FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Highland Park Small Business Loans
Tell me more about Highland Park Small Business Loans
Highland Park unsecured loans offers 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.
What is the Unsecured Loan different from a traditional business loan?
It is possible to apply to this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and have the funds in your account within 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. Our business loan is a pre-paid loan which means you be aware in advance of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company need, such as control of cash flow company renovations, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal reasons.
About 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 company growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been operating for at least three years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used for almost every business purpose including business renovations, purchase of new equipment or inventory or as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It’s by way of charge against assets, and could include registering this in the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is general in nature rather than specifying security over an asset. The person signing the guarantee is personally accountable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR permits priority over personal property to be granted according to the date the security interest was registered.
The caveat can be described as a formal document filed to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan of $250K or more, we may offer an initial pre-approval to smooth out the process. We could be able to apply for this without a credit check, and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial well-being questions. It is not an offer or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could have different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for an 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)
- must show at least six 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 application process is quick and simple. Just fill out the online application within a couple minutes, and an experienced company expert in lending will call you to guide you through the process.
To apply for up $100,000 you’ll require ID details (valid Driver’s License) and an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer in just one hour if you apply during standard company hours and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statements , we’ll be able to offer an answer in just 1 company day.
If you are applying for a Larger Business Loan ($100K or more) we might be in a position to offer you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based upon the circumstances for each application. Certain transactions have received approval in the space of 24 hours.
The quickest method is to ensure you apply during standard company hours, and permit us to use the modern bank verification to instantly confirm your bank details online. If you opt to upload the copies of bank statements it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour if you apply at standard business time and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statement, we’ll offer an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be in a position to provide the conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval within 24 hours.
The fastest way can be make sure you apply during normal business hours. You can also let us use the advance bank verification to confirm your bank details online. If you decide to upload duplicates of your banking statements, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a specific amount we take into consideration a range of variables to determine how much we can lend you health of the business and the extent of the repayments your company can afford. The amount you receive from your loan will depend on the specific circumstances the business.
When you apply for a certain amount, we consider a variety of aspects to assess the health that is your business and the amount of the repayments your business is able to afford. The total amount of the loan will be determined by the particular circumstances for your company.
Fees & repayments
How much do you charge for a business loan?
When you request one of our company credit, we will assess the risk profile of your company and offer you with a tailored offer that includes the loan amount, the terms and the interest rates. This company loan is an upfront-priced loan therefore you will be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates vary due to factors including the amount borrowed, the business assets the funds are used to purchase, the industry the business operates in, the long the company has been running and how long the business has enough cash flow to fund the loan, and overall health or creditworthiness of the company.
What are the charges?
There are no hidden fees for our business loans, and you’ll know precisely what you’ll need to pay, and when, starting from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing 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 decide to repay the entire amount of the loan at any point in time.
If you are deciding to do this please contact our helpful company credit experts. They’ll provide you with details on repayment and an early payout figure. It will be calculated using the sum of the principal balance plus any accrued interest as of the time of the early payout, plus 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow routine, we offer repayments either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about the ways we gather data, process, exchange and safeguard your data, is of huge importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We use an advanced bank verification system that allows you to instantly verify your bank account information online so we can offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where the company owner utilises assets they own to make a loan. The asset can be either a personal asset like the family home or an company asset such as a vehicle or other piece of machinery.
The vast majority of lenders, including the big banks, tend to secure loans against an asset. If you are having difficulty paying back the loan then the asset could be transferred to the lender. In essence, it is means of securing new financing by using the value of what you already own.
What do I need security to get a company loan?
Up to $150K in loans there is no requirement for asset security in advance to gain access to the funds, however we do require an individual guarantee. So long as you comply with the terms of your loan (as specified in your loan contract document) Asset security will never be required. For loans that exceed $150K, generally, you can get personal ensure and security in the form the charge of assets.