FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Epsom Small Business Loans
Let me know how you are able to avail the Epsom Small Business Loans
Epsom unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
The application for the Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and the money could be in your account in 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. This company loan is a pre-paid loan therefore you’ll know in advance the total amount to be paid, including any interest, fees or charges. This is then broken down into either a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business need, such as cash flow management, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal purposes.
About larger Epsom Business Loans
What is the Larger Epsom Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the business needs to be in operation for at least 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funding be used for?
A large business loan can be used for nearly all business purpose including company improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. This is in the form of a charge over assets, which could also include the registration of this on the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature rather than stating security over an asset. The person who signs the ensure is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR allows priority over personal property to be granted according to the date the security interest was registered.
The caveat can be described as a formal document that is filed to provide the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000 we can offer an initial pre-approval that will help ease the process. We might be able to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial well-being questions. It’s not an offer of credit or guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer you may receive may be subject to different terms.
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)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a few minutes and an experienced company credit specialist will call you to help you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we can often offer an answer within one hour if you submit your request within quality company timings and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statements , we are able to provide an answer in just the span of one business day.
For Larger Business Loans ($100K to $500K) we might be capable of provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some offers have been approved within less than 24 hours.
The fastest way is to ensure you apply during standard business hours and allow us to use the advance bank verification link to verify your bank account information online. If you decide to upload duplicates of your banking statement, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we typically offer an answer within an hour, provided you make your application within normal business hours and let us use the bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statement, we’ll provide the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K or more) We may be likely to offer you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this can be faster depending on the specifics of each application. Certain offers have been approved within just 24 hours.
The most effective method would be to make sure you apply during normal business hours and let us use the advanced bank verification system link to instantly confirm your bank details online. If you opt to send us duplicates of your banking statement, it will take a little longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of variables in order to assess your health for your company and the level of payments your business is able to afford. The amount you receive from your loan will be contingent on the specific circumstances of your company.
When you make an application for a set amount, we will consider a number of factors to determine the health of your business and the extent of the repayments your company is able to afford. The amount you receive from your loan will be contingent on the particular circumstances the company.
Fees & repayments
What is the cost for a company loan?
When you make an application for one of our company financing, we will assess the risk profile of your company and offer you with a tailored offer, including the loan amount, the terms and the interest rates. A company loan is an upfront-priced loan and you’ll know the exact amount due, which includes any interest rates, fees or charges.
What determines the amount I am charged?
The interest rates on company loans rates vary due to factors such as the amount that is borrowed, the company assets the funds are used to purchase in addition to the industry that the company is operating in, how long the company has been in operation and in the event that the business has enough cash flow to fund the loan, and overall health as well as creditworthiness business.
What are the costs?
There aren’t any hidden charges with our business loans. You’ll know precisely how much you be required to pay and when, from the day you sign up. There’s no compounding interest, and no additional fees (as long as you make your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated in establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan earlier?
You can decide to repay the entire amount of the loan in full at any time.
If you do decide to do this please call our helpful business credit experts. They will provide you with the details of your repayment and an early payout figure. The figure will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout plus 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work with your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect data, process, exchange and safeguard your data, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to customer security and privacy. We employ an exceptionally sophisticated bank verification system to instantly verify your bank account information online, allowing us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the company owner utilises assets they own to make the funding. The asset can be an asset belonging to the personal, like the family home, or a business asset such as a vehicle or piece or equipment.
The vast majority of the lenders including the largest banks, are inclined to guarantee loans against an asset. If you’re struggling to pay back the loan then your assets could be transferred to the lender. In essence it’s means of securing new financing by taking advantage of the value of what you already have.
Should I need security for an business loan?
For loans up to $150K no asset security is required before you are able to access the money, however we do need the personal guarantee. If you adhere to your loan commitments (as specified in your loan contract document) Asset security is not needed. For loans over $150,000 generally there is personal ensure and security in the form of an asset charge.