FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Ellenbrook Small Business Loans
Let me know more about Ellenbrook Small Business Loans
Ellenbrook unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from a traditional business loan?
Apply for your Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and the funds could be in your account within 24 hours. Traditional business loans have an annual rate of interest along with other charges and fees. We offer a business loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including any fees, interest or charges. Then, it is broken down into weekly or daily installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business need, such as the management of cash flow, business renovations, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal use.
Concerning Larger Ellenbrook Business Loans
What is the Larger Ellenbrook Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to have been trading for at least 3 years with 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 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can the funds be used for?
A Business Loan of a larger size can be used for almost every company need, including business improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It is usually as a result of an charge over assets and can include the registration of this in the PPSR or making a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature rather than stating security over an asset. The person who signs the guarantee is personally responsible if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including items or assets). The PPSR gives priority over personal property to be assigned in accordance with the date on which a security interest was registered.
A caveat is a legal document that is filed to offer an official notice of a claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan of $250K or more it is possible to offer an initial pre-approval that will help simplify the process. We may be able to apply for this without a credit verification and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial health questions. It is not an offer of credit or guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer that you might receive could have different terms.
The application process
Do I have the right to receive funds?
You can apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a few minutes and an experienced company credit specialist will be in touch to guide you through the process.
To apply for up $100,000 you’ll need identification details (valid Driver’s License) and an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Information on the application including credit consent twelve months bank statement, an IRD statements and the last two years’ finalised financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually provide a response in one hour – as long as you make your application within standard business hours and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements we can offer an answer within just one company day.
For Larger Business Loans ($100K or more) we could be in a position to offer you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval in just 24 hours.
The fastest way for you to apply is ensure you apply during standard company hours. You can also allow us to use our modern bank verification to check your bank’s information online. If you decide to upload duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we can often offer an answer within an hour – as long as you submit your request at standard business times and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements we can provide the decision in as little as the span of one business day.
For Larger Business Loans ($100K up to $500,000) we might be in a position to offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Some offers have been approved within the space of 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours, and let us use the advanced bank verification system to instantly confirm your bank details online. If you choose to send us the copies of bank statement, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we consider a variety of factors in order to assess your well-being of the business and the extent of repayments your business will be able to support. The amount you receive from your loan will depend on the specifics for your business.
When you apply for a set amount, we will consider a number of factors to assess how much we can lend you such as well-being that is your business as well as the amount of repayments that your company is able to afford. The total amount of the loan will be determined by the specifics for your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for our company loans, we’ll assess the risk assessment that you have for your business and offer an individualised offer, including the loan amount, the terms and the interest rates. It is a business loan is an upfront cost loan which means you know in advance the total amount to be paid, including any charges or interest.
What determines the amount I pay?
Business loan interest rates differ based on various factors such as the amount that is that is borrowed, what business assets the funds will be used for in addition to the industry that the business operates in, the long the business is in operation, whether the business has sufficient cash flow to fund the loan, and general well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much you need to pay and at what time, from the very first day. There’s no compounding interest and there are no additional charges (as long as you make your payments in time).
We don’t charge an application fee. You are able to get a cash loan without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay out the loan earlier?
You can repay all of your loan in full at any time.
If you choose to take this route, please call our helpful company credit professionals. We will offer you with the details of your repayment and an early payment 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 remaining plus any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss payment dates and to align with your cash flow standard, we provide payments that are either daily or weekly. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being transparent about the ways we gather, use, exchange and protect your information, is vital and is an essential part 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 personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and security. We make use of an advanced bank verification system link to immediately confirm your bank account information online. This allows us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner makes use of an asset they own to secure the funding. The asset can be either an individual asset, such as the family home, or it could be a business asset such as a truck or piece or equipment.
The majority of lending institutions, not just the largest banks, are inclined to guarantee loans against an asset. If you are having difficulty paying back the loan, your assets could be taken over by the lender. In essence, it’s a way of securing new financing using the worth of the asset you already own.
Are I require security to secure a business loan?
For loans up to $150K there is no requirement for asset security prior to the loan’s access however, we require a personal guarantee. need the personal guarantee. In the event that you fulfill your loan commitments (as detailed in your loan contract document) Asset security will never be required. If you take out loans in excess of $150K typically, you will need a personal ensure and security that is in the form a charge over assets.