FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Middle Park Small Business Loans
Let me know more about Middle Park Small Business Loans
Middle Park unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from the traditional company loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and funds may be on your account within 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. The company loan is a cash-based loan so you will be aware in advance of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either weekly or daily installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business reason, such as the management of cash flow, company improvements, advertising to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Middle Park Business Loans
What is the Larger Middle Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to be operating for a minimum of 3 years and have an annual turnover of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A large company loan can be used for almost all company reason, such as company renovations, to purchase new equipment or inventory or as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It’s by taking a charge over assets, and may be registered through the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature rather than specifying the security for a particular asset. The person signing the ensure is personally accountable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR gives priority over personal property to be granted depending on the date that a security interest has been registered.
A caveat is a legal document that is filed to provide an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250K it’s possible to offer an initial pre-approval in order to make the process. We might be able to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial well-being questions. It is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you receive could be subject to different conditions.
Application process
Are I eligible for funding?
You can apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for for the 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 fast and easy. Complete the online form within a couple minutes, and a dedicated company credit specialist will call you to guide you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent as well as 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we typically offer an answer in just one hour, provided you apply during quality company time and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statements , we are able to offer the decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K and up) we may be likely to provide you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some agreements have been approved within the space of 24 hours.
The quickest method can be make sure you apply during normal company hours. Also, allow us to use the modern bank verification to instantly check your bank’s information online. If you choose to send us the copies of bank statements , it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we can often provide an answer in just one hour if you make your application in normal business timings and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statements, we are able to provide the decision in as little as an business day.
For the Larger Business Loans ($100K or more) we could be able to offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Some transactions have received approval within 24 hours.
The fastest method would be to make sure you apply during normal business hours and permit us to use the advance bank verification to verify your bank account information online. If you opt to send us duplicates of your banking statements, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a certain amount we will consider a number of factors to determine the well-being of your company and the level of payments your business can support. The total amount of your loan will be contingent on the particular circumstances of your business.
If you apply for a particular amount, we look at a range of elements to assess the well-being of your company and the level of payments your business can support. The total amount of the loan will be determined by the particular circumstances the business.
Fees & repayments
How much do you charge for a business loan?
If you decide to make an application for our company financing, we will assess the risk profile for your company and provide an individualised offer, including the loan amount, the terms and the interest rates. It is a business loan is an upfront cost loan which means you know the exact amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I pay?
The interest rates on company loans rates differ based on various variables like the amount to be borrowed, what company assets the funds are used to purchase in addition to the industry that the business operates in, how long the company is in operation and what percentage of the business has sufficient cash flow to fund the loan, and the overall well-being as well as creditworthiness company.
What are the charges?
There aren’t any hidden costs with our business loans. You’ll know precisely how much it is that you need to pay and when, right from day one. There’s no compounding and no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan with without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan in advance?
You can choose to repay the entire amount of the loan early at any time.
If you are deciding to take this route, please call our helpful company loan professionals. We will provide you with repayment details as well as an early payout amount. This is calculated as the sum of the principal remaining and any accrued interest at the time of early payout and 1.5 percent of the principal balance and any outstanding fees.
How do repayments work?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear how we collect data, process, exchange and secure your information, is crucial and is an essential part of our relationship 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 qualified for our dedication to protecting the security of customers and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account details online. This allows us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the company owner uses an asset that they own to get the funding. The asset may be an individual asset, such as the family home or an business asset such as a vehicle or piece or equipment.
The majority of the lenders even the largest banks, are inclined to guarantee loans against assets. If you are having difficulty paying back the loan then the asset could be transferred to the lender. In essence it is means of securing additional financing taking advantage of the value of what you already have.
What do I need security to secure a company loan?
For loans that exceed $150K, no asset security is required prior to the loan’s access However, we do require an individual guarantee. In the event that you fulfill your loan commitments (as specified in the loan contract), asset security will never be required. If you take out loans in excess of $150K typically, you will need personal guarantee and security is provided in the form of an asset charge.