FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Edithvale Small Business Loans
Tell me what you think of the Edithvale Small Business Loans
Edithvale unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from the traditional business loan?
Apply for the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and the funds could be on your account within 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. The business loan is an upfront priced loan which means you be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business use, including control of cash flow business renovations, marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
About the Larger Edithvale Business Loans
What is the Larger Edithvale Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to be in operation for at least 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funds for?
A Business Loan of a larger size can be used for almost all company purpose including company renovations, to purchase new equipment or inventory for 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 needed to obtain funding above $150,000. It’s as a result of an charge against assets and can be registered on the PPSR or making as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature rather than stipulating the security for a particular asset. The person who signs the guarantee is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR grants the priority of personal property assigned according to the date the security interest was registered.
A caveat is a legal document filed to offer the legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250,000, we may offer an initial pre-approval in order to simplify the process. It is possible to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial well-being checks. It is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer you may receive may have 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 the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (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 a dedicated business lending specialist will call you to guide you.
To apply for up $100,000 you’ll require identification details (valid Driver’s License) as well as an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we usually offer a response in one hour if you make your application within standard business hours and let us make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statements we can provide a decision within just the span of one company day.
If you are applying for a Larger Business Loan ($100K and up) we may be in a position to offer you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Some offers have been approved in 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal company hours. Also, allow us to use the modern bank verification link to instantly verify your bank information online. If you choose to send us documents from your account statement, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour if you make your application in normal business time and let us use the bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements, we are able to provide an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of provide the conditional pre-approval within 6 hours. Once you’ve signed your 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. Certain offers have been approved within less than 24 hours.
The fastest way is to ensure you apply during normal business hours. Also, let us use the advanced bank verification system link to instantly verify your bank information online. If you send us documents from your account accounts, it may take a bit 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 elements in order to assess your health of the business and the level of the repayments your company is able to afford. The amount you receive from your loan will be contingent on the particular circumstances the company.
When you make an application for a certain amount, we look at a range of elements to assess how much we can lend you such as well-being that is your company and the extent of repayments your business will be able to support. The total amount of your loan will be determined by the particulars of your company.
Fees & repayments
How much do you charge for an company loan?
When you make an application for business loans with us company credit, we’ll assess the risk assessment for your company and offer an individualised offer, including the amount of loan, the term and the interest rates. The business loan is an upfront cost loan and you’ll be aware in advance of the total amount to be paid, including any charges or interest.
What determines the amount I will be charged?
Business loan interest rates depend on several factors including the amount that is borrowed, what company assets the money will be used for as well as the field the company operates in, the long the company is in operation for, in the event that the business has enough cash flow to fund the loan, and the overall well-being and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our business loans. You’ll be aware of the amount it is that you be required to pay, and at what time, from day one. There’s no compounding interest 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 with without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan in advance?
You can repay the entire amount of your loan at any point in time.
If you choose to take this route, please speak to our friendly business loans experts. The professionals will offer you with details for repayment and an early payment figure. It will be calculated using the total of the principal amount remaining and any accrued interest at the time of early payment plus 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
To help you avoid missing repayments and to fit in with your cash flow standard, we offer repayments that are either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being upfront about how we collect information, use it, and exchange it, as well as safeguard your data, is of huge importance and an integral 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 protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We utilise a sophisticated bank verification system to instantly confirm your bank account information online. This allows us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the business owner makes use of the assets they have to make a loan. The asset can be an individual asset, such as the family home or it could be a company asset such as a vehicle or piece of equipment.
The vast majority of the lenders not just the big banks, tend to secure loans against an asset. If you have trouble paying back the loan, then your assets could be offered for sale by the lender. In essence it is an opportunity to secure new funding making use of the value of what you already have.
What do I need security for an business loan?
For loans up to $150K no asset security is required in advance to gain access to the funds, however we do require a personal guarantee. If you adhere to your loan obligations (as specified in the loan contract), asset security is not needed. For loans over $150,000 generally there is the option of a personal guarantee and security that is in the form charges on assets.