FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ascot Small Business Loans
Let me know more about Ascot Small Business Loans
Ascot unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an traditional company loan?
You can apply to your Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and the funds could be on your account within 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. Our company loan is a loan that is priced upfront and you’ll know in advance the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for almost every business reason, such as control of cash flow company renovations, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal purposes.
About Larger Ascot Business Loans
What is the Larger Ascot Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount, 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) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can the funds be used for?
A Larger Business Loan can be used to fund almost every business purpose including business improvements, purchasing inventory or new equipment as well as for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It’s as a result of an charge on assets and can include the registration of this with the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature, rather than stating security over a particular asset. The person signing the guarantee is personally responsible if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including items or assets). The PPSR allows the priority of personal property granted in accordance with the date on which a security interest that is registered.
A caveat is a legal form of document to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan that is greater than $250K we can offer an initial pre-approval to simplify the process. We could be able to apply for this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial health checks. It is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer you might receive could be subject to different conditions.
The application process
Do I have the right to receive funds?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of 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 just a few minutes, and an experienced business credit specialist will call you to guide you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank records, IRD statement, last 2 years finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) We can usually offer an answer in just one hour if you submit your request at quality business time and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements , we are able to offer an answer in as little as 1 company day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be in a position to provide you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The most effective method would be to make sure you apply during normal business hours. You can also allow us to use our advanced bank verification system to instantly confirm your bank details online. If you decide to send us duplicates of your banking accounts, it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within an hour – as long as you apply within normal business time and allow us to use the bank verification system to immediately verify your bank account information online. If you choose to send us copies of your bank statement, we’ll offer a decision within 1 business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain offers have been approved within just 24 hours.
The most efficient method is to make sure you apply during standard business hours. You can also let us use the advanced bank verification system to verify your bank information online. If you upload copies of your bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of factors that determine how much we can lend you health for your company and the extent of the repayments your company is able to afford. The total amount of your loan will depend on the specific circumstances of your company.
When you make an application for a certain amount, we will consider a number of variables to determine the health for your company and the extent of repayments your company can support. The amount you receive from 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 make an application for the company loan, we’ll assess the risk profile of your business and offer you with a customised offer that includes the loan amount, the terms and interest rates. This company loan is an upfront priced loan which means you be aware of the total amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Interest rates for business loans rates depend on a variety of factors such as the amount that is of money borrowed, the company assets the money will be used for and the sector the business is operating in, how long the company is in operation for, what percentage of the business has sufficient cash flow to fund the loan, and overall well-being or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs with our business loans. You’ll be aware of the amount you’ll need to pay, and when, right from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan with without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay off the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you choose to take this route, please contact our helpful company credit experts. They will provide you with details on repayment as well as an early payout amount. This will be calculated as the total of the principal balance and the accrued interest up to the time of early payment and 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work your cash flow schedule, we provide repayments either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear the ways we gather, use, exchange and secure your information, is of paramount importance 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 personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to security for our customers and security. We use an advanced bank verification system to immediately verify your bank account information online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an business owner utilises the assets they have to secure the funds for a loan. The asset can be an individual asset, such as the family home, or an business asset such as a truck or other piece of machinery.
The vast majority of banks, including the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, then the asset might be sold by the lender. In essence, it is an opportunity to secure additional financing using the value of what you already have.
Do I require security for a business loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money, however we require a personal guarantee. require the personal guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans of over $150K generally, you can get an individual guarantee and security is provided in the form of charges on assets.