FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Elizabeth Park Small Business Loans
Tell me how you can avail the Elizabeth Park Small Business Loans
Elizabeth Park unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from an traditional business loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes over the phone, receive an immediate response, and have the funds available in just 24 hours. Traditional business loans are based on an interest rate per annum together with additional fees and charges. The company loan is a loan that is priced upfront so you will know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is divided into weekly or daily installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business need, such as control of cash flow business improvements, advertising to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
About Larger Elizabeth Park Business Loans
What is the Larger Elizabeth Park Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to be operating for at least three years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be used for?
A Business Loan of a larger size can be used for almost all business need, including business improvements, purchasing equipment or inventory as well as for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. This is by way of charge against assets and can be registered on the PPSR or filing as a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is generally based rather than defining the security of a specific asset. The person who is signing the ensure is personally responsible if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR allows preference over private property assigned depending on the date that a security interest has been registered.
An affidavit is an official document that is filed to offer the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of $250K or more, we may offer an initial pre-approval that will help smooth out the process. It is possible to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial well-being checks. It’s in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you receive could be on different conditions.
Application process
Do I have the right to receive funds?
You are eligible to 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 business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in few minutes and an experienced business loan specialist will call you to assist you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim current financial year financials, Aged Payables and Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer in just one hour if you submit your request within quality business timings and allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements we can provide the decision in just the span of one business day.
For the Larger Business Loan ($100K to $500K) we could be capable of provide you with pre-approval conditional to your application within 6 hours. After you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some deals have been approved in the space of 24 hours.
The fastest way can be ensure you apply during normal company hours, and let us use the advanced bank verification system link to instantly verify your bank account information online. If you send us copies of your bank accounts, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we can often offer an answer in just one hour if you make your application in standard business hours and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statements we can provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be able to provide you with pre-approval conditional to your application within about 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain transactions have received approval in 24 hours.
The fastest way would be to ensure you apply during standard business hours, and allow us to use the advanced bank verification system to confirm your bank details online. If you opt to send us the copies of bank accounts, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a particular amount, we take into consideration a range of variables in order to assess the well-being of your company and the amount of repayments that your company is able to afford. The total amount of your loan will be contingent on the specific circumstances the company.
When you apply for a set amount, we take into consideration a variety of variables to determine how much we can lend you such as well-being of the business and the amount of the repayments your company can afford. The total amount of your loan will depend on the specific circumstances for your business.
Fees & repayments
How much should you charge for an company loan?
When you make an application for one of our business credit, we will assess the risk profile that you have for your business and offer an individualised offer including loan amount, term and the interest rates. This company loan is a loan that is priced upfront and you’ll know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I’m charged?
Interest rates for business loans rates differ based on various factors such as the amount that is of money borrowed, the business assets the money are used to purchase, the industry the company is operating in, how long the company has been running, what percentage of the company has sufficient cash flow to pay for the loan, and overall health or creditworthiness of the business.
What are the costs?
There are no hidden costs for our company loans. You’ll know precisely how much you’ll be required to pay, and at what time, from the day you sign up. There’s no compounding and there are no additional charges (as long as you make your payments on time).
We don’t charge an application fee. You are able to apply for a loan no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan earlier?
You can repay the entire amount of your loan early at any time.
If you do decide to pursue this option, please call our helpful company lending specialists. The specialists will offer you with details for repayment and an early payment figure. This will be calculated as the total of the remaining principal amount and the accrued interest up to the time of early payout plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about the ways we gather information, use it, and exchange it, as well as safeguard your data, 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 employ industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to security for our clients and security. We use an advanced bank verification system link to instantly verify the bank account details online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner utilises an asset they own to obtain a loan. The asset may be an individual property, such as the family home or it could be a company asset such as a truck or other piece of machinery.
The vast majority of lenders, even the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan then the asset might be sold by the lender. In essence, it’s means of securing new funding using the value of what you already own.
Do I need security to secure an business loan?
For loans that exceed $150K, the requirement for asset security is not required prior to the loan’s access however, we do need an individual guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract) Asset security is not required. For loans over $150,000 generally there is the option of a personal guarantee and security in the form an asset charge.