FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Elanora Small Business Loans
Let me know what you think of the Elanora Small Business Loans
Elanora unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from a traditional company loan?
You can apply for this Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and funds may be in your account within 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. This business loan is a pre-paid loan and you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company reason, such as control of cash flow business remodeling, marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal purposes.
About the Larger Elanora Business Loans
What is the Larger Elanora 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 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been operating for at least three years, and have an annual income of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be utilised?
A large business loan can be used for nearly every company reason, such as business improvements, purchasing inventory or new equipment or as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This is by way of charge on assets, and may include the registration of this in the PPSR or filing as a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally in nature rather than stipulating security over an asset. The person who is signing the guarantee is personally liable in the event that the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR allows preference over private property granted according to the date a security interest has been registered.
An affidavit is an official document filed to offer the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan that is greater than $250K, we may offer an initial pre-approval to ease the process. We may be able to get this done without credit checks and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial well-being questions. It’s not an offer or guarantee of funds. A conditional approval is subject a full credit assessment and any offer you are offered could have different terms.
Application process
Are I eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a few minutes and a dedicated company expert in lending will call you to help you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent twelve months bank statement, an IRD statement Last 2 years’ finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we usually provide a response in one hour, provided you submit your request at quality business hours and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statement, we’ll provide the decision in just one business day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval in 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal business hours. Also, allow us to use our advance bank verification to confirm your bank details online. If you opt to send us the copies of bank statements it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we usually provide a response in one hour – provided you submit your request in normal business hours and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements, we will be able to offer a decision in as little as the span of one business day.
For Larger Business Loans ($100K up to $500,000) we could be capable of provide the conditional pre-approval in about six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some deals have been approved in less than 24 hours.
The fastest way can be make sure you apply during normal business hours, and allow us to use the modern bank verification to instantly check your bank’s information online. If you upload documents from your account statement, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we will consider a number of factors to determine what is the health for your business as well as the amount of payments your business is able to afford. The total amount of your loan will be contingent on the specifics for your business.
When you make an application for a certain amount, we will consider a number of aspects to assess your health of your business and the level of repayments that your business can afford. The total amount of your loan will depend on the particular circumstances the company.
Fees & repayments
What is the cost for an company loan?
If you decide to request one of our company credit, we will assess the risk assessment the company and offer you with a tailored offer including the amount of the loan, the duration and the interest rates. The company loan is an upfront priced loan which means you be aware of the total amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates depend on several variables like the amount to be that is borrowed, what company assets the money are used to purchase in addition to the industry that the business is operating in, how long the business has been operating, what percentage of the company has sufficient cash flow to fund the loan, as well as the general well-being or financial standing of the company.
What are the charges?
There are no hidden costs for our business loans, and you’ll know exactly how much you be required to pay and when, right from the very first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You are able to make an application for loans with without any upfront costs or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing 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 percent of the amount of the loan.
Can I pay out the loan earlier?
You may choose to pay back the total amount of your loan in full at any time.
If you choose to take this route, please contact our helpful business loans professionals. They will offer you with the details of your repayment as well as an early payout amount. This will be calculated as the total of the remaining principal amount plus any accrued interest as of the date of early payout plus 1.5 percent of the principal balance as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow standard, we provide repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing how we collect data, process, exchange and secure your information, is crucial and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We utilise a sophisticated banking verification system to instantly verify the bank account details online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an business owner uses an asset that they own to secure the funding. The asset can be either a personal asset like the family home, or a company property like a truck or piece or equipment.
The majority of banks, not just the major banks, prefer to secure loans against an asset. If you’re struggling to pay back the loan, the asset could be offered for sale by the lender. In essence it is the process of securing new funding taking advantage of the value of what you already own.
Are I need security to get an company loan?
For loans up to $150K it is not necessary to secure assets upfront to access the money however, we do require a personal guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract document), asset security will never be needed. If you take out loans in excess of $150,000 generally, there is the option of a personal guarantee and security that is in the form the charge of assets.