FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Ashfield Small Business Loans
Let me know how you are able to avail the Ashfield Small Business Loans
Ashfield unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from an traditional business loan?
Apply for this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and the money could be in your account within 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. This business loan is an upfront priced loan so you will be aware in advance of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every company use, including control of cash flow business improvements, advertising for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal purposes.
About Larger Ashfield Business Loans
What is the Larger Ashfield Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been trading for at least 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can the funds be used for?
A larger business loan can be used to fund almost every business need, including business renovations, purchase of equipment or inventory for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It’s in the form of a charge over assets, which could also include registering this through the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally based rather than stipulating security over a particular asset. The person signing the guarantee is personally accountable if the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR gives the priority of personal property granted depending on the date that a security interest has been registered.
A caveat is a legal form of document to provide the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan of more than $250K we may be able to provide an initial pre-approval that will help make the process. It is possible to get this done without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial health checks. It’s not an offer or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you receive could have different terms.
The application process
Are I eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Complete the online form in few minutes and an experienced company loan specialist will call you to guide you through the process.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Application requirements, 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 and 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we typically offer an answer within one hour, provided you apply in standard business time and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statement, we’ll offer the decision within the span of one company day.
For the Larger Business Loan ($100K or more) we might be likely to provide you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The quickest method for you to apply is ensure you apply during normal company hours. You can also allow us to use our advanced bank verification system to instantly verify your bank account information online. If you choose to send us documents from your account accounts, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within one hour – as long as you apply during normal business times and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statements, we’ll be able to provide a decision within 1 business day.
For the Larger Business Loans ($100K to $500K) we may be able to offer you with a conditional pre-approval within six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Some offers have been approved within less than 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to check your bank’s information online. If you choose to upload copies of your bank statements it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of variables that determine how much we can lend you health of the business and the extent of repayments that your company can support. The amount you receive from the loan will be determined by the specifics that are unique to your business.
When you submit 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 for your business and the level of repayments that your business is able to afford. The amount you receive from your loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much do you charge for an business loan?
When you request one of our company loan, we will assess the risk assessment for your business and offer you with a customised offer including the amount of loan, the term and interest rates. It is a company loan is an upfront priced loan therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What determines the amount I am charged?
Interest rates for company loans rates vary due to factors including the amount borrowed, the business assets the funds are used to purchase as well as the field the business is in, how long the business has been in operation for, in the event that the business has sufficient cash flow to cover the loan, and the overall well-being or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs with our company loans. You’ll know precisely what you need to pay, and at what time, from the very first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can apply for a loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan early?
You may choose to pay back the entire amount of the advance loan at any time.
If you decide to do this please contact our helpful business credit experts. They’ll offer you with repayment details and an early payout figure. This is calculated as the sum of the principal balance and the accrued interest up to the time of early payout and 1.5 percent of the principal balance as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow routine, we provide repayments either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing the ways we gather, use, exchange and secure your information, is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We employ a highly sophisticated bank verification system that allows you to immediately verify your bank account information online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the business owner uses an asset that they own to get the funding. The asset can be either an individual property, such as the family home or it could be a business property like a truck or other piece of machinery.
The vast majority of lenders, not just the banks with the biggest size, prefer to make loans secured by assets. If you’re struggling to pay back the loan then your assets could be taken over by the lender. In essence it’s an opportunity to secure new funding making use of the value of what you already own.
Should I require security for a business loan?
Up to $150,000 in loans the requirement for asset security is not required before you can access the money, however we do require an individual guarantee. So long as you comply with the loan terms (as stipulated in your loan contract document) Asset security is not required. For loans over $150,000 generally, there is the option of a personal ensure and security that is in the form charges on assets.