FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Essendon Small Business Loans
Let me know what you think of the Essendon Small Business Loans
Essendon unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from the traditional company loan?
The application to your Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the money could be available in just 24 hours. Traditional company loans refer to an annual interest rate along with other charges and fees. Our company loan is a loan that is priced upfront therefore you’ll be aware of the total amount payable including any fees, interest or charges. Then, it is broken down into a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business use, including managing cash flows, company renovations, marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
About larger Essendon Business Loans
What is the Larger Essendon Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be in operation for at least 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost all company need, including business remodeling, buying equipment or inventory, as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This can be done in the form of a charge over assets, and could be registered through the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally in nature rather than stipulating the security for a particular asset. The person who is signing the ensure is personally accountable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR gives priority over personal property to be granted according to the date the security interest has been registered.
An affidavit is an official document that is filed to offer an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan that exceeds $250,000, we may offer a preliminary pre-approval to help ease the process. We may be able to get this done without a credit check, 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 health checks. It is neither an offer nor a guarantee of financing. A conditional approval is subject a full credit assessment and any offer you may receive may be based on different terms.
Application process
Are I eligible for funding?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (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 quick and simple. Simply complete the online form in few minutes and an experienced business lending specialist will contact you to guide you.
For a loan of up to $100,000 you’ll require ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Information about the application 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 twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K and up) we typically offer an answer within an hour if you submit your request at quality business time and you allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statement, we’ll offer a decision in just 1 company day.
For the Larger Business Loan ($100K and up) we could be capable of offer you with conditional pre-approval in about six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some deals have been approved in 24 hours.
The fastest way can be ensure you apply during standard company hours and permit us to use the advanced bank verification system to verify your bank information online. If you choose to upload duplicates of your banking statements , it takes a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we typically offer a response in one hour – as long as you make your application within standard business time and you allow us to use the bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your bank statements, we’ll be able to offer the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K and up) We may be likely to offer you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Certain deals have been approved within just 24 hours.
The fastest method would be to make sure you apply during standard business hours and allow us to use the modern bank verification to verify your bank account information online. If you choose to send us copies of your bank statements it may take a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of elements for determining your health that is 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 specifics of your company.
When you make an application for a set amount, we consider a variety of factors to determine your well-being that is your company and the extent of payments your company will be able to support. The total amount of your loan will depend on the specific circumstances the company.
Fees & repayments
How much do you charge for an business loan?
If you decide to apply for one of our company loan, we’ll assess the risk profile for your company and offer you with a customised offer, including the amount of loan, the term and the interest rates. It is a company loan is an upfront cost loan and you’ll know in advance the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I am charged?
Interest rates for business loans rates depend on several factors like the amount of money borrowed, the business assets the funds are used to purchase, the industry the company operates in, how long the company has been running for, in the event that the company has sufficient cash flow to cover the loan, and the overall health or creditworthiness of the business.
What are the cost?
There are no hidden costs with our business loans, and you’ll be aware of the amount you be required to pay and when, from the very first day. There’s no compounding interest and there are no additional charges (as as you make your payments punctually).
We don’t charge an Application Fee. You can make an application for loans no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved 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% of the loan amount.
Can I pay off the loan early?
You can repay the entire amount of your advance loan at any time.
If you are deciding to take this route, please speak to our friendly business credit experts. They’ll provide you with the details of your repayment along with an early payout estimate. It will be calculated using the sum of the principal remaining and any accrued interest at the time of the early payout plus 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align with your cash flow routine, we offer repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing the ways we gather the information we collect, use, share and safeguard your data, is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of clients and security. We make use of an advanced banking verification system to instantly verify your bank account information online so we can provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner utilises an asset they own to secure a loan. The asset can be either an individual property, such as the family home or a company asset such as a vehicle or piece of equipment.
The vast majority of banks, not just the big banks, tend to guarantee loans against an asset. If you are having difficulty paying back the loan, the asset might be offered for sale by the lender. In essence, it is the process of securing new financing using the value of what you already have.
What do I need security to secure a business loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds However, we do require an individual guarantee. As long as you follow your loan commitments (as stated in your loan contract document), asset security is not needed. If you take out loans in excess of $150K generally, there is the option of a personal ensure and security in the form a charge over assets.