FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Embleton Small Business Loans
Tell me how you can avail the Embleton Small Business Loans
Embleton unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
The application for this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and funds may be in your account within 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. Our business loan is a loan that is priced upfront which means you know ahead of time the total amount due, which includes any interest, fees or charges. This is then divided into a daily or weekly installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company reason, such as the management of cash flow, business remodels and marketing to purchase inventory, new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About larger Embleton Business Loans
What is the Larger Embleton Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been operating for a minimum of 3 years and generate an annual revenue of at least $700K. You must be 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 demonstrate at least 12 months of trading.
How can the funding be utilised?
A larger company loan can be used for almost any business reason, such as company renovations, purchase of new equipment or inventory or as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This can be done by taking a charge on assets and can include registering this through the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is generally in nature rather than specifying security over a particular asset. The person signing the ensure is personally accountable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
A caveat is a legal document that is filed to offer notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger company loans that is greater than $250K we can offer an initial pre-approval that will help simplify the process. We may be able to do this without credit checks and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering some financial well-being checks. It’s not an offer or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you receive could be on different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for an business 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 of trading (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in just a few minutes, and an experienced company credit specialist will call you to help you.
To apply for up $100,000 you’ll require identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Information on the application including credit consent and 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often provide an answer within an hour, provided you submit your request during quality business times and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statement, we’ll provide a decision in as little as the span of one company day.
For the Larger Business Loan ($100K to $500K) we could be capable of offer you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The quickest method can be make sure you apply during standard business hours and allow us to use our advance bank verification to verify your bank information online. If you decide to upload duplicates of your banking statements , it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour – provided you submit your request during standard business timings and allow us to use the bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements we can offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of offer the conditional pre-approval in around six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method would be to ensure you apply during normal business hours. Also, allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you choose to send us the copies of bank statements it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of factors in order to assess your well-being for your business and the extent of payments your business will be able to support. The amount you receive from your loan will be contingent on the particular circumstances the business.
If you apply for a certain amount, we will consider a number of factors to determine your health that is your company and the level of repayments your business can afford. The total amount of your loan will be determined by the particulars of your business.
Fees & repayments
What is the cost for the cost of a company loan?
When you apply for the business credit, we’ll assess the risk profile for your business and provide an individualised proposal that includes loan amount, term and the interest rates. The business loan is a loan that is priced upfront therefore you will know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the amount I pay?
The interest rates on company loans rates depend on a variety of variables like the amount to be borrowed, the company assets the money are used to purchase as well as the field the company is operating in, how long the company has been operating and what percentage of the company has sufficient cash flow to support the loan, and the overall well-being or creditworthiness of the company.
What are the fees?
There are no hidden fees for our business loans. You’ll be aware of the amount it is that you be required to pay and at what time, from the day you sign up. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments in time).
We do not charge an application fee. You are able to request a credit loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can repay the total amount of your advance loan at any time.
If you do decide to do this please speak to our friendly company lending professionals. We will offer you with the details of your repayment and an early payment figure. This will be calculated as the total of the principal remaining plus any accrued interest as of the date of early payout in addition to 1.5% of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. They are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about the ways we gather data, process, 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 make use of industry-standard encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online, allowing us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of an asset that they own to make a loan. The asset can be an asset belonging to the personal, like the family home or it could be a company property like a truck or piece of equipment.
The majority of banks, including the banks with the biggest size, prefer to secure loans against assets. If you have trouble paying back the loan then your assets could be taken over by the lender. In essence it’s an opportunity to secure new financing using the value of what you already own.
What do I require security to get an company loan?
Up to $150K in loans it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. require the personal guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract), asset security will never be needed. For loans of over $150,000 typically, you will need personal ensure and security that is in the form the charge of assets.