FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Parramatta Small Business Loans
Tell me what you think of the Parramatta Small Business Loans
Parramatta unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
It is possible to apply for this Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and funds may be on your account within 24 hours. Traditional company loans are based on an annual interest rate plus other fees and charges. This business loan is a cash-based loan therefore you’ll be aware of the total amount payable including any fees, charges or charges. This is then broken down into a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company use, including control of cash flow business remodeling, marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
About Larger Parramatta Business Loans
What is the Larger Parramatta Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been operating for at least three years and generate an annual revenue of at least $700,000. It is necessary to 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 demonstrate at minimum 12 months of continuous trading.
How can the funds be used for?
A large company loan is a great option for almost any company purpose including business renovations, purchase of inventory or new equipment, as 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 required to access funding over $150,000. It is usually by taking a charge on assets, and may include registering this with the PPSR or registering as a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is generally based rather than stipulating the security for a particular asset. The person signing the ensure is personally responsible if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR permits the priority of personal property assigned according to the date the registration of a security interest.
Caveats are legal form of document to provide an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger business loans that is greater than $250K we may be able to provide an initial pre-approval to make the process. It is possible to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial well-being questions. It is not an offer of credit or guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer you may receive may have different conditions.
The application process
Are I 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, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for the 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 fast and easy. Simply complete the online form within a few minutes and a dedicated business lending specialist will contact you to assist you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) and a valid NZBN/IRD as well as at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Application details including credit consent and 12 months of bank statements, IRD statements, last 2 years finalised financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) We can usually offer an answer in just one hour, provided you submit your request within standard company time and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statement, we’ll provide an answer within an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be able to provide you with pre-approval conditional to your application in about six hours. After you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some offers have been approved within less than 24 hours.
The most effective method is to ensure you apply during standard business hours, and allow us to use our modern bank verification to confirm your bank details online. If you choose to upload the copies of bank statements it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within one hour – provided you submit your request in standard business time and let us use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements we can offer the decision in as little as the span of one business day.
For Larger Business Loans ($100K to $500K) we might be likely to provide you with a conditional pre-approval within six hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some offers have been approved in the space of 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours. Also, allow us to use the advance bank verification link to verify your bank information online. If you opt to send us copies of your bank statements, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of aspects that determine your well-being for your business as well as the amount of the repayments your business is able to afford. The amount you receive from the loan will be determined by the specific circumstances the company.
When you make an application for a set amount, we take into consideration a variety of aspects to assess how much we can lend you such as health of your business and the extent of payments your business will be able to support. The total amount of your loan will be contingent on the specific circumstances of your company.
Fees & repayments
What is the cost for a business loan?
If you decide to request the company credit, we’ll assess the risk profile the company and offer you with a customised offer, including the amount of the loan, the duration and the interest rates. It is a business loan is an upfront-priced loan and you’ll be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I’m charged?
Interest rates for business loans rates depend on several factors like the amount of money borrowed, what company assets the money are used to purchase and the sector the company operates in, how long the business has been running and whether the business has enough cash flow to pay for the loan, and overall health as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges for our business loans. You’ll know precisely what you be required to pay, and when, starting from the very first day. There’s no compounding and no additional fees (as as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You may choose to pay back the entire amount of the advance loan at any time.
If you do decide to pursue this option, please speak to our friendly company loans specialists. They’ll provide you with details on repayment as well as an early payout amount. It will be calculated using the total of the principal balance plus any accrued interest as of the time of early payout in addition to 1.5 percent of the remaining principal as well as any outstanding fees.
How do you make repayments work?
To ensure you do not miss due dates and also to be in line your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about how we collect information, use it, and exchange it, as well as secure your information, is vital and a vital element 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 certified for our commitment to security for our customers and privacy. We utilise a sophisticated banking verification system to immediately confirm your bank account information online, allowing us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the business owner borrows from an asset they own to get the loan. The asset can be either an individual asset, such as the family home or a company property like a truck or other piece of machinery.
The majority of banks, including the largest banks, are inclined to secure loans against assets. If you’re having trouble paying back the loan, then your asset may be sold by the lender. In essence, it’s an opportunity to secure new financing by making use of the value of what you already own.
What do I need security for an business loan?
For loans up to $150K no asset security is required prior to the loan’s access but we require a personal guarantee. require an individual guarantee. As long as you follow the terms of your loan (as stipulated in the loan contract), asset security will never be needed. For loans that exceed $150K, generally, there is a personal ensure and security in the form the charge of assets.