FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Ardmore Small Business Loans
Let me know what you think of the Ardmore Small Business Loans
Ardmore unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from an traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and the money could be in your account within 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. We offer a business loan is a cash-based loan so you will know ahead of time the amount you will have to pay, including any interest, fees or charges. Then, it is divided into weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company need, such as the management of cash flow, business remodeling, marketing to purchase inventory, new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
About the Larger Ardmore Business Loans
What is the Larger Ardmore Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to be trading for at least 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funding for?
A larger business loan is a great option for almost all company need, including business improvements, purchasing equipment or inventory for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. This can be done as a result of an charge over assets and can include the registration of this in the PPSR or registering as a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature rather than defining security over a particular asset. The person signing the ensure is personally liable in the event that the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date the registration of a security interest.
An affidavit is an official form of document to offer the legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger business loans that is greater than $250K we may be able to provide an initial pre-approval that will help make the process. It is possible to get this done without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial health questions. It 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 have different conditions.
The application process
Do I qualify for funds?
You may be eligible for a business 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 transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Complete the online form in few minutes and a dedicated company expert in lending will be in touch to help you.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s License), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent as well as 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often offer an answer within an hour, provided you make your application at standard business hours and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we are able to offer an answer in just an company day.
For Larger Business Loans ($100K up to $500,000) we could be likely to offer the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within 24 hours.
The quickest method can be make sure you apply during normal company hours and allow us to use the advance bank verification link to verify your bank information online. If you send us duplicates of your banking statements it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we typically provide a response in one hour if you submit your request in standard business time and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we will be able to provide an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be capable of offer you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Some transactions have received approval in just 24 hours.
The most effective method is to ensure you apply during normal business hours and allow us to use our advanced bank verification system to instantly verify your bank account information online. If you upload documents from your account statement, it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a particular amount, we look at a variety of variables to determine how much we can lend you well-being of your company and the amount of the repayments your company can afford. The amount you receive from the loan will be determined by the specifics of your business.
When you make an application for a set amount, we look at a range of aspects to determine how much we can lend you such as health that is your business and the extent of the repayments your company can support. The total amount of your loan will depend on the particular circumstances of your company.
Fees & repayments
How much do you charge for an business loan?
If you decide to request business loans with us business credit, we will assess the risk assessment the business and provide an individualised offer including the amount of the loan, the duration and the interest rates. The company loan is an upfront-priced loan which means you know in advance the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I pay?
Interest rates for business loans rates depend on several variables like the amount to be borrowed, what company assets the funds are used to purchase as well as the field the company is operating in, how long the company has been operating for, in the event that the business has sufficient 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 business loans, and you’ll know exactly how much you’ll need to pay and when, from the very 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 apply for a loan with without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan in advance?
You can decide to repay the total amount of your loan at any point in time.
If you choose to do this please speak to our friendly company loans experts. The experts will offer you with details for repayment and an early payout figure. It will be calculated using the total of the remaining principal amount plus any accrued interest as of the time of early payout and 1.5% of the principal balance plus any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear how we collect data, process, exchange and ensure the security of your information is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We utilise a sophisticated bank verification system link to instantly verify your bank account information online to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an business owner utilises assets they own to obtain the funds for a loan. The asset may be an individual property, such as the family home, or a company property like a truck or other piece of machinery.
The vast majority of lending institutions, not just the big banks, tend to secure loans against an asset. If you are having difficulty paying back the loan, your asset may be taken over by the lender. In essence it’s a way of securing new funding taking advantage of the value of what you already own.
Are I require security to get a business loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money but we do need an individual guarantee. As long as you follow the terms of your loan (as detailed in the loan contract) the security of assets is not required. For loans that exceed $150,000, generally, there is personal ensure and security in the form an asset charge.