FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Parkside Small Business Loans
Let me know more about Parkside Small Business Loans
Parkside unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from an traditional business loan?
Apply to the 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 interest rate per annum together with additional fees and charges. We offer a business loan is a loan that is priced upfront which means you know in advance the total amount payable including any fees, interest or charges. Then, it is broken down into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company need, such as the management of cash flow, company improvements, advertising to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal use.
About Larger Parkside Business Loans
What is the Larger Parkside Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, 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 of this size, your business needs to be trading for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can the funding be used for?
A larger business loan is a great option for almost any company reason, such as business remodeling, buying inventory or new equipment 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 needed for funding of more than $150,000. It is usually as a result of an charge against assets, which could also include registration on the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is general in nature rather than stating security over an asset. The person signing the ensure is personally liable in the event that the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR gives the priority of personal property assigned depending on the date that a security interest was registered.
A caveat is a legal form of document to offer the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan of $250,000 or more it’s possible to offer an initial pre-approval in order to ease the process. We might be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial health checks. It is not an offer or guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer that you might receive could be based on different terms.
Application process
Can I be eligible for funding?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (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 application process is simple and simple. Just fill out the online application within a couple minutes, and a dedicated business credit specialist will be in touch to assist you.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s License) along with an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour, provided you make your application at quality company hours and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements , we’ll be able to provide a decision in as little as one company day.
For the Larger Business Loan ($100K up to $500,000) we might be capable of offer you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some agreements have been approved within just 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours and permit us to use the modern bank verification to instantly confirm your bank details online. If you upload documents from your account statements it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide a response in one hour – as long as you submit your request during standard business time and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we will be able to offer a decision within 1 business day.
For the Larger Business Loans ($100K or more) we may be likely to provide you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Some transactions have received approval within 24 hours.
The fastest way is to make sure you apply during standard business hours. Also, allow us to use our advanced bank verification system to instantly verify your bank information online. If you choose to send us duplicates of your banking statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a specific amount we consider a variety of elements for determining the well-being of the business and the extent of payments your company can afford. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
When you make an application for a set amount, we look at a range of factors to determine how much we can lend you such as health of the company as well as the amount of payments your business is able to afford. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for our company loan, we will assess the risk assessment of your company and offer you with a customised offer that includes loan amount, term and interest rates. The business loan is an upfront-priced loan so you will be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I’m charged?
The interest rates on business loans rates vary due to factors such as the amount that is borrowed, what company assets the funds are used to purchase and the sector the business operates in, the long the business has been operating as well as what percentage of the business has sufficient cash flow to pay for the loan, as well as the overall well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll know precisely what you’ll need to pay and when, starting from the very first day. There’s no compounding interest, and no additional fees (as long as you are able to make your payments on time).
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 covers the costs associated in establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of your loan at any point in time.
If you decide to take this route, please speak to our friendly business lending specialists. They’ll offer you with the details of your repayment as well as an early payout amount. This is calculated as the total of the remaining principal amount and the accrued interest up to the time of early payout in addition to 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payments and to work your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear how we collect information, use it, and exchange it, as well as secure your information, is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We employ a highly sophisticated bank verification system link to instantly verify the bank account details online, allowing us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner borrows from assets they own to get the loan. The asset can be either a personal asset like the family home, or it could be a business asset such as a vehicle or piece or equipment.
The majority of the lenders including the major banks, prefer to make loans secured by an asset. If you have trouble paying back the loan then the asset might be taken over by the lender. In essence, it’s an opportunity to secure new funding taking advantage of the value of what you already have.
Should I need security to get a company loan?
Up to $150K in loans the requirement for asset security is not required in advance to gain access to the funds, however we do need the personal guarantee. If you adhere to the terms of your loan (as stipulated in your loan contract document), asset security is not needed. For loans of over $150,000 typically, you will need the option of a personal ensure and security in the form of charges on assets.