FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Eastbourne Small Business Loans
Let me know about the Eastbourne Small Business Loans
Eastbourne 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 daily or weekly.
How is this Unsecured Loan different from an ordinary company loan?
Apply to get your Small Business Loan in under 10 minutes by phone. You will receive a same day response and funds may be in your account within 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. The business loan is an upfront priced loan and you’ll 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?
The Small Business Loan can be used for virtually every company need, such as control of cash flow company improvements, advertising, to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal use.
About larger Eastbourne Business Loans
What is the Larger Eastbourne Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to be in operation for at least 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Larger Business Loan can be used for almost any business purpose including business renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It’s as a result of an charge on assets, and could include the registration of this on the PPSR or making as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature, rather than defining the security of a specific asset. The person who is signing the guarantee is personally accountable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR grants the priority of personal property granted in accordance with the date on which a registration of a security interest.
An affidavit is an official document filed to offer the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K we can offer an initial pre-approval that will help simplify the process. We could be able to make this decision without a credit check, and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial health checks. It’s in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer that you might receive could be on different terms.
The application process
Can I be eligible for funding?
You can apply for an company 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)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a few minutes and a dedicated business credit specialist will contact you to help you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K and up) We can usually offer an answer within an hour if you make your application within quality company time and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statement, we’ll provide an answer within 1 company day.
For Larger Business Loans ($100K up to $500,000) we may be capable of provide the conditional pre-approval within about 6 hours. After 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 specifics of each application. Some agreements have been approved in the space of 24 hours.
The quickest way to apply is to ensure you apply during standard business hours, and allow us to use the advance bank verification to check your bank’s information online. If you opt to send us duplicates of your banking statement, it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) we can often provide an answer within one hour, provided you submit your request at standard business time and allow us to use the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statement, we’ll provide the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be likely to provide you with a conditional pre-approval in about six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Certain transactions have received approval in the space of 24 hours.
The fastest way is to make sure you apply during standard business hours. Also, permit us to use the modern bank verification link to instantly check your bank’s information online. If you send us copies of your bank statements it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a certain amount we look at a variety of variables in order to assess how much we can lend you health of your company as well as the amount of repayments your company is able to afford. The amount you receive from your loan will depend on the specifics that are unique to your company.
When you submit an application for a specific amount we look at a range of factors to determine how much we can lend you such as well-being of the business and the level of repayments that your business can support. The total amount of the loan will be determined by the particulars for your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for our company credit, we will assess the risk assessment for your business and offer you with a tailored proposal that includes the amount of loan, the term and interest rates. A business loan is an upfront priced loan and you’ll know the exact amount you will have to pay, including charges or interest.
What determines the rate that I’m charged?
Business loan interest rates differ based on various factors like the amount of money borrowed, what company assets the funds are used to purchase and the sector the company operates in, the long the business has been running and how long the business has enough cash flow to fund the loan, and also the overall health and creditworthiness of the business.
What are the fees?
There are no hidden fees for our business loans, and you’ll know precisely what it is that you need to pay and when, starting from the very first day. There’s not any compounding interest and there are no additional charges (as long as you make your payments in time).
We don’t charge an Application Fee. You can apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan earlier?
You can choose to repay all of your advance loan at any time.
If you are deciding to take this route, please speak to our friendly business credit professionals. They’ll offer you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal amount remaining and accrued interest to the time of early payment in addition to 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payments and to work with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as safeguard your data, is crucial and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We employ a highly sophisticated banking verification system to instantly confirm your bank account information online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an company owner makes use of assets they own to secure the loan. The asset can be either a personal asset like the family home, or a company property like a truck as well as a piece of machine.
The vast majority of lending institutions, even the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan, then your asset may be offered for sale by the lender. In essence, it is a way of securing new financing by taking advantage of the value of what you already own.
Are I need security for a business loan?
For loans that exceed $150,000, there is no requirement for asset security prior to the loan’s access, however we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as stipulated in your loan contract document), asset security is not required. For loans over $150,000 generally there is the option of a personal guarantee and security in the form charges on assets.