FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Parkwood Small Business Loans
Tell me what you think of the Parkwood Small Business Loans
Parkwood unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from a traditional company loan?
You can apply for your Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and the funds could be in your account in 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. This business loan is a loan that is priced upfront therefore you’ll know in advance the total amount due, which includes the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company use, including managing cash flows, company renovations, marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available for personal reasons.
Concerning Larger Parkwood Business Loans
What is the Larger Parkwood Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as 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 any business purpose including company renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It is usually in the form of a charge over assets, and may include registration with the PPSR or filing as a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature rather than stipulating security over an asset. The person signing the ensure is personally accountable if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal document filed to provide the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger company loans of $250K or more, we may offer an initial pre-approval to make the process. It is possible 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 assessment, which involves you answering some financial health questions. It’s in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you might receive could be subject to different terms.
Application process
Do I qualify for funds?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a couple minutes, and an experienced company lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically offer a response in one hour, provided you apply within standard company timings and permit us to use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements we can provide the decision in just an business day.
If you are applying for a Larger Business Loan ($100K and up) we may be in a position to offer the conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Certain offers have been approved within 24 hours.
The most effective method is to ensure you apply during standard business hours and permit us to use the advance bank verification to verify your bank account information online. If you decide to upload the copies of bank statement, it will take a little 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 if you apply during standard business time and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statements, we are able to offer a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to offer you with conditional pre-approval in about six hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some transactions have received approval in 24 hours.
The fastest method can be make sure you apply during normal business hours. You can also permit us to use the advance bank verification to instantly verify your bank information online. If you send us copies of your bank statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we will consider a number of elements in order to assess what is the health that is your business and the amount of the repayments your company can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
When you submit an application for a certain amount, we take into consideration a variety of aspects to determine your well-being for your business and the level of the repayments your company will be able to support. The total amount of your loan will be determined by the specifics for your company.
Fees & repayments
How much do you charge for an business loan?
When you apply for one of our company loans, we will assess the risk profile the company and offer you with a customised offer, including the amount of the loan, the duration and interest rates. This company loan is an upfront-priced loan therefore you will know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates differ based on various factors such as the amount that is borrowed, what company assets the money are used to purchase, the industry the company is operating in, how long the business is in operation and what percentage of the business has sufficient cash flow to cover the loan, and also the overall well-being as well as creditworthiness business.
What are the cost?
There are no hidden fees with our business loans, and you’ll know exactly how much you’ll need to pay, and when, starting from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans with with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back the total amount of your loan in full at any time.
If you are deciding to take this route, please speak to our friendly business loan professionals. They’ll provide you with details on repayment as well as an early payout amount. This will be calculated as the sum of the principal amount remaining and any accrued interest at the date of early payout in addition to 1.5 percent of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To ensure you do not miss due dates and also to be in line with your cash flow routine, we provide repayments either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being upfront about the ways we gather the information we collect, use, share and secure your information, is of huge importance and is a crucial 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 standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to security for our customers and security. We make use of an advanced bank verification system to immediately verify your bank account details online so we can offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an company owner makes use of an asset they own to make the loan. The asset can be either an asset belonging to the personal, like the family home, or a company asset such as a truck or piece or equipment.
The majority of banks, not just the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, the asset could be offered for sale by the lender. In essence it’s means of securing additional financing taking advantage of the value of what you already have.
What do I require security for a business loan?
Up to $150K in loans it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. require a personal guarantee. If you adhere to the terms of your loan (as detailed in the loan contract) Asset security is not required. If you take out loans in excess of $150,000 generally there is an individual ensure and security in the form an asset charge.