FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Albert Park Small Business Loans
Tell me more about Albert Park Small Business Loans
Albert Park unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from the traditional business loan?
It is possible to apply to this Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and have the funds on your account within 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. Our company loan is an upfront priced loan and you’ll know ahead of time the total amount to be paid, including any fees, charges or charges. This is then broken down into either weekly or daily installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business reason, such as control of cash flow company improvements, advertising to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
Concerning Larger Albert Park Business Loans
What is the Larger Albert Park Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the company needs to have been trading for at least 3 years and have an annual turnover of at least $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 demonstrate at least 12 months of trading.
How can the funding be utilised?
A Business Loan of a larger size is a great option for almost all business reason, such as business remodeling, buying 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 one that requires security?
Asset security is required to obtain funding above $150,000. This can be done as a result of an charge over assets and can include registration in the PPSR or registering as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally based rather than defining security over a particular asset. The person signing the guarantee is personally liable in the event that the company the borrower fails to pay back 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 permits the priority of personal property assigned according to the date a security interest has been registered.
A caveat is a legal form of document to provide an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans of more than $250K it is possible to offer an initial pre-approval that will help ease the process. We could be able to apply for this without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial well-being questions. It is not an offer or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could have different terms.
The application process
Can I be eligible for funding?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and a dedicated company loan specialist will call you to guide you through the process.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Application details including credit consent twelve months of bank statements, IRD statement as well as the two most recent years’ financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we typically offer an answer within one hour, provided you apply at standard business times and allow us to utilise the bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statement, we’ll offer a decision in just an business day.
For the Larger Business Loan ($100K and up) we might be capable of offer the conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this can be quicker based on the specifics of each application. Certain transactions have received approval within just 24 hours.
The quickest method is to make sure you apply during standard business hours. You can also allow us to use our advance bank verification to instantly check your bank’s information online. If you decide to send us the copies of bank accounts, it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour, provided you make your application in normal business time and you allow us to use the bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements we can provide a decision in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be in a position to provide you with a conditional pre-approval in around six hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however this can be faster depending upon the circumstances for each application. Certain offers have been approved within the space of 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours and allow us to use our modern bank verification to check your bank’s information online. If you opt to upload documents from your account accounts, it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a specific amount we consider a variety of elements for determining your well-being of your company and the extent of the repayments your company is able to afford. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
If you apply for a certain amount, we will consider a number of variables to assess how much we can lend you such as health of your business and the amount of repayments your business can afford. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your company.
Fees & repayments
How do you charge for a company loan?
If you decide to request our company loan, we’ll assess the risk profile for your company and offer you with a tailored proposal that includes the loan amount, the terms and the interest rates. This business loan is a loan that is priced upfront so you will be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What determines the amount I am charged?
Interest rates for business loans rates vary due to factors like the amount of money of money borrowed, the company assets the funds are used to purchase, the industry the business operates in, the long the company has been operating, how long the company has sufficient cash flow to support the loan, and also the overall well-being or financial standing of the company.
What are the costs?
There aren’t any hidden charges for our company loans, and you’ll be aware of the amount you need to pay, and when, from the day you sign up. There’s no compounding 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 get a cash loan with without any upfront costs or commitment to apply.
The Origination Fee includes the expenses 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 loan amount.
Can I pay out the loan in advance?
You can repay all of your advance loan at any time.
If you choose to take this route, please contact our helpful business loan professionals. We will provide you with repayment details along with an early payout estimate. It will be calculated using the total of the principal amount remaining and any accrued interest at the time of early payment and 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
To make sure you do not miss payments and to work your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing how we collect the information we collect, use, share and protect your information, is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard 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 confirm your bank account information online, allowing us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of an asset they own to make the loan. The asset may be an individual asset, such as the family home, or an business asset such as a truck or piece or equipment.
The vast majority of banks, not just the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, the asset might be transferred to the lender. In essence it’s the process of securing additional financing making use of the value of what you already own.
Should I require security to secure a business loan?
For loans up to $150,000 the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. require a personal guarantee. As long as you follow the terms of your loan (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not required. If you take out loans in excess of $150K generally there is personal ensure and security in the form a charge over assets.