FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mount Eden Small Business Loans
Tell me more about Mount Eden Small Business Loans
Mount Eden unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from a traditional company loan?
Apply to your Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and the money could be available in just 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. The company loan is a cash-based loan so you will be aware of the total amount to be paid, including any fees, charges or charges. This is then broken down into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every company need, such as the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan is not available to fund personal expenses.
About larger Mount Eden Business Loans
What is the Larger Mount Eden Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How is 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 qualify for a loan of this size the company needs to have been in operation for at least 3 years and generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funding be used for?
A Larger Business Loan can be used to fund almost any company reason, such as business renovations, purchase of new equipment or inventory 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 for funding of more than $150,000. It is usually as a result of an charge on assets and can include the registration of this through the PPSR or the registration of as a caveat.
A director’s or personal ensure is a promise to repay credit that is generally based rather than defining security over an asset. The person who signs the guarantee is personally liable if the company 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 records security interests that have been granted to individuals who own personal property (including goods or assets). The PPSR grants priority over personal property to be assigned according to the date a security interest that is registered.
The caveat can be described as a formal form of document to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250K, we may offer a preliminary pre-approval to help ease the process. We may be able to make this decision without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial well-being checks. It is not an offer or guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could be based on different conditions.
Do I have the right to receive funds?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Complete the online form in few minutes and an experienced company loan specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent and 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within one hour – as long as you apply at standard business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statement, we’ll provide an answer in as little as an business day.
For the Larger Business Loan ($100K or more) we may be able to provide the conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The most effective method can be ensure you apply during standard company hours, and let us use the modern bank verification to verify your bank information online. If you opt to upload copies of your bank statement, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we usually offer an answer within an hour, provided you submit your request during standard business timings and let us use the bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements, we are able to offer the decision in just 1 business day.
For the Larger Business Loans ($100K or more) we might be in a position to offer you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved in the space of 24 hours.
The most efficient method for you to apply is make sure you apply during normal business hours, and allow us to use our sophisticated bank verification to verify your bank account information online. If you opt to send us duplicates of your banking statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a certain amount we will consider a number of elements that determine your health of the company and the amount of repayments that your business can afford. The total amount of your loan will depend on the specific circumstances of your company.
When you apply for a specific amount we take into consideration a variety of variables to assess the health that is your company and the amount of payments your company can afford. The total amount of the loan will be determined by the particulars for your company.
Fees & repayments
What is the cost for the cost of a company loan?
When you apply for our company financing, we will assess the risk assessment for your business and provide you with a customised offer that includes loan amount, term and the interest rates. A business loan is an upfront cost loan and you’ll be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I will be charged?
Business loan interest rates depend on a variety of factors like the amount of money of money borrowed, the company assets the money will be used for and the sector the company operates in, the long the business has been operating, how long the business has sufficient cash flow to cover the loan, and also the general well-being or creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our company loans, and you’ll know exactly how much you be required to pay, and at what time, from the day you sign up. There’s not any compounding interest and there are no additional charges (as as you make your payments punctually).
We do not charge an Application Fee. You are able to get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan early?
You can choose to repay the total amount of your loan in full at any time.
If you decide to take this route, please speak to our friendly company credit experts. The specialists will offer you with details for repayment and an early payout figure. This will be calculated as the total of the principal remaining and the accrued interest up to the date of early payout in addition to 1.5% of the principal remaining and any outstanding fees.
What are the repayment methods?
To ensure you do not miss payment dates and to align with your cash flow standard, we offer repayments either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being upfront about how we collect, use, exchange and safeguard your data, is of paramount importance and is an essential 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 and financial data and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We use an advanced banking verification system to immediately verify your bank account information online so we can provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner uses assets they own to secure the funds for a loan. The asset can be either an individual property, such as the family home, or an company asset such as a truck as well as a piece of machine.
The vast majority of lending institutions, including the major banks, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan then your asset may be taken over by the lender. In essence, it is the process of securing new funding taking advantage of the value of what you already have.
Do I need security to secure a business loan?
For loans that exceed $150,000, it is not necessary to secure assets upfront to access the money however, we require a personal guarantee. need an individual guarantee. If you adhere to your loan obligations (as stipulated in your loan contract) Asset security is not required. For loans of over $150,000 generally, there is the option of a personal ensure and security is provided in the form of an asset charge.