FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Parafield Gardens Small Business Loans
Let me know about the Parafield Gardens Small Business Loans
Parafield Gardens unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
Apply for the Small Business Loan in under 10 minutes online or over the phone. You’ll get a same day response and the money could be in your account within 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. This company loan is a loan that is priced upfront so you will know ahead of time the total amount payable including any fees, interest or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company purpose including managing cash flows, company remodels and marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
About larger Parafield Gardens Business Loans
What is the Larger Parafield Gardens Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 with 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 determined?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan that is this large, your business needs to be operating for a minimum of 3 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 to demonstrate at least 12 months of trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost every business use, including business remodeling, buying equipment or inventory or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This can be done by taking a charge against assets, and could include registration with the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to repay a loan which is generally in nature rather than defining the security of a specific asset. The person who is signing the ensure is personally responsible if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR allows the priority of personal property assigned in accordance with the date on which a security interest has been registered.
An affidavit is an official document lodged to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan of $250,000 or more we can 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 based on an initial assessment that includes answering a couple of financial well-being questions. It’s in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could be on different terms.
Application process
Do I qualify for funds?
You may apply for a 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)
- you must prove 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 up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in just a few minutes, and a dedicated company loan specialist will call you to assist you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s License) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent, 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we usually offer a response in one hour if you submit your request at quality company time and let us use the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statements , we are able to offer an answer within 1 company day.
For the Larger Business Loan ($100K to $500K) we may be in a position to offer you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the specifics of each application. Certain deals have been approved within the space of 24 hours.
The quickest method is to make sure you apply during standard business hours, and let us use the advanced bank verification system link to verify your bank information online. If you decide to upload the copies of bank accounts, it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we typically provide an answer in just one hour, provided you apply at standard business hours and let us use the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements we can provide a decision in as little as an business day.
For the Larger Business Loans ($100K or more) we might be in a position to provide you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Some offers have been approved in the space of 24 hours.
The most efficient method is to make sure you apply during standard business hours and let us use the sophisticated bank verification link to instantly confirm your bank details online. If you decide to send us duplicates of your banking statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of factors in order to assess what is the health of your business and the amount of repayments your business is able to afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
If you apply for a specific amount we will consider a number of aspects to assess the well-being of your business and the level of the repayments your company can support. The amount you receive from your loan will be determined by the particulars the company.
Fees & repayments
How do you charge for a business loan?
If you decide to request business loans with us business financing, we’ll assess the risk assessment the business and provide you with a customised offer, including the loan amount, the terms and interest rates. This business loan is an upfront-priced loan so you will know the exact amount due, which includes any charges or interest.
What is the basis for the rate I am charged?
Interest rates for business loans rates depend on several variables like the amount to be that is borrowed, what business assets the funds are used to purchase in addition to the industry that the business operates in, the long the business has been running as well as whether the company has sufficient cash flow to cover the loan, as well as the general health or financial standing of the company.
What are the cost?
There aren’t any hidden charges for our business loans, and you’ll know exactly how much you’ll be required to pay, and when, starting from the very first day. There’s no compounding and no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You are able to get a cash loan no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay off the loan in advance?
You can repay the entire amount of the loan early at any time.
If you decide to pursue this option, please contact our helpful company lending specialists. They’ll offer you with the details of your repayment and an early payment figure. It will be calculated using the sum of the remaining principal amount and accrued interest to the time of early payment, plus 1.5% of the principal balance as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being transparent about how we collect the information we collect, use, share and ensure the security of your information is vital and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and security. We use an advanced banking verification system to instantly confirm your bank account information online. This allows us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an company owner borrows from assets they own to get the funds for a loan. The asset may be an asset belonging to the personal, like the family home or a company asset such as a vehicle or piece or equipment.
The majority of banks, not just the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, the asset might be sold by the lender. In essence it’s a way of securing new financing by making use of the value of what you already own.
Should I need security to secure a company loan?
Up to $150K in loans no asset security is required in advance to gain access to the funds however, we require a personal guarantee. need the personal guarantee. If you adhere to your loan obligations (as stipulated in your loan contract), asset security will never be needed. For loans that exceed $150K, typically, you will need a personal ensure and security that is in the form charges on assets.