FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Elderslie Small Business Loans
Let me know more about Elderslie Small Business Loans
Elderslie unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an traditional company loan?
The application for your Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and funds may be available in just 24 hours. Traditional company loans refer to an interest rate per annum plus other fees and charges. We offer a business loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount due, which includes any fees, charges or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company use, including control of cash flow business remodels and marketing to purchase inventory, new equipment, for general working capital and so much more. The loan is not available to fund personal expenses.
About the Larger Elderslie Business Loans
What is the Larger Elderslie 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 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit of this size, your business needs to be in operation 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) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be utilised?
A larger company loan can be used for nearly any business use, including company 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 one that requires security?
Asset security is necessary for funding of more than $150,000. This is by way of charge over assets, and may include the registration of this on the PPSR or making a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally based rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally liable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR grants the priority of personal property assigned in accordance with the date on which a registration of a security interest.
Caveats are legal document lodged to offer the legal claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250K, we may offer an initial pre-approval that will help ease the process. We may be able to do this without a credit check and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial health checks. It’s not an offer or guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you might receive could be based on different conditions.
The application process
Are I eligible for funding?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three 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 within a few minutes and an experienced company loan specialist will call you to assist you.
To apply for up to $100,000 you’ll need identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Application details including credit consent as well as 12 months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we usually provide an answer within an hour – as long as you make your application at quality company hours and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements we can provide the decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be in a position to provide you with a conditional pre-approval in around six hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Some offers have been approved in 24 hours.
The fastest way can be ensure you apply during normal company hours. Also, let us use the modern bank verification to check your bank’s information online. If you choose to send us copies of your bank statements it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) We can usually provide an answer in just one hour – as long as you submit your request during normal business time and you allow us to use the bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statements we can offer a decision within an business day.
If you are applying for Larger Business Loans ($100K and up) We may be able to provide you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The fastest way is to make sure you apply during standard business hours and allow us to use the sophisticated bank verification to instantly check your bank’s 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 the loan amount between $5,000 to $500,000. When you make an application for a certain amount we look at a variety of factors to determine how much we can lend you health of the business and the extent of payments your business can support. The total amount of the loan will be determined by the particular circumstances the company.
If you apply for a certain amount, we look at a range of aspects to determine your health of the company and the extent of the repayments your company will be able to support. The total amount of your loan will depend on the specific circumstances that are unique to your business.
Fees & repayments
What is the cost for a business loan?
When you apply for business loans with us business loans, we will assess the risk assessment that you have for your business and provide you with a customised proposal that includes the loan amount, the terms and interest rates. A business loan is an upfront-priced loan which means you be aware of the total amount due, which includes any charges or interest.
What determines the rate that I am charged?
Interest rates for company loans rates depend on several variables like the amount to be borrowed, the company assets the money will be used for, the industry the business operates in, the long the company is in operation for, what percentage of the company has enough cash flow to cover the loan, and the general health as well as creditworthiness company.
What are the costs?
There are no hidden fees with our business loans. You’ll know precisely how much you need to pay, and when, starting from the very first day. There’s no compounding interest, and no extra fees (as long as you make your payments in time).
We do not charge an Application Fee. You are able to request a credit loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan in advance?
You can decide to repay the entire amount of your loan early at any time.
If you choose to do this please talk to one of our helpful business loans professionals. We will offer you with details on repayment as well as an early payout amount. It will be calculated using the total of the principal balance and the accrued interest up to the time of the early payout plus 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
To ensure you do not miss payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about how we collect the information we collect, use, share and secure your information, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We use an advanced bank verification system that allows you to immediately confirm your bank account information online so we can provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an business owner makes use of an asset they own to get the funds for a loan. The asset could be an individual asset, such as the family home, or a company asset such as a truck or other piece of machinery.
The vast majority of the lenders not just the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan then your assets could 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.
Do I need security to secure a business loan?
Up to $150K in loans the requirement for asset security is not required in advance to gain access to the funds, however we do need an individual guarantee. In the event that you fulfill the loan terms (as specified in your loan contract), asset security will never be needed. For loans that exceed $150,000, generally, there is a personal guarantee and security in the form of an asset charge.