FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Pascoe Vale South Small Business Loans
Let me know how you can avail the Pascoe Vale South Small Business Loans
Pascoe Vale South unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
Apply to your Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and the funds could be available in just 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. This company loan is a loan that is priced upfront so you will be aware in advance of the amount you will have to pay, including any fees, interest or charges. This is then broken down into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company use, including control of cash flow business remodeling, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal use.
About larger Pascoe Vale South Business Loans
What is the Larger Pascoe Vale South Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been 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) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be used for?
A large company loan can be used for nearly any company need, including company remodeling, buying equipment or inventory as well as for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This can be done by taking a charge against assets, which could also be registered on the PPSR or filing as a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature rather than stipulating security over a particular asset. The person who is signing the ensure is personally accountable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated 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 granted depending on the date that a security interest was registered.
Caveats are legal document that is filed to offer the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan of more than $250K, we may offer an initial pre-approval that will help make the process. We might be able to make this decision without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial well-being checks. It is not an offer or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you are offered could have different terms.
Application process
Do I have the right to receive funds?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a couple minutes, and an experienced business expert in lending will be in touch to help you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$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 twelve months of bank records, IRD statement as well as the two most recent years’ financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we usually provide an answer within an hour – as long as you make your application in quality business timings and permit us to utilise the bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statements we can provide a decision within 1 business day.
For the Larger Business Loan ($100K and up) we might be capable of provide you with a conditional pre-approval in about six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard business hours. You can also allow us to use the modern bank verification to verify your bank account information online. If you decide to send us the copies of bank accounts, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually offer a response in one hour – provided you submit your request at standard business hours and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statements, we’ll be able to offer an answer in as little as the span of one business day.
For the Larger Business Loans ($100K to $500K) we may be likely to offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Some offers have been approved within 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. You can also allow us to use our modern bank verification to verify your bank information online. If you send us documents from your account statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a specific amount we consider a variety of elements to determine your well-being of your company as well as the amount of repayments your business is able to afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
When you apply for a set amount, we take into consideration a variety of elements to assess your health of your company as well as the amount of repayments your company is able to afford. The amount you receive from your loan will be determined by the specifics of your business.
Fees & repayments
How much should you charge for a company loan?
If you decide to request one of our company loans, we’ll assess the risk profile of your business and offer you with a tailored offer including the amount of the loan, the duration and interest rates. This company loan is a loan that is priced upfront so you will know in advance the total amount you will have to pay, including charges or interest.
What is the basis for the rate I pay?
Interest rates for company loans rates vary due to factors such as the amount that is of money borrowed, the business assets the money are used to purchase in addition to the industry that the business is in, how long the company is in operation as well as in the event that the business has sufficient cash flow to support the loan, and general health or creditworthiness of the business.
What are the fees?
There aren’t any hidden costs with our business loans, and you’ll know precisely how much it is that you be required 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 on time).
We do not charge an application fee. You can make an application for loans with with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with setting up 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% of the amount of the loan.
Can I pay off the loan early?
You may choose to pay back all of your advance loan at any time.
If you are deciding to pursue this option, please speak to our friendly business lending specialists. They will offer you with the details of your repayment along with an early payout estimate. This is calculated as the total of the principal amount remaining and the accrued interest up to the time of the early payout in addition to 1.5% of the principal remaining as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being clear about how we collect, use, exchange and safeguard your data, is vital 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 standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and security. We utilise a sophisticated bank verification system to immediately verify the bank account details online. This allows us to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an company owner makes use of an asset they own to secure a loan. The asset can be an asset belonging to the personal, like the family home or a business property like a truck or piece or equipment.
The vast majority of banks, even the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then your assets could be offered for sale by the lender. In essence, it is a way of securing new financing taking advantage of the value of what you already have.
Do I need security to get a business loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds but we do require the personal guarantee. If you adhere to your loan obligations (as detailed in the loan contract) the security of assets is not required. For loans over $150K typically, you will need a personal ensure and security is provided in the form of the charge of assets.