FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Ellerslie Small Business Loans
Let me know about the Ellerslie Small Business Loans
Ellerslie unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from an ordinary business loan?
You can apply to this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an instant response and the money could be on your account within 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. Our company loan is a pre-paid loan and you’ll know ahead of time the total amount due, which includes any fees, charges or charges. This is then divided into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company purpose including control of cash flow company remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available to fund personal expenses.
Concerning Larger Ellerslie Business Loans
What is the Larger Ellerslie Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to be in operation for at least 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly any company purpose including business renovations, to purchase equipment or inventory, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. It is usually by taking a charge on assets, which could also include the registration of this through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to repay a loan which is generally in nature rather than defining the security of a specific asset. The person signing the guarantee is personally liable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR gives the priority of personal property assigned according to the date the security interest has been registered.
An affidavit is an official document that is filed to offer the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan of $250K or more, we may offer an initial pre-approval that will help make the process. We may be able to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes you answering a few financial health questions. This is not an offer or guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you may receive may have different conditions.
The application process
Are I eligible for funding?
You can 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)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a few minutes and an experienced business lending specialist will be in touch to help you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also 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: Information on the application including credit consent as well as 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K and up) We can usually provide an answer in just one hour if you make your application during quality business timings and permit us to utilise the bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statement, we’ll offer an answer in just an company day.
For the Larger Business Loan ($100K or more) we could be able to offer the conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be quicker based on the specifics of each application. Some transactions have received approval within 24 hours.
The quickest method would be to make sure you apply during normal business hours. Also, allow us to use our advance bank verification to confirm your bank details online. If you choose to send us documents from your account statement, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we can often offer an answer in just one hour – provided you apply within standard business timings and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll provide a decision within the span of one business day.
For Larger Business Loans ($100K and up) we might be able to offer the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Certain transactions have received approval in 24 hours.
The most efficient method is to ensure you apply during normal business hours, and allow us to use the sophisticated bank verification to instantly confirm your bank details online. If you choose to send us the copies of bank statements it may take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a certain amount we consider a variety of elements in order to assess your well-being of the company and the level of payments your business is able to afford. The amount you receive from your loan will be contingent on the specific circumstances for your company.
If you apply for a specific amount we will consider a number of factors to determine the well-being that is your company as well as the amount of payments your company will be able to support. The total amount of your loan will be contingent on the specific circumstances that are unique to your company.
Fees & repayments
What is the cost for a business loan?
When you request our business credit, we will assess the risk profile the business and provide you with a customised offer, including loan amount, term and interest rates. The business loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including any costs, fees, or interest rates.
What determines the rate that I am charged?
The interest rates on business loans rates differ based on various factors such as the amount that is borrowed, what company assets the money are used to purchase, the industry the business is operating in, how long the business has been operating, how long the company has sufficient cash flow to pay for the loan, and the overall health and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs with our business loans, and you’ll be aware of the amount you need to pay, and at what time, from the very first day. There’s not any compounding interest and no extra fees (as as you make your payments on time).
We don’t charge an application fee. You are able to apply for a loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan early?
You can repay the entire amount of the loan at any point in time.
If you do decide to take this route, please contact our helpful business credit professionals. They will provide you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal remaining plus any accrued interest as of the date of early payout, plus 1.5 percent of the principal balance plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payment dates and to align with your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about the ways we gather, use, exchange and ensure the security of your information is of paramount importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial and other 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 link to immediately confirm your bank account information online to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner borrows from assets they own to make the funds for a loan. The asset can be either an asset belonging to the personal, like the family home or an business property like a truck or other piece of machinery.
The vast majority of banks, not just the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan, then your asset may be taken over by the lender. In essence, it’s the process of securing new financing making use of the value of what you already have.
What do I need security for a business loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money but we do need the personal guarantee. If you adhere to the loan terms (as detailed in the loan contract) Asset security is not needed. For loans over $150,000 typically, you will need the option of a personal guarantee and security is provided in the form of charges on assets.