FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Parramatta Small Business Loans
Tell me about the Parramatta Small Business Loans
Parramatta unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from a traditional company loan?
The application to get your Small Business Loan in under 10 minutes online or by phone. You will receive an immediate response, and the funds could be in your account in 24 hours. Traditional business loans have an annual rate of interest together with additional fees and charges. Our business loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including the interest, fees and charges. This is then broken down into either a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business use, including control of cash flow company remodels and marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
About Larger Parramatta Business Loans
What is the Larger Parramatta Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be trading for at least 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funding be utilised?
A large company loan can be used for almost every business purpose including company renovations, purchase of equipment or inventory, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It’s by taking a charge against assets, and may include the registration of this with the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is general in nature, rather than stipulating security over a particular asset. The person signing the guarantee is personally accountable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including objects or assets). The PPSR grants priority over personal property to be granted according to the date the registration of a security interest.
Caveats are legal document filed to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan of more than $250,000 we may be able to provide an initial pre-approval to simplify the process. We might be able to do this without credit checks and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves the answer to a series of financial health checks. It’s in no way an offer, nor is it a guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could have different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application in just a few minutes, and a dedicated business loan specialist will contact you to guide you through the process.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent, 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer within an hour, provided you submit your request in quality company times and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statement, we’ll provide a decision in just the span of one business day.
For Larger Business Loans ($100K or more) we may be likely to provide you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Some agreements have been approved in just 24 hours.
The quickest way to apply would be to make sure you apply during standard company hours and let us use the modern bank verification link to instantly verify your bank account information online. If you decide to upload the copies of bank statement, it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer within an hour – as long as you make your application in standard business timings and you allow us to use the bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements, we will be able to provide the decision within an business day.
If you are applying for Larger Business Loans ($100K and up) we may be in a position to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain deals have been approved in the space of 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours. Also, allow us to use the advanced bank verification system link to verify your bank account information online. If you decide to upload copies of your bank statements it may take a bit longer.
How much can I 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 elements for determining how much we can lend you health that is your company and the level of payments your company can afford. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
When you apply for a certain amount, we take into consideration a variety of elements to assess how much we can lend you such as health that is your company and the extent of repayments your company will be able to support. The total amount of your loan will be determined by the specific circumstances the company.
Fees & repayments
What is the cost for the cost of a business loan?
When you request our company credit, we will assess the risk profile of your company and offer you with a customised offer, including the loan amount, the terms and interest rates. It is a company loan is a loan that is priced upfront so you will know the exact amount payable including any interest rates, fees or charges.
What is the basis for the rate I am charged?
Business loan interest rates depend on several factors like the amount of money that is borrowed, what company assets the funds will be used for, the industry the business is in, how long the business has been running and what percentage of the company has enough cash flow to cover the loan, and overall health as well as creditworthiness company.
What are the cost?
There aren’t any hidden costs for our business loans. You’ll know exactly how much you be required to pay, and when, starting from the first day. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan early?
You can repay the entire amount of your loan early at any time.
If you do decide to pursue this option, please contact our helpful business credit professionals. They will offer you with details on repayment and an early payout figure. This is calculated as the total of the remaining principal amount plus any accrued interest as of the time of the early payout, plus 1.5% of the remaining principal as well as any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss due dates and also to be in line your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather the information we collect, use, share and protect your information, is crucial and a vital 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 personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to customer security and security. We make use of an advanced bank verification system to instantly confirm your bank account information online so we can provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an business owner utilises the assets they have to get the funding. The asset may be an individual property, such as the family home or it could be a company asset such as a vehicle or other piece of machinery.
The majority of lending institutions, including the largest banks, are inclined to secure loans against an asset. If you’re having trouble paying back the loan then your assets could be taken over by the lender. In essence, it’s means of securing additional financing taking advantage of the value of what you already have.
Do I require security to secure an company loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access However, we do require an individual guarantee. So long as you comply with the terms of your loan (as detailed in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally there is the option of a personal guarantee and security in the form of the charge of assets.