FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Pascoe Vale Small Business Loans
Let me know about the Pascoe Vale Small Business Loans
Pascoe Vale unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
Apply to get this Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and have the funds on your account within 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. The business loan is a loan that is priced upfront and you’ll be aware of the total amount due, which includes the interest, fees and charges. This is then broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost any company reason, such as managing cash flows, business remodels and marketing to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Pascoe Vale Business Loans
What is the Larger Pascoe Vale Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate 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 amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit of this size the company needs to be in operation for at least 3 years, and have an annual income of $700K. It is necessary to be 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 to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A large company loan is a great option for almost every company purpose including company renovations, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It is usually as a result of an charge over assets and can include registration with the PPSR or registering 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 liable in the event that the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR grants preference over private property assigned in accordance with the date on which a security interest was registered.
Caveats are legal document lodged to offer the legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that is greater than $250K, we may offer an initial pre-approval to smooth out the process. It is possible to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial health questions. This is in no way an offer, nor is it a guarantee of funds. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you receive could be subject to different conditions.
Application process
Do I have the right to receive funds?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a few minutes and an experienced company lending specialist will contact you to guide you through the process.
For a loan of up to $100,000 you’ll need 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 require:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within one hour, provided you apply during quality company hours and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statements we can offer an answer within just the span of one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to offer you with a conditional pre-approval within six hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Certain offers have been approved in the space of 24 hours.
The most efficient method can be ensure you apply during normal company hours and permit us to use the modern bank verification to check your bank’s information online. If you upload copies of your bank statements it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we can often offer a response in one hour, provided you submit your request within normal business hours and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statement, we’ll offer a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we could be able to offer you with a conditional pre-approval in around six hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based on the 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. Also, allow us to use our advance bank verification link to verify your bank information online. If you opt to upload duplicates of your banking statements it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of aspects to determine what is the well-being of your business and the extent of the repayments your business can afford. The total amount of your loan will be contingent on the particular circumstances the company.
When you apply for a specific amount we will consider a number of factors to determine the well-being for your company and the amount of repayments your business is able to afford. The total amount of your loan will be contingent on the specific circumstances the company.
Fees & repayments
What is the cost for the cost of a company loan?
When you apply for the business credit, we will assess the risk profile the company and offer you with a customised proposal that includes the loan amount, the terms and the interest rates. This company loan is an upfront priced loan therefore you will be aware of the total amount payable including any interest rates, fees or charges.
What determines the amount I’m charged?
The interest rates on business loans rates differ based on various factors such as the amount that is borrowed, what business assets the funds will be used for in addition to the industry that the business is in, how long the company has been running and how long the company has sufficient cash flow to fund the loan, and general health and creditworthiness of the company.
What are the costs?
There aren’t any hidden costs for our company loans, and you’ll be aware of the amount you’ll be required to pay and when, right from the very first day. There’s no compounding and the loan comes with no additional fees (as as you make your payments on time).
We do not charge an Application Fee. You can apply for a loan with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan in advance?
You may choose to pay back the total amount of your loan early at any time.
If you decide to do this please talk to one of our helpful business lending specialists. They will offer you with details for repayment and an early payment figure. This will be calculated as the total of the principal remaining and the accrued interest up to the time of the early payout and 1.5 percent of the remaining principal as well as any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow schedule, we provide repayments either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about how we collect, use, exchange and ensure the security of your information is crucial and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our clients and security. We use an advanced banking verification system to immediately verify your bank account details online to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a company owner borrows from an asset they own to obtain a loan. The asset can be either a personal asset like the family home, or a business property like a truck or piece of equipment.
The vast majority of banks, even the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan, your assets could be transferred to the lender. In essence it’s the process of securing new funding using the value of what you already own.
What do I need security to get an business loan?
For loans up to $150,000 the requirement for asset security is not required in advance to gain access to the funds, however we do require the personal guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally there is a personal guarantee and security in the form of a charge over assets.