FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Erindale Small Business Loans
Tell me about the Erindale Small Business Loans
Erindale unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from the traditional business loan?
It is possible to apply for your Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and funds may be in your account in 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. Our business loan is a loan that is priced upfront which means you know in advance the total amount payable including any fees, charges or charges. This is then broken down into weekly or daily payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company need, such as control of cash flow business improvements, advertising for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal use.
About larger Erindale Business Loans
What is the Larger Erindale Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large, your company needs to be operating for at least three years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funding be used for?
A large company loan can be used for nearly every business use, including business remodeling, buying 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 one that is secured?
Asset security is necessary for funding of more than $150,000. This is by taking a charge over assets, and may include registering this through the PPSR or registering as a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature, rather than specifying the security of a specific asset. The person signing the ensure is personally liable if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR permits preference over private property granted in accordance with the date on which a security interest was registered.
The caveat can be described as a formal document 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 requesting a Larger Business Loan of $250,000 or more, we may offer an initial pre-approval to smooth out the process. We could be able to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial health questions. This is neither an offer nor a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you are offered could have different conditions.
The application process
Can I be eligible for funding?
You may apply for an company 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)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Complete the online form in just a few minutes, and an experienced company lending specialist will be in touch to guide you through the process.
To apply for up $100,000, you’ll need ID details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent and 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we can often provide a response in one hour, provided you submit your request in quality business times and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you opt to send us copies of your bank statements we can offer a decision within just 1 company day.
For the Larger Business Loan ($100K up to $500,000) we might be likely to provide you with pre-approval conditional to your application in around six hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved within just 24 hours.
The most effective method is to make sure you apply during normal business hours, and allow us to use our modern bank verification link to instantly check your bank’s information online. If you opt to send us copies of your bank accounts, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour, provided you make your application in standard business hours and allow us to use the bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can offer the decision within an business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to offer the conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some offers have been approved in just 24 hours.
The quickest method is to make sure you apply during normal business hours. You can also allow us to use our advanced bank verification system link to verify your bank information online. If you choose to upload duplicates of your banking statements, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we look at a variety of variables for determining your health of the company and the level of repayments that your business can afford. The total amount of the loan will be determined by the specifics of your business.
If you apply for a certain amount, we look at a range of aspects to assess your well-being of the company and the extent of payments your business will be able to support. The total amount of the loan will be determined by the particulars that are unique to your business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to make an application for one of our company credit, we will assess the risk assessment that you have for your company and provide you with a tailored offer including the amount of the loan, the duration and interest rates. The business loan is an upfront priced loan so you will know in advance the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Interest rates for company loans rates depend on a variety of factors like the amount of money borrowed, the company assets the funds are used to purchase in addition to the industry that the company is operating in, how long the business has been running and what percentage of the company has enough cash flow to pay for the loan, as well as the overall health and creditworthiness of the company.
What are the cost?
There are no hidden costs 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 the loan comes with no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to get a cash loan with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You may choose to pay back the entire amount of the advance loan at any time.
If you are deciding to do this please call our helpful business credit experts. They’ll offer you with details for repayment as well as an early payout amount. It will be calculated using the total of the principal amount remaining and the accrued interest up to the date of early payout and 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payment dates and to align with your cash flow standard, we provide payments that are either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing the ways we gather, use, exchange and secure your information, is of huge importance and is an essential element 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 qualified for our dedication to security for our clients and privacy. We make use of an advanced banking verification system to instantly verify the bank account details online. This allows us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an company owner uses an asset that they own to get the funds for a loan. The asset can be an asset belonging to the personal, like the family home or an company asset like a truck or other piece of machinery.
The vast majority of lenders, even the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan, your asset may be taken over by the lender. In essence, it’s a way of securing new funding making use of the value of what you already have.
Do I need security to secure a company loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money but we do need the personal guarantee. So long as you comply with your loan commitments (as specified in the loan contract) Asset security will never be needed. For loans of over $150,000 generally there is an individual guarantee and security in the form an asset charge.