FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Highland Park Small Business Loans
Let me know more about Highland Park Small Business Loans
Highland Park unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from the traditional business loan?
You can apply for the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and have the funds available in just 24 hours. Traditional business loans reference an annual rate of interest together with additional fees and charges. Our business loan is an upfront priced loan so you will know ahead of time the amount you will have to pay, including any fees, interest or charges. Then, it is divided into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business reason, such as cash flow management, business remodeling, marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Highland Park Business Loans
What is the Larger Highland Park Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been in operation for at least 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funds for?
A large company loan is a great option for almost every company purpose including business improvements, purchasing equipment or inventory as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This can be done by way of charge over assets, which could also include the registration of this on the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature, rather than specifying security over a particular asset. The person who signs the guarantee is personally liable in the event that the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR permits the priority of personal property granted depending on the date that a registration of a security interest.
A caveat is a legal document that is filed to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval to smooth out the process. We might be able to apply for this without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being questions. It’s not an offer or guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you might receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Just complete the online application within a few minutes and a dedicated company lending specialist will call you to guide you.
To be eligible for up to $100,000 you’ll need the right identification documents (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Information on the application including credit consent twelve month bank accounts, the IRD statements, last 2 years finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour – as long as you make your application within quality company timings and let us utilise the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statements , we are able to provide an answer in just the span of one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be able to offer you with pre-approval conditional to your application in around six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be quicker based on the circumstances of each application. Some deals have been approved within 24 hours.
The quickest method is to make sure you apply during normal business hours and allow us to use the advance bank verification to instantly verify your bank information online. If you opt to send us documents from your account statement, it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we usually provide an answer within one hour if you make your application in standard business time and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements, we are able to provide the decision within 1 business day.
For the Larger Business Loans ($100K up to $500,000) we may be able to offer the conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some deals have been approved in 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, let us use the sophisticated bank verification link to instantly confirm your bank details online. If you choose to upload the copies of bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of aspects that determine the well-being of the business and the level of the repayments your business can support. The amount you receive from your loan will depend on the specifics the company.
If you apply for a particular amount, we will consider a number of factors to assess your well-being that is your business and the extent of repayments your business is able to afford. The amount you receive from your loan will be determined by the specific circumstances the business.
Fees & repayments
How much should you charge for the cost of a business loan?
When you request business loans with us company credit, we’ll assess the risk assessment for your company and provide you with a tailored offer, including the loan amount, the terms and the interest rates. A business loan is a loan that is priced upfront therefore you will be aware of the total amount to be paid, including any charges or interest.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates differ based on various factors including the amount that is borrowed, what company assets the money will be used for as well as the field the business operates in, how long the company has been running, what percentage of the company has enough cash flow to support the loan, and general well-being as well as creditworthiness company.
What are the cost?
There are no hidden costs with our company loans. You’ll know precisely what it is that you need to pay and when, from the very first day. There’s no compounding and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an Application Fee. You can request a credit loan with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan earlier?
You may choose to pay back the entire amount of the loan early at any time.
If you do decide to pursue this option, please speak to our friendly business credit experts. The specialists will provide you with details for repayment along with an early payout estimate. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of early payout in addition to 1.5% of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about how we collect the information we collect, use, share and secure your information, is vital 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 secure your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner utilises an asset they own to secure the funds for a loan. The asset can be an individual asset, such as the family home or a company asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, including the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan then the asset might be taken over by the lender. In essence it’s means of securing new financing using the value of what you already own.
Are I need security to secure a business loan?
For loans that exceed $150,000, there is no requirement for asset security upfront to access the money However, we require a personal guarantee. need the personal guarantee. As long as you follow the loan terms (as stated in your loan contract document) Asset security will never be needed. For loans that exceed $150K, typically, you will need personal guarantee and security that is in the form the charge of assets.