FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ascot Small Business Loans
Tell me what you think of the Ascot Small Business Loans
Ascot unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans refer to an interest rate per annum plus other fees and charges. Our company loan is a cash-based loan and you’ll know ahead of time the total amount to be paid, including any interest, fees or charges. This is then divided into a daily or weekly amount to be paid back.
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 the management of cash flow, company remodeling, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
About larger Ascot Business Loans
What is the Larger Ascot Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be used for?
A Business Loan of a larger size can be used for nearly every business purpose including business remodeling, buying new equipment or inventory, as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. This is as a result of an charge over assets, and may include the registration of this in the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally based rather than stipulating security over a particular asset. The person who signs the ensure is personally liable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR gives priority over personal property to be granted in accordance with the date on which a security interest that is registered.
Caveats are legal form of document to offer an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan of $250,000 or more, we may offer an initial pre-approval to make the process. We might be able to get this done without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial well-being questions. It’s not an offer or guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you might receive could be on different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in just a few minutes, and an experienced company lending specialist will contact you to help you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s License) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent, 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) We can usually offer an answer in just one hour, provided you apply at standard business time and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your banking statement, we’ll offer a decision in as little as 1 company day.
For the Larger Business Loan ($100K to $500K) we could be capable of offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Certain agreements have been approved within just 24 hours.
The most efficient method is to ensure you apply during normal business hours and allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you choose to send us the copies of bank statement, it takes a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) We can usually provide a response in one hour if you submit your request at standard business timings and allow us to use the bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statement, we’ll offer a decision in just an business day.
If you are applying for Larger Business Loans ($100K and up) we may be capable of offer the conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved within just 24 hours.
The most effective method for you to apply is ensure you apply during normal business hours. You can also let us use the advanced bank verification system link to verify your bank information online. If you decide to upload duplicates of your banking statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a certain amount we look at a variety of factors that determine how much we can lend you health for your business and the extent of payments your business can support. The amount you receive from your loan will be contingent on the specifics for your company.
When you submit an application for a particular amount, we will consider a number of aspects to determine the health that is your business as well as the amount of repayments that your business can 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 the cost of a company loan?
If you decide to request business loans with us business loans, we will assess the risk assessment for your company and provide you with a customised offer including loan amount, term and the interest rates. It is a company loan is an upfront priced loan which means you be aware in advance of the total amount payable including any charges, interest rates or fees.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on several factors like the amount of money borrowed, the company assets the funds will be used for, the industry the company operates in, how long the business is in operation as well as whether the company has sufficient cash flow to fund the loan, and the overall well-being or creditworthiness of the company.
What are the cost?
There aren’t any hidden charges with our company loans, and you’ll be aware of the amount you be required to pay and when, from the first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments punctually).
We do not 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. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back all of your advance loan at any time.
If you decide to take this route, please contact our helpful company loan specialists. They’ll provide you with repayment details along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payment in addition to 1.5% of the principal balance plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and knowing how we collect data, process, exchange and secure your information, is of huge importance 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 protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to security for our customers and security. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account details online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner makes use of an asset they own to get the funds for a loan. The asset could be an individual property, such as the family home or an company property like a truck or other piece of machinery.
The vast majority of banks, including the banks with the biggest size, prefer to secure loans against assets. If you have trouble paying back the loan then the asset could be offered for sale by the lender. In essence, it is the process of securing additional financing making use of the value of what you already own.
Do I require security to get a business loan?
For loans up to $150K no asset security is required upfront to access the money However, we require a personal guarantee. need the personal guarantee. If you adhere to the terms of your loan (as stipulated in the loan contract), asset security will never be needed. For loans over $150K generally there is personal ensure and security is provided in the form of the charge of assets.