FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Eden Terrace Small Business Loans
Let me know how you can avail the Eden Terrace Small Business Loans
Eden Terrace unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and the money could be in your account in 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. This company loan is a pre-paid loan and you’ll know ahead of time the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company purpose including managing cash flows, company remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Eden Terrace Business Loans
What is the Larger Eden Terrace Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been in operation for at least 3 years with an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funds be utilised?
A Larger Business Loan can be used for nearly all business purpose including company renovations, to purchase inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. It is usually as a result of an charge against assets and can include registration with the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally based rather than stating the security of a specific asset. The person who signs the ensure is personally responsible if the business creditor is unable 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 gives prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal document lodged to provide notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250,000, we may offer an initial pre-approval to ease the process. It is possible to get this done without a credit check and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial health questions. This is not an offer of credit or guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer you receive could have different terms.
Do I qualify for funds?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in few minutes and a dedicated company loan specialist will contact you to help you.
To apply for up $100,000 you’ll need ID details (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent and 12 months of bank statements, IRD statement, last 2 years finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you submit your request at standard company times and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statements we can offer a decision in just an business day.
If you are applying for a Larger Business Loan ($100K or more) we might be capable of offer you with conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some offers have been approved within just 24 hours.
The fastest way can be ensure you apply during standard business hours. You can also allow us to use our advanced bank verification system to instantly check your bank’s information online. If you choose to upload documents from your account statement, it may 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 a response in one hour, provided you apply at normal business time 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’ll be able to provide a decision in as little as an business day.
For Larger Business Loans ($100K up to $500,000) we could be in a position to provide you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Some offers have been approved within less than 24 hours.
The fastest method would be to make sure you apply during normal business hours. Also, let us use the modern bank verification to instantly verify your bank information online. If you upload copies of your bank statement, it will take a little longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount we look at a variety of variables for determining how much we can lend you well-being of the company as well as the amount of repayments that your company can support. The total amount of your loan will depend on the specifics that are unique to your business.
When you apply for a set amount, we take into consideration a variety of elements to determine the health that is your business as well as the amount of the repayments your business can support. The amount you receive from your loan will depend on the particulars of your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for one of our company credit, we will assess the risk profile of your business and offer an individualised proposal that includes loan amount, term and the interest rates. It is a company loan is a loan that is priced upfront so you will be aware of the total amount to be paid, including any charges, interest rates or fees.
What determines the rate that I pay?
The interest rates on business loans rates vary due to factors like the amount of money borrowed, the company assets the money are used to purchase, the industry the business is operating in, how long the company has been in operation, in the event that the business has enough cash flow to cover the loan, as well as the overall well-being or creditworthiness of the business.
What are the costs?
There aren’t any hidden charges with our company loans. You’ll know exactly how much you need to pay and at what time, from day one. There’s no compounding interest and no extra fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You are able to apply for a loan without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan earlier?
You may choose to pay back all of your loan in full at any time.
If you decide to do this please speak to our friendly business credit specialists. The professionals will offer you with details for repayment and an early payout figure. The figure will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payout plus 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To ensure you do not miss payment dates and to align your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about the ways we gather data, process, exchange and safeguard your data, is vital and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We use an advanced banking verification system to instantly verify the bank account details online to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner borrows from assets they own to make the loan. The asset can be an asset belonging to the personal, like the family home or a business asset such as a truck as well as a piece of machine.
The vast majority of lending institutions, not just the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan then the asset might be taken over by the lender. In essence it’s the process of securing additional financing making use of the value of what you already own.
Should I require security to secure a business loan?
Up to $150,000 in loans there is no requirement for asset security prior to the loan’s access however, we require a personal guarantee. need the personal guarantee. So long as you comply with the loan terms (as stated in the loan contract) Asset security will never be needed. If you take out loans in excess of $150,000 generally, there is a personal guarantee and security in the form of charges on assets.