FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Carole Park Small Business Loans
Tell me about the Carole Park Small Business Loans
Carole Park unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from a traditional company loan?
You can apply to the Small Business Loan in under 10 minutes by phone. You will receive a same day response and funds may be in your account in 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. The company loan is an upfront priced loan therefore you’ll be aware of the amount you will have to pay, including any fees, charges or charges. This is then broken down into weekly or daily repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company need, such as the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal purposes.
Concerning Larger Carole Park Business Loans
What is the Larger Carole Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been operating for a minimum of 3 years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A larger business loan is a great option for almost any business reason, such as business renovations, purchase of new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. It’s as a result of an charge over assets, which could also be registered with the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to repay a loan which is generally in nature rather than specifying security over an asset. The person who signs the guarantee is personally liable in the event that the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR allows preference over private property granted according to the date the security interest that is registered.
A caveat is a legal form of document to provide the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval to make the process. It is possible to apply for this without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial well-being questions. This is not an offer or guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you may receive may be on different terms.
The application process
Are I eligible for funding?
You are eligible to apply for a business 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)
- can demonstrate at least 6 months’ worth of transactions (for the 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 fast and simple. Just fill out the online application within a couple minutes, and an experienced business expert in lending will be in touch to guide you.
To apply for up $100,000 you’ll require identification details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statement, last 2 years finalised financial statements, and interim current financial year financials, Aged Payables and Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within one hour, provided you make your application during quality company time and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your bank statements we can offer the decision in as little as one business day.
For Larger Business Loans ($100K to $500K) we may be likely to provide you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved within just 24 hours.
The fastest way would be to ensure you apply during normal business hours. Also, permit us to use the advanced bank verification system to instantly verify your bank account information online. If you choose to send us the copies of bank statements it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we typically offer a response in one hour if you apply within normal business times and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we are able to provide a decision in just 1 business day.
For the Larger Business Loans ($100K to $500K) We may be able to provide the conditional pre-approval within six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The fastest method is to ensure you apply during standard business hours, and let us use the sophisticated bank verification link to verify your bank information online. If you choose to send us copies of your bank statements it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a particular amount, we look at a variety of aspects that determine your health of the company as well as the amount of the repayments your company will be able to support. The total amount of your loan will depend on the particular circumstances of your business.
If you apply for a specific amount we take into consideration a variety of elements to assess your well-being of the business and the level of repayments that your company can afford. The total amount of your loan will be contingent on the particular circumstances for your business.
Fees & repayments
How do you charge for a company loan?
If you decide to request business loans with us company credit, we’ll assess the risk profile the company and provide you with a customised proposal that includes the loan amount, the terms and interest rates. This company loan is an upfront-priced loan which means you know in advance the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I pay?
Business loan interest rates depend on several factors including the amount borrowed, what business assets the funds will be used for in addition to the industry that the business operates in, how long the company has been running, whether the business has enough cash flow to pay for the loan, as well as the overall well-being and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs with our business loans. You’ll know precisely how much it is that you be required to pay and when, starting from day one. There’s no compounding and no extra fees (as as you make your payments on time).
We do not charge an Application Fee. You are able to make an application for loans with without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of 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 amount of loan.
Can I pay out the loan earlier?
You can choose to repay all of your loan at any point in time.
If you are deciding to pursue this option, please call our helpful company loan experts. We will provide you with repayment details and an early payout figure. This will be calculated as the sum of the principal balance and accrued interest to the time of the early payout plus 1.5% of the remaining principal plus any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss due dates and also to be in line with your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from your business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being upfront about how we collect, use, exchange and ensure the security of your information is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We utilise a sophisticated bank verification system that allows you to instantly confirm your bank account information online to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the company owner makes use of the assets they have to make the funding. The asset could be a personal asset like the family home, or it could be a business asset such as a truck as well as a piece of machine.
The vast majority of the lenders not just the largest banks, are inclined to secure loans against assets. If you’re having trouble paying back the loan then the asset could be offered for sale by the lender. In essence it’s the process of securing new financing by taking advantage of the value of what you already have.
Do I need security to secure a business loan?
For loans up to $150K the requirement for asset security is not required before you are able to access the money However, we do need an individual guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract) the security of assets will never be required. If you take out loans in excess of $150,000 generally, you are able to get an individual guarantee and security in the form of charges on assets.