FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Ascot Vale Small Business Loans
Tell me more about Ascot Vale Small Business Loans
Ascot Vale unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from a traditional company loan?
Apply to this Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and the money could be in your account in 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. We offer a company loan is an upfront priced loan and you’ll be aware in advance of the total amount due, which includes the interest, fees and charges. This is then broken down into either weekly or daily installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business purpose including managing cash flows, company renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
About the Larger Ascot Vale Business Loans
What is the Larger Ascot Vale Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size the business needs to have been operating for at least three years and have an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A large company loan can be used for almost every company reason, such as business renovations, to purchase inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. It is usually by taking a charge against assets and can include the registration of this on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally based rather than stating the security of a specific asset. The person who is signing the ensure is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR permits the priority of personal property assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document lodged to offer the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help make the process. It is possible to do this without a credit verification and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial health checks. It’s not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you receive could be subject to different terms.
The application process
Are I eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application within a couple minutes, and a dedicated business expert in lending will call you to guide you through the process.
To be eligible for up to $100,000 you’ll require the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$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-$500K: Details of the application, including credit consent and 12 months of bank statements, IRD statement, last 2 years finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer within an hour if you submit your request in quality business time and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements we can offer an answer within the span of one company day.
For the Larger Business Loan ($100K to $500K) we may be able to provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be quicker based on the particular circumstances of each application. Some agreements have been approved within 24 hours.
The fastest way is to ensure you apply during normal business hours, and allow us to use the advanced bank verification system to instantly verify your bank account information online. If you choose to send us documents from your account statements it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we usually offer an answer within one hour – provided you submit your request during standard business time and allow us to use the bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statement, we’ll offer an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K and up) We may be in a position to offer the conditional pre-approval in around 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this can be faster depending upon the circumstances for each application. Some agreements have been approved within less than 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. Also, allow us to use the advance bank verification link to verify your bank account information online. If you choose to send us copies of your bank statements, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we consider a variety of elements in order to assess what is the well-being for your business and the level of payments your company can support. The total amount of your loan will be contingent on the specifics for your company.
When you apply for a certain amount, we consider a variety of aspects to assess how much we can lend you such as well-being of your company as well as the amount of repayments your company can support. The total amount of your loan will be determined by the specifics for your company.
Fees & repayments
What is the cost for a business loan?
When you request business loans with us company financing, we’ll assess the risk assessment for your business and offer an individualised offer, including 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 to be paid, including any charges or interest.
What determines the rate that I pay?
Business loan interest rates depend on several factors such as the amount that is borrowed, what business assets the money are used to purchase as well as the field the company is in, how long the company has been operating, what percentage of the company has enough cash flow to fund the loan, and also the general well-being or financial standing of the company.
What are the cost?
There aren’t any hidden charges for our company loans. You’ll be aware of the amount you need to pay, and at what time, from the first day. There’s no compounding interest and no additional fees (as as you make your payments in time).
We do not charge an Application Fee. You are able to get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay off the loan earlier?
You may choose to pay back the entire amount of your loan in full at any time.
If you choose to take this route, please contact our helpful business lending experts. We will provide you with the details of your repayment and an early payment figure. The figure will be calculated as the sum of the remaining principal amount and accrued interest to the time of early payout and 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and ensure the security of your information is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system link to instantly verify your bank account information online so we can provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a business owner uses an asset they own to make the funds for a loan. The asset can be either an individual property, such as the family home, or an business asset like a truck as well as a piece of machine.
The vast majority of lending institutions, not just the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan, then your asset may be transferred to the lender. In essence it’s the process of securing new financing taking advantage of the value of what you already have.
Should I need security to secure a business loan?
For loans up to $150K it is not necessary to secure assets upfront to access the money, however we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan commitments (as detailed in your loan contract document) and you are able to meet your obligations, asset security will never be required. If you take out loans in excess of $150,000 generally, you are able to get the option of a personal ensure and security that is in the form the charge of assets.