FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Elizabeth Hills Small Business Loans
Let me know about the Elizabeth Hills Small Business Loans
Elizabeth Hills unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
You can apply to your Small Business Loan in under 10 minutes online or over the phone. You’ll get a same day response and the funds could be available in just 24 hours. Traditional company loans refer to an annual interest rate along with other charges and fees. The company loan is an upfront priced loan which means you be aware of the amount you will have to pay, including any fees, interest or charges. Then, it is divided into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company purpose including managing cash flows, business remodels and marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal reasons.
About larger Elizabeth Hills Business Loans
What is the Larger Elizabeth Hills Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large 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) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be used for?
A Business Loan of a larger size can be used for nearly every business need, including business renovations, to purchase new equipment or inventory or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. This is by way of charge over assets, which could also include registering this on the PPSR or making as a caveat.
A director’s or personal ensure is a commitment to repay a loan which is generally based rather than stating the security of a specific asset. The person signing the guarantee is personally responsible if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR permits priority over personal property to be assigned depending on the date that a security interest was registered.
An affidavit is an official form of document to provide an official notice of a claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan of $250,000 or more we may be able to provide an initial pre-approval in order to simplify the process. We may be able to apply for this without a credit verification and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial health questions. It is not an offer or guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer you may receive may be subject to different conditions.
Application process
Are I 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 company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Just complete the online application in few minutes and a dedicated company lending specialist will call you to help you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s License) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Application details including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) We can usually offer a response in one hour, provided you make your application at quality business times and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statements we can offer the decision in just 1 business day.
For the Larger Business Loan ($100K up to $500,000) we could be likely to offer the conditional pre-approval within six hours. After you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be quicker based on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method is to ensure you apply during standard business hours. You can also let us use the modern bank verification to instantly verify your bank information online. If you choose to send us the copies of bank accounts, it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) We can usually offer a response in one hour – as long as you submit your request in normal business times and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements, we’ll be able to provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be able to provide you with conditional pre-approval in about six hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some agreements have been approved in 24 hours.
The most efficient method for you to apply is make sure you apply during normal business hours, and allow us to use the advanced bank verification system to instantly verify your bank account information online. If you send us the copies of bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a particular amount, we consider a variety of factors that determine the well-being that is your business and the amount of repayments your company is able to afford. The total amount of your loan will depend on the specifics that are unique to your company.
When you apply for a specific amount we will consider a number of factors to assess the well-being of your business and the level of repayments that your business can afford. The total amount of your loan will depend on the specifics of your company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to make an application for the business loans, we’ll assess the risk assessment for your company and offer you with a tailored offer that includes loan amount, term and the interest rates. This company loan is an upfront cost loan and you’ll be aware of the total amount payable including any interest rates, fees or charges.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on a variety of factors like the amount of money borrowed, what business assets the funds will be used for, the industry the business operates in, the long the business has been operating and whether the company has sufficient cash flow to fund the loan, and the general well-being as well as creditworthiness business.
What are the fees?
There aren’t any hidden charges with our company loans, and you’ll know precisely what it is that you be required to pay, and when, from the very first day. There’s no compounding and there are no additional charges (as long as you make your payments on time).
We do not charge an application fee. You are able to request a credit loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this fee if you decide to take 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 choose to repay the total amount of your loan at any point in time.
If you choose to do this please call our helpful company credit professionals. The specialists will provide you with details on repayment as well as an early payout amount. It will be calculated using the sum of the principal balance and any accrued interest at the time of the early payout plus 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
To make sure you do not miss payments and to work your cash flow schedule, we provide repayments either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We make use of an advanced banking verification system to immediately verify your bank account details online so we can offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an company owner utilises assets they own to make the loan. The asset may be an individual property, such as the family home, or a company asset such as a vehicle or other piece of machinery.
The majority of the lenders including the major banks, prefer to secure loans against an asset. If you are having difficulty paying back the loan then your asset may be transferred to the lender. In essence, it is an opportunity to secure new financing by taking advantage of the value of what you already have.
What do I require security to secure an business loan?
For loans of up to $150,000, no asset security is required prior to the loan’s access However, we do require the personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150,000, generally there is an individual ensure and security that is in the form the charge of assets.