FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Croydon Park Small Business Loans
Tell me more about Croydon Park Small Business Loans
Croydon Park unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from the traditional business loan?
Apply for this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and the money could be in your account in 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. This business loan is an upfront priced loan so you will know in advance the total amount to be paid, including the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business purpose including the management of cash flow, business renovations, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Croydon Park Business Loans
What is the Larger Croydon Park Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been operating for at least three years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can the funds be used for?
A larger business loan can be used for almost all business use, including company renovations, to purchase inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This can be done in the form of a charge over assets, and may be registered through the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is general in nature, rather than stipulating security over an asset. The person signing the guarantee is personally liable if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be assigned in accordance with the date on which a registration of a security interest.
Caveats are legal document filed to offer the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting larger business loans that is greater than $250,000 we can offer an initial pre-approval in order to simplify the process. It is possible to make this decision without a credit verification and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial health questions. It’s neither an offer nor a guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer that you may receive may have different terms.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a few minutes and a dedicated company credit specialist will contact you to guide you through the process.
To apply for up to $100,000 you’ll require ID details (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent twelve months of bank statements, IRD statement and the last two years’ finalised financial statements, and interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer in just one hour – as long as you submit your request in quality business hours and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements , we will be able to offer a decision in as little as an company day.
For the Larger Business Loan ($100K up to $500,000) we could be able to offer you with conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Some agreements have been approved within just 24 hours.
The quickest method can be ensure you apply during standard company hours and permit us to use the modern bank verification to confirm your bank details online. If you opt to upload copies of your bank statements it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we can often provide an answer within one hour, provided you apply during normal business timings and permit us to 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 provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we could be in a position to provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Some offers have been approved in the space of 24 hours.
The quickest method is to ensure you apply during normal business hours. You can also let us use the modern bank verification to verify your bank account information online. If you choose to upload documents from your account statement, it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a certain amount, we will consider a number of elements for determining what is the health for your company and the level of payments your business is able to afford. The total amount of your loan will be contingent on the specific circumstances the business.
When you make an application for a particular amount, we take into consideration a variety of variables to assess how much we can lend you such as well-being of your company and the extent of repayments that your company is able to afford. The total amount of your loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much do you charge for the cost of a company loan?
When you apply for our company financing, we’ll assess the risk assessment that you have for your business and offer you with a customised offer, including the amount of loan, the term and the interest rates. The company loan is an upfront priced loan so you will be aware in advance of the total amount payable including any charges or interest.
What is the basis for the rate I am charged?
Interest rates for company loans rates differ based on various factors including the amount borrowed, what company assets the money are used to purchase and the sector the business is operating in, how long the business has been running and how long the company has sufficient cash flow to pay for the loan, and also the general health as well as creditworthiness business.
What are the costs?
There are no hidden fees for our company loans, and you’ll know exactly how much it is that you be required to pay and when, right from the day you sign up. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You are able to make an application for loans no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Do I have the option of paying off the loan early?
You may choose to pay back the entire amount of your loan in full at any time.
If you are deciding to pursue this option, please call our helpful company lending professionals. We will offer you with repayment details as well as an early payout amount. The figure will be calculated as the total of the remaining principal amount and any accrued interest at the time of early payout in addition to 1.5% of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss due dates and also to be in line with 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 protected?
The security of your personal information, as well as knowing how we collect information, use it, and exchange it, as well as secure your information, is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We utilise a sophisticated banking verification system to immediately confirm your bank account information online, allowing us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the business owner makes use of assets they own to secure the funds for a loan. The asset could be an asset belonging to the personal, like the family home, or it could be a business property like a truck or piece of equipment.
The vast majority of the lenders even the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, the asset might be transferred to the lender. In essence, it’s means of securing additional financing taking advantage of the value of what you already have.
Do I require security to secure an 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. require the personal guarantee. As long as you follow your loan commitments (as stated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150K, generally there is the option of a personal ensure and security is provided in the form of a charge over assets.