FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Ellerslie Small Business Loans
Let me know how you are able to avail the Ellerslie Small Business Loans
Ellerslie unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional business loan?
It is possible to apply for your Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and the funds could be in your account within 24 hours. Traditional company loans have an annual interest rate plus other fees and charges. We offer a business loan is a pre-paid loan so you will be aware in advance of the total amount due, which includes any fees, interest or charges. Then, it is divided into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company reason, such as cash flow management, company renovations, marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
About Larger Ellerslie Business Loans
What is the Larger Ellerslie Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How’s 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 be eligible for a loan that is this large, your company needs to have been operating for at least three years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost any company purpose including business renovations, to purchase inventory or new equipment for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It is usually by way of charge against assets, and could include the registration of this with the PPSR or making a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature, rather than defining the security for a particular asset. The person who is signing the ensure is personally liable if the company creditor is unable to repay 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 that are registered for personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned according to the date a security interest that is registered.
A caveat is a legal form of document to provide the legal claim to 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 a preliminary pre-approval to help make the process. We could be able to get this done without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial well-being checks. This is not an offer of credit or guarantee of financing. A conditional approval is subject a full credit assessment and any offer you receive could be on different conditions.
Application process
Can I be eligible for funding?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and an experienced company expert in lending will call you to assist you.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details for application including credit consent, 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within one hour, provided you apply within quality company timings and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statement, we’ll offer an answer in just an business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be in a position to provide you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Some deals have been approved within the space of 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours. Also, allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you decide to send us copies of your bank statements it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we usually provide an answer in just one hour – as long as you make your application in normal business time and let us make use of the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statement, we’ll provide a decision within the span of one business day.
For the Larger Business Loans ($100K and up) we may be able to offer the conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Some offers have been approved within less than 24 hours.
The quickest method is to make sure you apply during standard business hours, and permit us to use the advance bank verification to instantly check your bank’s information online. If you decide to send us documents from your account statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a particular amount, we look at a variety of variables that determine how much we can lend you well-being that is your company and the extent of payments your company will be able to support. The amount you receive from your loan will depend on the specifics that are unique to your company.
When you submit an application for a set amount, we take into consideration a variety of variables to determine your health of your company as well as the amount of repayments your company can afford. The total amount of your loan will be contingent on the particular circumstances the business.
Fees & repayments
What is the cost for an business loan?
When you request business loans with us company credit, we’ll assess the risk assessment the company and offer an individualised offer, including the amount of loan, the term and the interest rates. The business loan is an upfront priced loan therefore you will be aware of the total amount due, which includes any charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for company loans rates depend on several factors like the amount of money of money borrowed, the company assets the funds are used to purchase as well as the field the business is in, how long the company has been running for, what percentage of the business has enough cash flow to fund the loan, and also the overall health and creditworthiness of the business.
What are the charges?
There are no hidden costs for our business loans, and you’ll know precisely what you’ll need to pay and when, starting from the first day. There’s no compounding interest and no extra fees (as long as you are able to 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 obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of your loan in full at any time.
If you choose to pursue this option, please call our helpful business lending experts. The professionals will provide you with details on repayment and an early payout figure. It will be calculated using the sum of the principal amount remaining plus any accrued interest as of the time of early payout and 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To ensure you do not miss due dates and also to be in line with your cash flow cycle we offer repayments either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about how we collect data, process, exchange and protect your information, 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 secure your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We make use of an advanced banking verification system to instantly confirm your bank account information online, allowing us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner makes use of an asset that they own to secure the funding. The asset can 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 lending institutions, including the big banks, tend to guarantee loans against assets. If you have trouble paying back the loan then your assets could be transferred to the lender. In essence, it’s means of securing new financing by making use of the value of what you already have.
Should I require security for an company loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. need a personal guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract) and you are able to meet your obligations, asset security is not required. For loans that exceed $150K, generally there is personal ensure and security in the form of an asset charge.