FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Edithvale Small Business Loans
Tell me about the Edithvale Small Business Loans
Edithvale unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from a traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or over the phone, receive an instant response and funds may be in your account in 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. The business loan is a cash-based loan therefore you’ll be aware of the amount you will have to pay, including any fees, charges or charges. Then, it is divided into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company need, such as managing cash flows, business renovations, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
About larger Edithvale Business Loans
What is the Larger Edithvale Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to be trading for at least 3 years and have an annual turnover of $700K. 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 to demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large business loan is a great option for almost every company use, including business remodeling, buying equipment or inventory, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It’s by way of charge on assets, and could include registration with the PPSR or making a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is general in nature rather than stating the security of a specific asset. The person who is signing the ensure is personally accountable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR grants priority over personal property to be granted according to the date the security interest that is registered.
An affidavit is an official form of document to provide the legal claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting larger business loans of more than $250,000 we can offer an initial pre-approval in order to ease the process. We may be able to get this done without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial health questions. This is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you may receive may be based on different conditions.
The application process
Can I be eligible for funding?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $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 expert in lending will be in touch to assist you.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent twelve month bank accounts, the IRD statements, last 2 years finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we can often offer an answer within an hour – as long as you submit your request at standard business timings and let us utilise the bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statements , we’ll be able to provide the decision within just an company day.
If you are applying for a Larger Business Loan ($100K or more) we may be capable of provide you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some agreements have been approved in less than 24 hours.
The most efficient method would be to ensure you apply during normal company hours and let us use the advance 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 quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour – provided you make your application within normal business timings and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can provide an answer within an business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be in a position to offer the conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this can be faster depending on the circumstances of each application. Certain deals have been approved in the space of 24 hours.
The fastest method would be to ensure you apply during standard business hours, and permit us to use the advance bank verification to instantly confirm your bank details online. If you decide to upload the copies of bank statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we look at a variety of elements to determine how much we can lend you health of the company as well as the amount of repayments your business can support. The total amount of the loan will be determined by the specifics of your business.
If you apply for a set amount, we will consider a number of factors to determine the health of the company and the amount of repayments your company will be able to support. The amount you receive from your loan will be contingent on the particular circumstances of your company.
Fees & repayments
How do you charge for a company loan?
When you make an application for the company financing, we will assess the risk profile that you have for your company and offer you with a tailored proposal that includes the amount of loan, the term and interest rates. The company loan is an upfront cost loan and you’ll know in advance the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I am charged?
Business loan interest rates depend on a variety of factors including the amount that is borrowed, what company assets the funds are used to purchase, the industry the business operates in, the long the business has been in operation for, whether the company has sufficient cash flow to cover the loan, and also the general health and creditworthiness of the company.
What are the fees?
There are no hidden fees for our company loans. You’ll know precisely how much you need to pay and at what time, from day one. There’s no compounding and no additional fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can 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. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the total amount of your loan early at any time.
If you choose to do this please talk to one of our helpful company credit professionals. They will offer you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of the early payout plus 1.5 percent of the principal balance and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Security of your data, and knowing how we collect, use, exchange and protect your information, is vital and a vital 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 secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We utilise a sophisticated bank verification system that allows you to instantly verify the bank account details online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner makes use of an asset they own to secure the funding. The asset may be a personal asset like the family home or it could be a business property like a truck or piece or equipment.
The vast majority of the lenders including the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan then the asset might be taken over by the lender. In essence it is a way of securing additional financing using the worth of the asset you already have.
What do I require security for a business loan?
For loans that exceed $150,000, it is not necessary to secure assets in advance to gain access to the funds however, we do require a personal guarantee. If you adhere to your loan commitments (as specified in your loan contract) the security of assets will never be needed. For loans over $150K generally, there is an individual ensure and security in the form of an asset charge.