FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Albert Park Small Business Loans
Let me know what you think of the Albert Park Small Business Loans
Albert Park unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from an traditional company loan?
You can apply for your Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and the funds could be in your account in 24 hours. Traditional company loans refer to an interest rate per annum together with additional fees and charges. The company loan is a cash-based loan so you will know in advance the total amount payable including any fees, interest or charges. Then, it is broken down into either a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business purpose including the management of cash flow, business remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used to fund personal expenses.
About the Larger Albert Park Business Loans
What is the Larger Albert Park Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your company needs to have been operating for a minimum of 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funds for?
A larger business loan can be used for almost every business reason, such as business renovations, to purchase equipment or inventory as well as for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. This can be done as a result of an charge against assets, and may be registered with the PPSR or making a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is generally in nature rather than stating security over a particular asset. The person signing the ensure is personally responsible if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including objects or assets). The PPSR allows preference over private property granted in accordance with the date on which a security interest that is registered.
A caveat is a legal document that is filed to offer the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan that is greater than $250,000 we may be able to provide an initial pre-approval to simplify the process. We may be able to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial health questions. This is not an offer or guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you receive could be based on different conditions.
The application process
Can I be eligible for funding?
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, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a few minutes and a dedicated company lending specialist will contact you to assist you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License), a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details including credit consent, 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer in just one hour if you apply at standard business times and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements we can offer an answer within 1 business day.
For Larger Business Loans ($100K and up) we might be in a position to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Certain agreements have been approved in 24 hours.
The most efficient method can be make sure you apply during standard company hours. You can also permit us to use the modern bank verification to verify your bank information online. If you upload copies of your bank statements , it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we typically provide an answer within one hour – provided you apply at standard business timings and you allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your banking statements, we are able to provide a decision within 1 business day.
For the Larger Business Loans ($100K and up) we may be capable of provide you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain deals have been approved in 24 hours.
The fastest way is to ensure you apply during normal business hours. You can also allow us to use the advance bank verification to check your bank’s information online. If you choose to upload documents from your account statements it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a specific amount we take into consideration a range of elements that determine the well-being that is your business and the amount of repayments your business can support. The amount you receive from the loan will be determined by the specifics that are unique to your company.
When you submit an application for a particular amount, we will consider a number of factors to assess the well-being that is your company as well as the amount of repayments your business can afford. The total amount of your loan will depend on the specifics of your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for the business loans, we’ll assess the risk assessment for your business and provide you with a customised offer that includes the amount of the loan, the duration and the interest rates. It is a company loan is an upfront priced loan and you’ll be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I am charged?
The interest rates on company loans rates vary due to factors including the amount borrowed, what business assets the funds are used to purchase in addition to the industry that the business operates in, the long the company has been running, how long the company has enough cash flow to fund the loan, and general well-being as well as creditworthiness company.
What are the cost?
There aren’t any hidden charges with our business loans, and you’ll know exactly how much you’ll need to pay and when, from the day you sign up. There’s no compounding and no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You can request a credit loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay out the loan early?
You can decide to repay all of your advance loan at any time.
If you choose to take this route, please speak to our friendly company lending experts. The experts will provide you with details for repayment and an early payout figure. It will be calculated using the sum of the remaining principal amount plus any accrued interest as of the time of early payout in addition to 1.5 percent of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work with your cash flow standard, we offer repayments that are either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear the ways we gather data, process, exchange and protect 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 make use of industry-standard encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We use an advanced bank verification system link to instantly verify the bank account details online to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner uses an asset they own to make the funding. The asset can be an individual asset, such as the family home, or a business property like a truck or other piece of machinery.
The majority of the lenders not just the big banks, tend to make loans secured by an asset. If you have trouble paying back the loan then the asset could be offered for sale by the lender. In essence it is means of securing new financing taking advantage of the value of what you already own.
What do I need security for an business loan?
For loans of up to $150,000, it is not necessary to secure assets prior to the loan’s access but we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as specified in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans of over $150K generally, there is an individual guarantee and security that is in the form the charge of assets.