FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Trott Park Small Business Loans
Let me know how you can avail the Trott Park Small Business Loans
Trott Park unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from the traditional business loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and funds may be on your account within 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. Our company loan is a pre-paid loan therefore you’ll be aware of the total amount to be paid, including any fees, interest or charges. This is then broken down into either 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 any business reason, such as control of cash flow business renovations, marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
About the Larger Trott Park Business Loans
What is the Larger Trott Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funding be utilised?
A large company loan can be used for almost any business reason, such as company remodeling, buying inventory or new equipment for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It’s by taking a charge on assets, which could also include the registration of this on the PPSR or filing a caveat.
A personal or director’s ensure is a commitment to repay a loan which is general in nature rather than stipulating security over an asset. The person who signs the guarantee is personally liable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
A caveat is a legal document that is filed to offer the legal claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan that exceeds $250,000, we may offer an initial pre-approval to ease the process. It is possible to get this done without a credit check and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial well-being checks. It’s not an offer or guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer that you might receive could be subject to different conditions.
The application process
Do I have the right to receive 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 business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form within a few minutes and an experienced company credit specialist will contact you to guide you through the process.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $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 to $500K: Details for application including credit consent twelve months of bank records, IRD statement Last 2 years’ finalised financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer in just one hour – as long as you make your application in standard company hours and let us utilise the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements , we are able to provide a decision in just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be able to provide you with a conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Certain offers have been approved within 24 hours.
The quickest method can be ensure you apply during normal business hours, and let us use the advance bank verification to verify your bank information online. If you upload the copies of bank statements it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we typically provide an answer within one hour, provided you make your application at standard business timings and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statements, we are able to provide a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be capable of provide the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The fastest way can be ensure you apply during normal business hours and let us use the advance bank verification link to check your bank’s information online. If you opt to send us documents from your account statements, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we take into consideration a range of elements that determine the health of your business and the level of repayments your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances of your company.
When you make an application for a particular amount, we look at a range of factors to determine your well-being of the business and the amount of repayments that your business is able to afford. The total amount of the loan will be determined by the particulars that are unique to your company.
Fees & repayments
How much do you charge for an company loan?
When you apply for one of our business financing, we will assess the risk assessment of your company and offer you with a customised proposal that includes the loan amount, the terms and the interest rates. It is a business loan is an upfront priced loan therefore you will know the exact amount due, which includes any costs, fees, or interest rates.
What determines the rate that I pay?
Business loan interest rates differ based on various factors like the amount of money borrowed, the business assets the money will be used for and the sector the company is in, how long the company has been operating for, in the event that the company has enough cash flow to cover the loan, and general health or creditworthiness of the company.
What are the costs?
There are no hidden costs with our company loans. You’ll be aware of the amount you’ll need to pay, and when, right from day one. There’s no compounding and there are no additional charges (as long as you make your payments punctually).
We don’t charge an application fee. You can request a credit loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of the loan at any point in time.
If you choose to take this route, please talk to one of our helpful company loans professionals. They will offer you with details for repayment and an early payout figure. This is calculated as the sum of the principal balance and the accrued interest up to the time of early payment and 1.5 percent of the principal amount remaining and any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being transparent about the ways we gather data, process, exchange and secure your information, is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We use an advanced bank verification system that allows you to instantly verify the bank account details online, allowing us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from an asset that they own to make the funding. The asset can be either an individual property, such as the family home, or an company property like a truck as well as a piece of machine.
The majority of lenders, including the banks with the biggest size, prefer to make loans secured by assets. If you’re struggling to pay back the loan, then your assets could be transferred to the lender. In essence it is an opportunity to secure new funding using the value of what you already have.
What do I require security to get an company loan?
For loans of up to $150,000, there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. require a personal guarantee. So long as you comply with your loan obligations (as specified in the loan contract) Asset security is not needed. For loans over $150,000 generally there is the option of a personal guarantee and security in the form of a charge over assets.