FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Parkerville Small Business Loans
Tell me about the Parkerville Small Business Loans
Parkerville unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from an traditional business loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and funds may be on your account within 24 hours. Traditional company loans refer to an annual interest rate along with other charges and fees. The company loan is a pre-paid loan so you will be aware in advance of the total amount due, which includes any fees, charges or charges. This is then divided into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business need, such as control of cash flow business improvements, advertising to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
About larger Parkerville Business Loans
What is the Larger Parkerville Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the company needs to have been in operation 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) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used to fund almost all company reason, such as business renovations, purchase of equipment or inventory for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It’s in the form of a charge over assets and can include registration with the PPSR or filing as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is general in nature rather than stipulating the security of a specific asset. The person signing the guarantee is personally liable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date a registration of a security interest.
Caveats are legal document that is filed to offer an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan of $250,000 or more we can offer an initial pre-approval to simplify the process. We may be able to get this done without a credit check and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health questions. It is neither an offer nor a guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer that you receive could be subject to different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and 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 up to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a few minutes and an experienced business expert in lending will call you to guide you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within one hour – as long as you make your application within standard company hours and permit us to use the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statements we can offer the decision within an business day.
For the Larger Business Loan ($100K up to $500,000) we could be capable of offer you with pre-approval conditional to your application within six hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Certain offers have been approved in less than 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours, and let us use the modern bank verification to verify your bank account information online. If you choose to upload copies of your bank statement, it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) we typically offer an answer within an hour, provided you make your application at normal business hours and let us utilise the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statement, we’ll provide an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be capable of offer you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some offers have been approved within 24 hours.
The fastest method can be make sure you apply during normal business hours and permit us to use the advance bank verification link to verify your bank account information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a certain amount, we consider a variety of elements for determining the well-being of your company and the extent of payments your company can support. The amount you receive from your loan will depend on the specifics that are unique to your business.
If you apply for a certain amount, we will consider a number of aspects to determine how much we can lend you such as health that is your company and the level of repayments your company is able to afford. The total amount of your loan will depend on the specific circumstances the company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to make an application for business loans with us business credit, we’ll assess the risk assessment the business and offer you with a customised offer, including loan amount, term and the interest rates. A business loan is an upfront priced loan which means you be aware in advance of the total amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I am charged?
The interest rates on company loans rates vary due to factors including the amount borrowed, the company assets the money are used to purchase, the industry the company is operating in, how long the company has been operating and how long the company has enough cash flow to cover the loan, as well as the overall well-being or creditworthiness of the company.
What are the charges?
There are no hidden costs for our business loans. You’ll be aware of the amount you need to pay and when, starting from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You can get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan early?
You can repay all of your advance loan at any time.
If you do decide to take this route, please speak to our friendly company credit experts. They will provide you with repayment details as well as an early payout amount. It will be calculated using the total of the remaining principal amount and accrued interest to the date of early payout plus 1.5 percent of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing due dates and also to be in line with your cash flow standard, we provide repayments either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Security of your data, and being transparent about how we collect data, process, exchange and ensure the security of your information is of huge importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We use an advanced bank verification system that allows you to instantly verify the bank account details online, allowing us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner utilises the assets they have to get the funds for a loan. The asset may be an individual asset, such as the family home or a business asset such as a vehicle or piece or equipment.
The majority of lenders, even the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan, then the asset could be transferred to the lender. In essence, it is the process of securing new financing using the worth of the asset you already own.
Do I need security for an business loan?
For loans of up to $150K, no asset security is required prior to the loan’s access but we do need a personal guarantee. If you adhere to the terms of your loan (as stated in your loan contract) the security of assets will never be needed. For loans over $150,000 generally there is an individual ensure and security in the form a charge over assets.