FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Ebdentown Small Business Loans
Tell me what you think of the Ebdentown Small Business Loans
Ebdentown unsecured loans offers amounts of 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 is how is the Unsecured Loan different from an ordinary business loan?
It is possible to apply to get the Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and have the funds available in just 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. This company loan is a loan that is priced upfront and you’ll be aware of the amount you will have to pay, including any fees, charges or charges. This is then divided into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost every company need, such as cash flow management, business remodeling, marketing to purchase inventory, new equipment, to fund general working capital and much more. The loan cannot be used for personal reasons.
About Larger Ebdentown Business Loans
What is the Larger Ebdentown Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to be operating for at least three years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size is a great option for almost every company purpose including business remodeling, buying equipment or inventory as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It’s as a result of an charge against assets, and may include registration in the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is general in nature rather than specifying the security of a specific asset. The person signing the ensure is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests registered in respect of personal property (including goods or assets). The PPSR gives priority over personal property to be assigned in accordance with the date on which a security interest was registered.
An affidavit is an official document that is filed to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan of $250K or more we can offer a preliminary pre-approval to help smooth out the process. We could be able to do this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial well-being checks. This is not an offer or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you receive could have different terms.
Application process
Do I have the right to receive funds?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Complete the online form in just a few minutes, and a dedicated business expert in lending will contact you to guide you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent and 12 months of bank statements, IRD statement, last 2 years finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K and up) we usually provide an answer within one hour – as long as you make your application during quality business time and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements , we are able to provide a decision within one business day.
For the Larger Business Loan ($100K to $500K) we may be in a position to provide you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The quickest way to apply can be ensure you apply during standard business hours. You can also allow us to use the advance bank verification to instantly verify your bank information online. If you decide to upload documents from your account statements it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we can often provide a response in one hour if you make your application during standard business times and let us use the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements, we are able to provide the decision within 1 business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to provide you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to verify your bank information online. If you opt to upload documents from your account statements it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a particular amount, we take into consideration a range of variables to determine your health of the company as well as the amount of repayments your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your business.
If you apply for a set amount, we take into consideration a variety of aspects to determine how much we can lend you such as well-being that is your business and the amount of payments your business is able to afford. The amount you receive from your loan will depend on the specifics for your business.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to apply for our business financing, we will assess the risk profile that you have for your company and offer an individualised offer that includes the loan amount, the terms and interest rates. This company loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the rate that I will be charged?
Business loan interest rates vary due to factors like the amount of money borrowed, the company assets the money are used to purchase in addition to the industry that the business operates in, how long the business is in operation and in the event that the business has enough cash flow to cover the loan, and also the overall health or creditworthiness of the company.
What are the costs?
There are no hidden costs with our business loans. You’ll know precisely what you’ll be required to pay, and at what time, from the very first day. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments on time).
We do not charge an Application Fee. You can apply for a loan with no cost upfront or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of your loan at any point in time.
If you do decide to pursue this option, please speak to our friendly company loans specialists. They’ll offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal remaining and any accrued interest at the time of early payment plus 1.5% of the remaining principal plus any outstanding fees.
How do repayments work?
To make sure that you don’t miss repayments and to fit in with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing how we collect the information we collect, use, share and secure your information, is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We utilise a sophisticated bank verification system that allows you to immediately confirm your bank account information online, allowing us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from an asset they own to get a loan. The asset can be a personal asset like the family home, or an company asset like a truck as well as a piece of machine.
The majority of lenders, not just the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan then the asset could be transferred to the lender. In essence it is an opportunity to secure new funding taking advantage of the value of what you already own.
Do I require security for a company loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds however, we do need an individual guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract), asset security will never be required. For loans that exceed $150,000, generally, you are able to get a personal ensure and security in the form of an asset charge.