FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Regents Park Small Business Loans
Let me know about the Regents Park Small Business Loans
Regents Park unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from an ordinary company loan?
It is possible to apply for this Small Business Loan in under 10 minutes online or over the phone, receive an instant response and have the funds available in just 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. We offer a company loan is a cash-based loan therefore you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. Then, it is broken down into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company 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 reasons.
About Larger Regents Park Business Loans
What is the Larger Regents Park 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 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be operating for a minimum of 3 years, and have an annual income of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funds be used for?
A large company loan can be used for almost every business use, including business renovations, purchase of equipment or inventory as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It’s by way of charge over assets, which could also be registered on the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally in nature rather than stating the security for a particular asset. The person who signs the ensure is personally responsible if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including items or assets). The PPSR permits priority over personal property to be assigned depending on the date that a security interest was registered.
The caveat can be described as a formal document filed to offer an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan that exceeds $250K we can offer a preliminary pre-approval to help smooth out the process. We might be able to get this done without credit checks and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial well-being checks. It is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you are offered could be subject to different terms.
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 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form in just a few minutes, and an experienced business lending specialist will be in touch to assist you.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s Licence), an active NZBN/IRD, and at least six months worth of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Information on the application including credit consent and 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour – as long as you apply within quality company 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 banking statements , we will be able to provide a decision within the span of one business day.
For Larger Business Loans ($100K to $500K) we could be able to provide you with a conditional pre-approval in about six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved in the space of 24 hours.
The fastest way would be to make sure you apply during standard business hours and let us use the modern bank verification to instantly confirm your bank details online. If you choose to send us the copies of bank accounts, it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we can often offer an answer in just one hour – provided you apply at standard business hours and permit us to use the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements, we’ll be able to provide an answer in just one business day.
If you are applying for Larger Business Loans ($100K and up) we might be likely to provide you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be faster depending on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours, and allow us to use our modern bank verification link to instantly verify your bank account information online. If you opt to upload duplicates of your banking accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of aspects in order to assess the health that is your business and the extent of repayments that your company can afford. The amount you receive from your loan will be contingent on the specifics for your company.
When you make an application for a specific amount we will consider a number of factors to determine how much we can lend you such as health of your company and the extent of payments your company can support. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for a business loan?
If you decide to apply for business loans with us company loan, we’ll assess the risk assessment of your business and offer you with a tailored offer including the amount of loan, the term and interest rates. This company loan is a loan that is priced upfront which means you be aware of the total amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I’m charged?
Business loan interest rates depend on several factors including the amount of money borrowed, the business assets the funds are used to purchase, the industry the company is in, how long the business has been in operation and in the event that the business has sufficient cash flow to pay for the loan, and general health or creditworthiness of the company.
What are the fees?
There aren’t any hidden costs for our company loans. You’ll know exactly how much you’ll be required to pay, and when, from day one. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of 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.
Do I have the option of paying off the loan in advance?
You can decide to repay the total amount of your loan early at any time.
If you are deciding to take this route, please call our helpful business loan professionals. They’ll provide you with details on repayment along with an early payout estimate. This will be calculated as the sum of the principal amount remaining and any accrued interest at the date of early payout and 1.5% of the principal remaining and any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss payments and to work your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing the ways we gather, use, exchange and ensure the security of your information is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We utilise a sophisticated banking verification system to immediately 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)?
An asset-based loan is when a business owner utilises an asset that they own to obtain the funds for a loan. The asset can be a personal asset like the family home or an company asset like a truck as well as a piece of machine.
The vast majority of lenders, including the big banks, tend to guarantee loans against an asset. If you are having difficulty paying back the loan, the asset could be transferred to the lender. In essence it is an opportunity to secure new funding using the worth of the asset you already have.
Are I require security to secure a business loan?
For loans that exceed $150K, there is no requirement for asset security upfront to access the money, however we require a personal guarantee. need an individual guarantee. As long as you follow the terms of your loan (as detailed in your loan contract document) the security of assets is not required. If you take out loans in excess of $150,000 generally, there is a personal guarantee and security is provided in the form of charges on assets.