FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Erskineville Small Business Loans
Tell me more about Erskineville Small Business Loans
Erskineville unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
You can apply to this Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and have the funds in your account within 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. This business loan is a pre-paid loan so you will know ahead of time the total amount to be paid, including any fees, interest or charges. This is then broken down into either a daily or weekly repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business use, including control of cash flow company remodeling, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
About the Larger Erskineville Business Loans
What is the Larger Erskineville Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly to work with 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?
In order to be eligible for a loan of this size the business needs to have been trading for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly all business purpose including company remodeling, buying equipment or inventory or as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. This can be done as a result of an charge against assets, which could also include registration with the PPSR or filing as a caveat.
A personal or director’s guarantee is a promise to pay back a loan that 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 repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR grants preference over private property granted according to the date a registration of a security interest.
An affidavit is an official document that is filed to provide notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan of $250K or more we may be able to provide an initial pre-approval in order to make the process. We might be able to do this without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering a few financial well-being questions. It’s not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you may receive may be subject to different terms.
Application process
Do I qualify for funds?
You may 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)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a couple minutes, and an experienced company 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), an active NZBN/IRD, and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$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 – $500K: Application details including credit consent, 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we usually offer an answer in just one hour if you submit your request during standard business times and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your banking statements , we are able to offer a decision within 1 company day.
For the Larger Business Loan ($100K up to $500,000) we might be able to provide you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Some transactions have received approval in 24 hours.
The fastest way can be make sure you apply during standard company hours. You can also allow us to use our advance bank verification to instantly confirm your bank details online. If you decide to upload duplicates of your banking statements it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we can often offer a response in one hour, provided you make your application at standard business hours and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements, we will be able to provide a decision within one business day.
For the Larger Business Loans ($100K to $500K) We may be capable of offer you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some offers have been approved within the space of 24 hours.
The fastest way can be make sure you apply during normal business hours and permit us to use the advance bank verification link to instantly check your bank’s information online. If you upload copies of your bank statements, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a certain amount we will consider a number of variables that determine what is the well-being of your company and the extent of the repayments your business will be able to support. The amount you receive from your loan will be contingent on the specifics for your company.
When you make an application for a set amount, we take into consideration a variety of aspects to determine your health for your business and the level of the repayments your business can afford. The amount you receive from your loan will depend on the particular circumstances the company.
Fees & repayments
How do you charge for an business loan?
When you apply for business loans with us company loan, we will assess the risk profile the business and offer you with a customised proposal that includes the loan amount, the terms and interest rates. It is a business loan is an upfront-priced loan so you will be aware of the total amount payable including any charges or interest.
What is the basis for the rate I’m charged?
The interest rates on business loans rates depend on a variety of factors like the amount of money borrowed, what company assets the money will be used for, the industry the company operates in, how long the business is in operation, in the event that the business has sufficient cash flow to pay for the loan, and general health as well as creditworthiness company.
What are the charges?
There aren’t any hidden costs with our business loans. You’ll be aware of the amount you need to pay, and when, starting from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We do not charge an application fee. You can get a cash loan with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan early?
You can choose to repay the entire amount of your loan early at any time.
If you do decide to pursue this option, please contact our helpful business lending professionals. The professionals will provide you with the details of your repayment and an early payout figure. The figure will be calculated as the sum of the principal amount remaining and accrued interest to the date of early payout and 1.5 percent of the remaining principal as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payment dates and to align with your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being upfront about the ways we gather the information we collect, use, share and safeguard your data, is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We employ an exceptionally sophisticated bank verification system to instantly verify the bank account details online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner uses an asset that they own to obtain a loan. The asset may be an individual property, such as the family home, or an company asset like a truck or other piece of machinery.
The vast majority of banks, not just the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan, the asset could be sold by the lender. In essence, it is the process of securing additional financing making use of the value of what you already own.
Should I need security to get an business loan?
For loans of up to $150K, the requirement for asset security is not required prior to the loan’s access but we require a personal guarantee. require a personal guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract), asset security will never be required. If you take out loans in excess of $150,000 typically, you will need a personal guarantee and security that is in the form a charge over assets.