FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Ashburton Small Business Loans
Tell me about the Ashburton Small Business Loans
Ashburton unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an ordinary business loan?
It is possible to apply for your Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and the funds could be in your account in 24 hours. Traditional company loans refer to an interest rate per annum plus other fees and charges. Our business loan is a loan that is priced upfront therefore you’ll be aware in advance of the total amount payable including any fees, interest or charges. Then, it is broken down into either a daily or weekly repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company need, such as managing cash flows, business remodels and marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal purposes.
About larger Ashburton Business Loans
What is the Larger Ashburton Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the company needs to have been operating for at least three years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be used for?
A Business Loan of a larger size can be used for almost any company purpose including business renovations, purchase of inventory or new equipment for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. It’s as a result of an charge over assets, and could include registering this on the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally based rather than stipulating the security for a particular asset. The person who is signing the ensure is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR grants the priority of personal property granted according to the date a registration of a security interest.
Caveats are legal document lodged to offer an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
When you’re applying for the Larger Business Loan of $250,000 or more it is possible to offer an initial pre-approval to make the process. It is possible to apply for this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health checks. It is not an offer of credit or guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could have different terms.
The application process
Can I be eligible for funding?
You may be eligible for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Complete the online form within a couple minutes, and a dedicated company expert in lending will contact you to guide you through the process.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour – as long as you make your application in standard business hours and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we’ll be able to offer a decision within 1 business day.
If you are applying for a Larger Business Loan ($100K or more) we may be in a position to provide you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Some offers have been approved within 24 hours.
The fastest way would be to ensure you apply during normal business hours, and allow us to use the modern bank verification link to verify your bank information online. If you opt to send us duplicates of your banking accounts, it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we can often offer an answer within an hour if you make your application at standard business hours and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements, we are able to offer a decision in just 1 business day.
For Larger Business Loans ($100K to $500K) we could be able to offer you with pre-approval conditional to your application in about 6 hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Some agreements have been approved within 24 hours.
The quickest method would be to make sure you apply during normal business hours, and let us use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a certain amount we look at a variety of variables for determining what is the well-being of your business and the level of the repayments your company can afford. The amount you receive from your loan will depend on the particular circumstances for your company.
When you make an application for a particular amount, we consider a variety of elements to determine your health that is your business and the amount of the repayments your company is able to afford. The amount you receive from your loan will depend on the specifics the business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to request business loans with us company loans, we’ll assess the risk profile that you have for your business and offer an individualised offer that includes the amount of loan, the term and the interest rates. It is a company loan is an upfront priced loan which means you be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
The interest rates on business loans rates depend on a variety of factors such as the amount that is borrowed, the business assets the money will be used for, the industry the business operates in, the long the business has been in operation, in the event that the company has enough cash flow to cover the loan, as well as the general well-being or financial standing of the company.
What are the cost?
There are no hidden costs with our company loans, and you’ll know precisely what you need to pay, and when, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We do not charge an Application Fee. You can get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the total amount of your loan in full at any time.
If you are deciding to pursue this option, please contact our helpful company loan specialists. They will provide you with the details of your repayment along with an early payout estimate. This is calculated as the sum of the principal amount remaining plus any accrued interest as of the date of early payout and 1.5% of the principal remaining and any fees that remain unpaid.
How do repayments work?
To make sure you do not miss due dates and also to be in line with your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing how we collect, use, exchange and safeguard your data, is vital and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We use an advanced bank verification system that allows you to immediately verify your bank account details online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner borrows from the assets they have to get the funding. The asset can be a personal asset like the family home, or an business property like a truck as well as a piece of machine.
The majority of lenders, including the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan, the asset could be sold by the lender. In essence, it is means of securing new financing by making use of the value of what you already have.
What do I need security to get a business loan?
Up to $150,000 in loans the requirement for asset security is not required in advance to gain access to the funds however, we do need a personal guarantee. In the event that you fulfill the loan terms (as stated in your loan contract document), asset security will never be required. For loans over $150,000 generally there is a personal ensure and security that is in the form charges on assets.