cost loan which means you be aware of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Interest rates for business loans rates vary due to factors including the amount borrowed, what company assets the money are used to purchase in addition to the industry that the company operates in, how long the company has been in operation and what percentage of the business has sufficient cash flow to support the loan, and also the overall well-being and creditworthiness of the company.
What are the costs?
There aren’t any hidden costs with our company loans. You’ll know precisely what you’ll need to pay and when, starting from day one. There’s no compounding interest, and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You can apply for a loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
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 do decide to do this please talk to one of our helpful company loan professionals. The professionals will provide you with details for repayment along with an early payout estimate. This is calculated as the total of the principal amount remaining and accrued interest to the time of early payment, plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide payments that are either weekly or daily. 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 being clear about the ways we gather the information we collect, use, share and safeguard your data, is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We use an advanced bank verification system that allows you to immediately confirm your bank account information online so we can offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner uses an asset they own to obtain the funding. The asset can be a personal asset like the family home or it could be a business property like a truck as well as a piece of machine.
The majority of lending institutions, including the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan, your assets could be sold by the lender. In essence it is a way of securing additional financing taking advantage of the value of what you already have.
Are I require security to secure a company loan?
For loans up to $150K no asset security is required before you can access the money, however we do need the personal guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract) the security of assets is not needed. If you take out loans in excess of $150K generally, there is a personal ensure and security in the form a charge over assets.