FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Parkside Small Business Loans
Let me know about the Parkside Small Business Loans
Parkside unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an traditional business loan?
Apply to your Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and the money could be in your account within 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. This business loan is a loan that is priced upfront which means you be aware of the total amount payable including any fees, charges or charges. This is then broken down into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company need, such as managing cash flows, business remodels and marketing, to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
About the Larger Parkside Business Loans
What is the Larger Parkside Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size the company needs to be trading for at least 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funding for?
A larger company loan can be used for almost all business need, including company renovations, purchase of inventory or new equipment for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. It is usually by way of charge on assets, and may include registration in the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to repay credit that is general in nature, rather than defining the security of a specific asset. The person signing the ensure is personally accountable if the business lender is not able to pay back 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 objects or assets). The PPSR grants prioritisation over property that is personal to be assigned in accordance with the date on which a security interest has been registered.
A caveat is a legal document that is filed to provide an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000, we may offer a preliminary pre-approval to help simplify the process. It is possible to do this without credit checks and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial health questions. This is not an offer or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be on different terms.
The application process
Are I eligible for funding?
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 company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form within a couple minutes, and an experienced business loan specialist will contact you to guide you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we can often provide an answer within an hour – as long as you make your application within quality business times and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements we can provide the decision within just an business day.
For the Larger Business Loan ($100K to $500K) we could be able to provide the conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some offers have been approved in less than 24 hours.
The quickest way to apply is to make sure you apply during normal business hours. You can also allow us to use the advance bank verification link to instantly verify your bank information online. If you decide to send us duplicates of your banking statements , it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer a response in one hour – provided you submit your request during normal business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements we can offer an answer in just an business day.
For Larger Business Loans ($100K to $500K) we could be likely to provide you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Certain offers have been approved in just 24 hours.
The fastest method is to make sure you apply during standard business hours and let us use the sophisticated bank verification link to instantly verify your bank account information online. If you upload the copies of bank statement, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a certain amount we will consider a number of variables that determine the well-being of the company and the level of repayments your company is able to afford. The amount you receive from your loan will be contingent on the specifics of your company.
If you apply for a set amount, we take into consideration a variety of variables to determine the health that is your business and the amount of the repayments your company can support. The total amount of your loan will depend on the specifics for your business.
Fees & repayments
How do you charge for a business loan?
When you make an application for business loans with us company financing, we’ll assess the risk assessment of your company and offer an individualised offer, including the amount of loan, the term and interest rates. The company loan is an upfront priced loan which means you know in advance the total amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I am charged?
Interest rates for company loans rates depend on a variety of variables like the amount to be of money borrowed, the business assets the money are used to purchase as well as the field the company is operating in, how long the company has been running as well as how long the business has sufficient cash flow to fund the loan, as well as the overall health or financial standing of the business.
What are the fees?
There aren’t any hidden costs with our business loans, and you’ll be aware of the amount you’ll be required to pay and when, right from day one. 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 apply for a loan with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I repay the loan early?
You can choose to repay the entire amount of your loan in full at any time.
If you do decide to take this route, please talk to one of our helpful company loans professionals. They will provide you with details on repayment and an early payment figure. This is calculated as the total of the principal balance and the accrued interest up to the date of early payout and 1.5% of the principal remaining and any fees that remain unpaid.
How do repayments work?
To ensure you do not miss due dates and also to be in line your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about the ways we gather data, process, exchange and safeguard your data, is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account details online. This allows us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner utilises the assets they have to get the funds for a loan. The asset can be a personal asset like the family home or an business asset such as a truck or piece of equipment.
The majority of lending institutions, not just the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan then the asset might be transferred to the lender. In essence it is a way of securing new financing by using the worth of the asset you already have.
Are I need security to get a business loan?
For loans up to $150,000 there is no requirement for asset security prior to the loan’s access however, we require a personal guarantee. need a personal guarantee. So long as you comply with the loan terms (as stipulated in the loan contract) the security of assets is not needed. For loans that exceed $150K, generally there is the option of a personal guarantee and security in the form of the charge of assets.