FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ashby Small Business Loans
Let me know what you think of the Ashby Small Business Loans
Ashby unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
The application for the Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and funds may be in your account in 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. This company loan is a pre-paid loan which means you be aware in advance of the total amount to be paid, including any fees, charges or charges. This is then divided into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company use, including the management of cash flow, business remodeling, marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal use.
About the Larger Ashby Business Loans
What is the Larger Ashby Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated 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, your company needs to be operating for at least three years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan can be used for nearly any business use, including business improvements, purchasing equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This can be done by taking a charge over assets, which could also include the registration of this through the PPSR or making as a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature rather than stipulating security over a particular asset. The person who is signing the guarantee is personally liable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR grants prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
An affidavit is an official document lodged to provide the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting a Larger Business Loan of $250,000 or more we may be able to provide an initial pre-approval to simplify the process. We might be able to do this without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being checks. It’s not an offer or guarantee of funds. Unconditional approval is subject to an extensive credit evaluation and any offer you are offered could be subject to different conditions.
The application process
Are I eligible for funding?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in few minutes and a dedicated company loan specialist will contact you to assist you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within an hour if you submit your request within standard company timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll provide a decision within the span of one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be capable of provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this can be quicker based on the particular circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The most efficient method would be to ensure you apply during standard company hours. Also, let us use the advanced bank verification system to verify your bank account information online. If you opt to upload duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour if you apply during standard business time and permit 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 are able to offer an answer in as little as the span of one business day.
For Larger Business Loans ($100K up to $500,000) we could be capable of offer you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain offers have been approved in the space of 24 hours.
The quickest method is to make sure you apply during standard business hours. You can also allow us to use our sophisticated bank verification to check your bank’s information online. If you upload the copies of bank accounts, it can take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a specific amount we take into consideration a range of factors for determining the well-being that is your business and the extent of payments your business can afford. The total amount of your loan will depend on the specifics that are unique to your business.
If you apply for a particular amount, we consider a variety of variables to assess the health for your company as well as the amount of repayments your company can support. The total amount of the loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for a company loan?
When you request one of our company loans, we will assess the risk assessment the business and offer an individualised offer that includes the amount of loan, the term and interest rates. A company loan is a loan that is priced upfront and you’ll know the exact amount to be paid, including any charges or interest.
What is the basis for the rate I am charged?
Interest rates for company loans rates vary due to factors including the amount borrowed, what company assets the money will be used for and the sector the business operates in, the long the company has been in operation for, what percentage of the company has sufficient cash flow to cover the loan, and also the overall well-being and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our company loans. You’ll know precisely how much you need to pay and when, from the day you sign up. There’s no compounding and no additional fees (as long as you make your payments on time).
We do not charge an application fee. You can get a cash loan with no cost upfront or commitment to apply.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of the loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful company loans specialists. We will provide you with the details of your repayment and an early payout figure. This is calculated as the sum of the principal balance plus any accrued interest as of the time of the early payout plus 1.5% of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing how we collect data, process, exchange and ensure the security of your information is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We use an advanced banking verification system to instantly verify your bank account details online to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a business owner utilises assets they own to secure the funds for a loan. The asset could be an individual asset, such as the family home, or it could be a business property like a truck or piece of equipment.
The vast majority of lending institutions, including the major banks, prefer to secure loans against assets. If you’re struggling to pay 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 own.
Do I require security to secure a company loan?
For loans that exceed $150K, no asset security is required prior to the loan’s access but we do require the personal guarantee. In the event that you fulfill the loan terms (as specified in your loan contract) the security of assets is not needed. For loans over $150K generally, you can get an individual ensure and security that is in the form the charge of assets.