FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Elizabeth Small Business Loans
Tell me how you are able to avail the Elizabeth Small Business Loans
Elizabeth unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from the traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes online or by phone. You will receive an immediate response, and funds may be in your account in 24 hours. Traditional company loans refer to an interest rate per annum plus other fees and charges. We offer a company loan is a pre-paid loan which means you know ahead of time the total amount due, which includes any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business purpose including control of cash flow business remodels and marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal purposes.
About larger Elizabeth Business Loans
What is the Larger Elizabeth Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your 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) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly any company purpose including company renovations, purchase of new equipment or inventory for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It’s in the form of a charge against assets and can include the registration of this through the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature, rather than stipulating the security of a specific asset. The person signing the ensure is personally liable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including objects or assets). The PPSR permits prioritisation over property that is personal to be granted depending on the date that a security interest was registered.
Caveats are legal document lodged to offer the public notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan of more than $250,000 it’s possible to offer an initial pre-approval to make the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial well-being checks. It’s not an offer or guarantee of funds. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you are offered could have different terms.
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 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Complete the online form in few minutes and a dedicated company credit specialist will be in touch to guide you through the process.
For a loan of up to $100,000 you’ll require ID details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually offer a response in one hour if you make your application at quality company timings and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements , we will be able to provide an answer within one company day.
For Larger Business Loans ($100K up to $500,000) we may be capable of provide the conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Some offers have been approved in 24 hours.
The most efficient method is to ensure you apply during standard business hours. Also, let us use the advance bank verification link to instantly confirm your bank details online. If you choose to upload copies of your bank statement, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour – provided you submit your request at normal business hours and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements, we are able to offer a decision in as little as one business day.
For Larger Business Loans ($100K or more) we may be able to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Some transactions have received approval in the space of 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours, and allow us to use the modern bank verification link to verify your bank account information online. If you upload the copies of bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide 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 for determining the health of the company as well as the amount of the repayments your business can support. The amount you receive from the loan will be determined by the specifics that are unique to your company.
When you submit an application for a certain amount, we consider a variety of variables to assess how much we can lend you such as health that is your business and the extent of repayments your company can support. The amount you receive from the loan will be determined by the particular circumstances for your company.
Fees & repayments
What is the cost for a company loan?
When you make an application for one of our company loan, we’ll assess the risk profile that you have for your business and provide you with a customised offer including the loan amount, the terms and interest rates. It is a business loan is an upfront cost loan therefore you will be aware in advance of the total amount due, which includes any charges or interest.
What is the basis for the rate I am charged?
Interest rates for company loans rates differ based on various factors such as the amount that is that is borrowed, what company assets the funds are used to purchase as well as the field the business is in, how long the business is in operation as well as in the event that the company has sufficient cash flow to cover the loan, and also the overall well-being or creditworthiness of the company.
What are the fees?
There aren’t any hidden charges for our company loans, and you’ll know precisely how much you be required to pay and when, from the day you sign up. There’s no compounding interest and no extra fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You are able to apply for a loan without any upfront costs or any obligation to sign up.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the total amount of your advance loan at any time.
If you decide to pursue this option, please speak to our friendly business lending experts. They’ll provide you with the details of your repayment along with an early payout estimate. This will be calculated as the total of the remaining principal amount and the accrued interest up to the date of early payout and 1.5% of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss due dates and also to be in line with your cash flow general, we offer repayments either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear the ways we gather information, use it, and exchange it, as well as protect your information, is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We employ an exceptionally sophisticated banking verification system to immediately verify your bank account details online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner uses assets they own to make the funds for a loan. The asset can be either a personal asset like the family home or an business property like a truck or piece or equipment.
The majority of lending institutions, not just the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan then the asset could be taken over by the lender. In essence it’s means of securing additional financing using the value of what you already have.
Are I need security to secure a business loan?
For loans up to $150K it is not necessary to secure assets in advance to gain access to the funds but we require a personal guarantee. require the personal guarantee. As long as you follow your loan commitments (as stated in your loan contract) the security of assets is not needed. For loans of over $150,000 typically, you will need personal ensure and security in the form a charge over assets.