FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Marsden Park Small Business Loans
Tell me more about Marsden Park Small Business Loans
Marsden Park unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
Apply to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the funds could be available in just 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. This business loan is a loan that is priced upfront and you’ll know in advance the total amount to be paid, including any fees, interest or charges. Then, it is divided into weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business reason, such as control of cash flow company remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Marsden Park Business Loans
What is the Larger Marsden Park 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 that can last up to 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to have been trading for at least 3 years and generate an annual revenue of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A large company loan is a great option for almost any business reason, such as business renovations, to purchase new equipment or inventory 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 is by taking a charge on assets, which could also include the registration of this with the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally based rather than defining the security of a specific asset. The person who is signing the guarantee is personally responsible if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated 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 gives the priority of personal property granted according to the date a security interest has been registered.
The caveat can be described as a formal document lodged to offer the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000, we may offer a preliminary pre-approval to help smooth out the process. We might be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial well-being checks. This is in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could be based on different terms.
The application process
Do I qualify for funds?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for for the 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 easy. Just complete the online application in few minutes and a dedicated company loan specialist will contact you to help you.
To apply for up to $100,000 you’ll require ID details (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent, 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour, provided you submit your request in standard business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statements , we are able to offer the decision within the span of one company day.
For Larger Business Loans ($100K to $500K) we may be in a position to offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved in less than 24 hours.
The fastest way is to make sure you apply during normal company hours and let us use the modern bank verification to instantly check your bank’s information online. If you opt to upload documents from your account accounts, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we usually offer a response in one hour – provided you submit your request in normal business hours and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your bank statements, we will be able to offer an answer within 1 business day.
For the Larger Business Loans ($100K up to $500,000) we could be capable of provide you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Some offers have been approved within just 24 hours.
The fastest method would be to make sure you apply during standard business hours and permit us to use the modern bank verification to instantly check your bank’s information online. If you choose to send us duplicates of your banking accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of factors in order to assess your health of the business and the amount of repayments your company is able to afford. The total amount of your loan will depend on the specific circumstances for your business.
If you apply for a specific amount we look at a range of factors to determine your health that is your business and the amount of repayments your company can afford. The total amount of your loan will be contingent on the particular circumstances of your company.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to apply for our business financing, we’ll assess the risk assessment of your business and provide an individualised offer that includes the loan amount, the terms and interest rates. This business loan is an upfront priced loan so you will be aware in advance of the total amount payable including any charges, interest rates or fees.
What determines the rate that I will be charged?
The interest rates on company loans rates depend on a variety of factors such as the amount that is borrowed, what company assets the money will be used for and the sector the business is in, how long the company has been running for, in the event that the business has enough cash flow to cover the loan, as well as the overall health or financial standing of the company.
What are the fees?
There aren’t any hidden costs for our company loans, and you’ll know precisely how much it is that you need to pay and when, right from the day you sign up. There’s no compounding interest, and no extra fees (as as long as you pay your payments on time).
We don’t charge an application fee. You can apply for a loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can choose to repay the entire amount of the loan early at any time.
If you are deciding to pursue this option, please call our helpful business loans experts. The specialists will offer you with repayment details and an early payout figure. It will be calculated using the total of the principal remaining plus any accrued interest as of the date of early payout and 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about how we collect, use, exchange and safeguard your data, is of paramount importance and is a crucial element 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 personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We make use of an advanced bank verification system that allows you to instantly verify your bank account information online so we can offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the business owner uses an asset that they own to make the funding. The asset can be a personal asset like the family home, or an business asset such as a truck or piece or equipment.
The vast majority of lenders, including the largest banks, are inclined to secure loans against assets. If you’re having trouble paying back the loan, your asset may be sold by the lender. In essence, it is a way of securing new funding using the worth of the asset you already have.
Should I require security to secure a company loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access However, we require a personal guarantee. require an individual guarantee. As long as you follow your loan commitments (as stipulated in your loan contract document) Asset security is not needed. For loans over $150,000 typically, you will need personal ensure and security in the form of a charge over assets.