FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Ardeer Small Business Loans
Tell me more about Ardeer Small Business Loans
Ardeer unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
The application to the Small Business Loan in under 10 minutes over the phone, receive an instant response and the funds could be on your account within 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. We offer a business loan is a loan that is priced upfront which means you be aware in advance of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost every business use, including managing cash flows, business renovations, marketing to purchase inventory, new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
Concerning Larger Ardeer Business Loans
What is the Larger Ardeer Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funds be used for?
A larger company loan can be used for nearly all company purpose including business improvements, purchasing new equipment or inventory, as 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 accessing funds over $150,000. This is as a result of an charge on assets, and may include registration through the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature rather than specifying security over an asset. The person who signs the ensure is personally responsible if the business the borrower fails to pay back the debt.
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 items or assets). The PPSR allows the priority of personal property granted according to the date the registration of a security interest.
An affidavit is an official form of document to provide an official notice of a claim to property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan of more than $250K it is possible to offer an initial pre-approval to make the process. We may be able to make this decision without credit checks 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. It’s not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you might receive could be subject to different conditions.
The application process
Do I have the right to receive funds?
You may apply for an business 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)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a couple minutes, and a dedicated company loan specialist will call you to help you.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent twelve months of bank records, IRD statement and the last two years’ finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour – as long as you apply in standard company timings and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you want to submit copies of your bank statements , we’ll be able to offer an answer in as little as an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be able to provide you with pre-approval conditional to your application within about 6 hours. After you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this can be quicker based upon the circumstances for each application. Some transactions have received approval in 24 hours.
The quickest method is to ensure you apply during normal company hours. You can also let us use the modern bank verification link to instantly verify your bank information online. If you choose to upload copies of your bank accounts, it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we usually provide a response in one hour, provided you apply in standard business hours and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements we can provide a decision in just the span of one business day.
For Larger Business Loans ($100K and up) we might be able to offer you with conditional pre-approval within 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some agreements have been approved in less than 24 hours.
The fastest method would be to ensure you apply during normal business hours, and allow us to use our advance bank verification link to confirm your bank details online. If you choose to send us documents from your account statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of aspects to determine the well-being for your company as well as the amount of repayments your business is able to afford. The total amount of your loan will depend on the particular circumstances for your business.
When you submit an application for a specific amount we consider a variety of elements to assess your health of your company as well as the amount of the repayments your company can support. The total amount of your loan will be contingent on the particular circumstances that are unique to your company.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to request the business credit, we’ll assess the risk profile that you have for your business and provide an individualised proposal that includes loan amount, term and interest rates. The business loan is an upfront-priced loan which means you know in advance the total amount due, which includes any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates vary due to variables like the amount to be borrowed, the business assets the money are used to purchase and the sector the company operates in, how long the business has been running for, what percentage of the company has sufficient cash flow to fund the loan, as well as the general well-being and creditworthiness of the company.
What are the cost?
There are no hidden costs for our company loans. You’ll be aware of the amount you be required to pay and when, from the very first day. There’s not any compounding interest and there are no additional charges (as as you make your payments on time).
We don’t charge an application fee. You can apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of the advance loan at any time.
If you are deciding to take this route, please talk to one of our helpful company loans professionals. They will offer you with repayment details and an early payment figure. The figure will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payout, plus 1.5 percent of the remaining principal as well as any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss repayments and to fit in with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about how we collect, use, exchange and protect your information, is crucial and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account details online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an company owner utilises an asset they own to obtain the loan. The asset may be an individual property, such as the family home, or a company asset such as a truck or piece or equipment.
The vast majority of the lenders not just the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan, then your assets could be transferred to the lender. In essence, it is means of securing new funding using the value of what you already have.
Should I need security to secure a company loan?
For loans that exceed $150,000, it is not necessary to secure assets upfront to access the money, however we do require the personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in the loan contract), asset security is not required. For loans that exceed $150,000, generally, you are able to get a personal ensure and security in the form the charge of assets.