FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Hyde Park Small Business Loans
Let me know about the Hyde Park Small Business Loans
Hyde Park unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
Apply to get your Small Business Loan in under 10 minutes via the internet or by phone. You will receive a same day response and the funds could be available in just 24 hours. Traditional company loans have an annual interest rate along with other charges and fees. The company loan is an upfront priced loan so you will be aware in advance of the total amount payable including any interest, fees or charges. This is then divided into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company purpose including control of cash flow business improvements, advertising, to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
About larger Hyde Park Business Loans
What is the Larger Hyde Park Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How is 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.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for at least three years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size is a great option for almost every company purpose including company renovations, purchase of equipment or inventory for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. This is by taking a charge on assets and can include registration with the PPSR or registering a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally accountable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR grants preference over private property assigned according to the date the registration of a security interest.
A caveat is a legal form of document to provide the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250K, we may offer an initial pre-approval in order to smooth out the process. We might be able to make this decision without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health questions. It’s not an offer of credit or guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be on different conditions.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application in few minutes and a dedicated business lending specialist will call you to help you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we can often offer a response in one hour if you submit your request during quality business hours and let us make use of the advanced bank verification system to immediately verify your bank account information 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 Loan ($100K to $500K) we may be in a position to provide you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some offers have been approved in less than 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours and allow us to use our advanced bank verification system to check your bank’s information online. If you choose to upload duplicates of your banking statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour – provided you submit your request at standard business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements we can offer a decision in just one business day.
If you are applying for Larger Business Loans ($100K and up) we could be able to provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some agreements have been approved within less than 24 hours.
The most effective method for you to apply is ensure you apply during normal business hours, and allow us to use the advance bank verification link to check your bank’s information online. If you choose to send us copies of your bank statements it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a particular amount, we consider a variety of factors in order to assess what is the health for your company and the level of repayments that your business will be able to support. The total amount of the loan will be determined by the specific circumstances of your company.
If you apply for a particular amount, we look at a range of variables to assess how much we can lend you such as well-being for your company and the level of repayments that your business can afford. The total amount of your loan will be determined by the particular circumstances the company.
Fees & repayments
How much do you charge for an company loan?
When you apply for our company loans, we’ll assess the risk profile the company and provide you with a tailored offer, including the amount of the loan, the duration and the interest rates. It is a business loan is an upfront priced loan and you’ll know the exact amount you will have to pay, including 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 such as the amount that is borrowed, the company assets the funds are used to purchase as well as the field the business is operating in, how long the company is in operation, how long the business has sufficient cash flow to fund the loan, as well as the overall health as well as creditworthiness company.
What are the fees?
There are no hidden fees with our company loans. You’ll be aware of the amount it is that you need to pay, and when, from the day you sign up. 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 with with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan earlier?
You can repay the total amount of your loan in full at any time.
If you choose to pursue this option, please contact our helpful business loans experts. We will offer you with details on repayment along with an early payout estimate. This will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payment in addition to 1.5% of the remaining principal plus any outstanding fees.
What is the process for repayments?
To ensure you do not miss payments and to work your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing how we collect information, use it, and exchange it, as well as safeguard your data, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We employ an exceptionally sophisticated bank verification system link to instantly verify the bank account details online so we can provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an company owner makes use of an asset they own to get the funding. The asset can be an individual property, such as the family home or it could be a business asset such as a vehicle or other piece of machinery.
The vast majority of lenders, not just the banks with the biggest size, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, then your asset may be transferred to the lender. In essence it is a way of securing new financing by making use of the value of what you already own.
What do I require security to secure an company loan?
For loans that exceed $150K, the requirement for asset security is not required before you are able to access the money however, we do need a personal guarantee. As long as you follow your loan obligations (as stated in the loan contract), asset security will never be required. For loans of over $150K generally there is an individual ensure and security in the form of an asset charge.