FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Mount Eliza Small Business Loans
Let me know what you think of the Mount Eliza Small Business Loans
Mount Eliza unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
Apply to your Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and the funds could be available in just 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. Our company loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount to be paid, including any fees, charges or charges. This is then broken down into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business reason, such as the management of cash flow, business remodeling, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
About larger Mount Eliza Business Loans
What is the Larger Mount Eliza Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been trading for at least 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can the funds be used for?
A Larger Business Loan can be used to fund almost any business use, including business remodeling, buying 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 required for funding of more than $150,000. It’s as a result of an charge on assets, and could include the registration of this with the PPSR or registering a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature, rather than defining the security of a specific asset. The person who is signing the ensure is personally responsible if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR gives the priority of personal property granted according to the date the security interest was registered.
Caveats are legal form of document to provide an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan of $250K or more we can offer an initial pre-approval in order to make the process. It is possible to do this without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial well-being checks. It’s neither an offer nor a guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be subject to different conditions.
The application process
Are I eligible for funding?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for you to qualify for 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. Just complete the online application within a couple minutes, and a dedicated company lending specialist will be in touch to guide you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) We can usually offer a response in one hour – as long as you apply in quality business times and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statements , we are able to offer the decision within just 1 company day.
For Larger Business Loans ($100K and up) we may be likely to offer you with pre-approval conditional to your application in about six hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some transactions have received approval in just 24 hours.
The quickest method is to ensure you apply during normal business hours and allow us to use our advanced bank verification system to instantly confirm your bank details online. If you choose to upload copies of your bank statement, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour, provided you make your application during standard business timings and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements we can provide the decision in as little as an business day.
For the Larger Business Loans ($100K or more) we may be able to offer you with conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Certain deals have been approved in just 24 hours.
The most efficient method can be make sure you apply during normal business hours. You can also allow us to use our advance bank verification link to confirm your bank details online. If you send us duplicates of your banking statements it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount we will consider a number of aspects to determine how much we can lend you well-being of the business and the amount of repayments your business can afford. The total amount of the loan will be determined by the specific circumstances that are unique to your company.
If you apply for a particular amount, we consider a variety of elements to determine your health that is your company as well as the amount of the repayments your company can afford. The amount you receive from your loan will be contingent on the particulars for your company.
Fees & repayments
How much do you charge for the cost of a company loan?
When you apply for the business financing, we will assess the risk profile the business and offer an individualised offer including the loan amount, the terms and the interest rates. A business loan is an upfront cost loan which means you know in advance the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I’m charged?
Interest rates for business loans rates differ based on various factors like the amount of money of money borrowed, the business assets the funds are used to purchase as well as the field the business operates in, how long the company has been running as well as in the event that the company has enough cash flow to pay for the loan, and also the overall well-being or financial standing of the company.
What are the costs?
There are no hidden costs for our company loans, and you’ll know precisely how much it is that you be required to pay and at what time, from the first day. There’s no compounding and no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You can make an application for loans with without any upfront costs or obligation to proceed.
The Origination Fee covers the costs associated in establishing and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Do I have the option of paying off the loan early?
You can choose to repay the total amount of your loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful business lending experts. They will provide you with details on repayment as well as an early payout amount. This is calculated as the total of the principal amount remaining plus any accrued interest as of the time of the early payout and 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and being clear about how we collect data, process, exchange and protect 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 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 security for our customers and security. We utilise a sophisticated bank verification system to instantly verify your bank account details online. This allows us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner utilises an asset that they own to secure the loan. The asset may be an asset belonging to the personal, like the family home or a company property like a truck as well as a piece of machine.
The vast majority of lending institutions, not just the big banks, tend to make loans secured by assets. If you’re having trouble paying back the loan then your assets could be taken over by the lender. In essence, it’s the process of securing new funding using the value of what you already have.
What do I require security to secure an company loan?
For loans of up to $150K, it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. require a personal guarantee. As long as you follow your loan commitments (as stated in the loan contract), asset security will never be needed. If you take out loans in excess of $150K generally there is an individual guarantee and security that is in the form charges on assets.