FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Eden Hills Small Business Loans
Let me know what you think of the Eden Hills Small Business Loans
Eden Hills unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an traditional business loan?
You can apply for the Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and the funds could be in your account in 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. The business loan is a loan that is priced upfront therefore you’ll know in advance the total amount payable including any fees, interest or charges. This is then divided into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company use, including control of cash flow business remodels and marketing to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About the Larger Eden Hills Business Loans
What is the Larger Eden Hills Business Loan?
The Larger Business Loan is a larger loan size to support business growth 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 depending on your situation.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been trading for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost all company need, including business improvements, purchasing new equipment or inventory or as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This can be done in the form of a charge against assets, and may include registering this on the PPSR or the registration of as a caveat.
A director’s or personal ensure is a promise to repay credit that is general in nature, rather than stating the security for a particular asset. The person who is signing the ensure is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR allows the priority of personal property assigned in accordance with the date on which a registration of a security interest.
A caveat is a legal document filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan of more than $250K it’s possible to offer a preliminary pre-approval to help simplify the process. We could be able to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health checks. It is not an offer or guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may be subject to different conditions.
The application process
Do I have the right to receive funds?
You may apply 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 business (with a valid NZBN/IRD)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Complete the online form in just a few minutes, and an experienced company expert in lending will contact you to assist you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s License) and an active NZBN/IRD, and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank records, IRD statements, last 2 years finalised financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour – as long as you submit your request in standard company hours and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statements , we will be able to offer the decision within one business day.
For Larger Business Loans ($100K up to $500,000) we may be in a position to provide the conditional pre-approval within about six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some deals have been approved within less than 24 hours.
The quickest way to apply is to ensure you apply during standard company hours and let us use the modern bank verification to verify your bank information online. If you opt to send us documents from your account accounts, it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we usually provide an answer in just one hour – provided you make your application during normal business hours and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll provide the decision within an business day.
For the Larger Business Loans ($100K or more) we could be in a position to offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Some agreements have been approved within just 24 hours.
The quickest method is to make sure you apply during normal business hours and allow us to use our modern bank verification to verify your bank information online. If you upload documents from your account statements, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a particular amount, we look at a variety of elements for determining how much we can lend you well-being of the company as well as the amount of repayments that your business will be able to support. The amount you receive from the loan will be determined by the particular circumstances that are unique to your business.
If you apply for a specific amount we look at a range of elements to assess how much we can lend you such as health of the business as well as the amount of repayments your business is able to afford. The total amount of the loan will be determined by the specifics for your company.
Fees & repayments
How do you charge for a business loan?
If you decide to request one of our company credit, we will assess the risk profile the business and provide you with a customised offer, including the loan amount, the terms and interest rates. The company loan is an upfront-priced loan therefore you will know in advance the total amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I am charged?
Interest rates for company loans rates differ based on various factors like the amount of money of money borrowed, the company assets the money will be used for and the sector the company operates in, the long the business is in operation for, how long the business has sufficient cash flow to fund the loan, and also the overall well-being as well as creditworthiness business.
What are the costs?
There are no hidden fees for our business loans, and you’ll know precisely what you be required to pay, and when, starting from the first day. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We do not charge an application fee. You are able to get a cash loan with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay off the loan in advance?
You can decide to repay the total amount of your loan early at any time.
If you are deciding to do this please call our helpful company loan experts. The specialists will offer you with the details of your repayment as well as an early payout amount. This will be calculated as the sum of the principal balance and any accrued interest at the time of early payout, plus 1.5% of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing payments and to work with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about the ways we gather the information we collect, use, share and ensure the security of your information is crucial and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We make use of an advanced banking verification system to immediately verify the bank account details online, allowing us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a business owner makes use of an asset that they own to secure the loan. The asset could be an individual asset, such as the family home, or a company asset such as a vehicle or other piece of machinery.
The vast majority of lenders, even the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, the asset might be taken over by the lender. In essence, it’s a way of securing new funding using the value of what you already have.
What do I require security to secure a business loan?
Up to $150K in loans it is not necessary to secure assets prior to the loan’s access However, we do require the personal guarantee. If you adhere to your loan commitments (as stipulated in your loan contract document) Asset security will never be required. If you take out loans in excess of $150,000 generally, you can get the option of a personal ensure and security in the form of a charge over assets.