FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Epsom Small Business Loans
Let me know about 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 what makes the Unsecured Loan different from the traditional business loan?
It is possible to apply to the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans refer to an annual rate of interest together with additional fees and charges. The company loan is an upfront priced loan therefore you’ll know in advance the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any business need, such as managing cash flows, business improvements, advertising to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
About larger Epsom Business Loans
What is the Larger Epsom Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
This 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 qualify for a loan of this size, your business needs to be in operation for at least 3 years, and have an annual income of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be used for?
A larger company loan can be used to fund almost all company reason, such as company renovations, purchase of equipment or inventory or as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. It’s in the form of a charge over assets, which could also include registration on the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to repay credit that is general in nature, rather than stipulating the security for a particular asset. The person signing the ensure is personally accountable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR allows the priority of personal property granted in accordance with the date on which a security interest was registered.
Caveats are legal form of document to offer notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000 we can 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 that includes you answering some financial well-being questions. It’s not an offer or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer that you are offered could be subject to different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a few minutes and an experienced company loan specialist will call you to help you.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Information on the application including credit consent twelve month bank accounts, the IRD statements Last 2 years’ finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within one hour – as long as you make your application in standard business timings and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statements , we’ll be able to provide the decision within just 1 company day.
For the Larger Business Loan ($100K to $500K) we could be able to provide you with a conditional pre-approval within six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be quicker based on the specifics of each application. Some agreements have been approved within less than 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard business hours. You can also allow us to use our modern bank verification to instantly verify your bank information online. If you choose to send us the copies of bank statements , it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we can often provide an answer within one hour if you make your application during normal business timings and allow us to use the bank verification system link to instantly verify your bank information online. If you decide to upload copies of your banking statement, we’ll provide a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be capable of offer you with conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Some transactions have received approval within the space of 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours and permit us to use the sophisticated bank verification link to instantly verify your bank information online. If you opt to send us the copies of bank statements it will take a little longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a specific amount we will consider a number of aspects in order to assess how much we can lend you health that is your business and the amount of repayments your business is able to afford. The amount you receive from your loan will be contingent on the specific circumstances of your business.
When you make an application for a specific amount we look at a range of factors to assess the health that is your business and the amount of repayments that your company can support. The total amount of your loan will be contingent on the particular circumstances the business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you request our business financing, we will assess the risk profile the company and offer you with a customised offer including the amount of loan, the term and the interest rates. This company loan is an upfront cost loan and you’ll know the exact amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I am charged?
Business loan interest rates vary due to factors such as the amount that is of money borrowed, the business assets the funds will be used for in addition to the industry that the company operates in, how long the business has been in operation and in the event that the business has sufficient cash flow to support the loan, and the overall well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll be aware of the amount it is that you be required to pay, and at what time, from the first day. There’s no 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 request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay the entire amount of the loan early at any time.
If you do decide to take this route, please call our helpful company loan professionals. They will provide you with repayment details as well as an early payout amount. It will be calculated using the sum of the remaining principal amount and accrued interest to the time of the early payout, plus 1.5% of the principal remaining and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Security of your data, and being transparent about the ways we gather the information we collect, use, share and ensure the security of your information is of huge importance and an integral 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 sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and security. We make use of an advanced bank verification system link to immediately verify the bank account details online. This allows us to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner uses an asset that they own to secure a loan. The asset could be an asset belonging to the personal, like the family home or it could be a company asset such as a vehicle as well as a piece of machine.
The vast majority of the lenders even the largest banks, are inclined to make loans secured by an asset. If you’re having trouble paying back the loan, then the asset could be taken over by the lender. In essence it’s a way of securing additional financing using the value of what you already have.
Are I require security for a company loan?
For loans of up to $150K, there is no requirement for asset security in advance to gain access to the funds but we do need the personal guarantee. As long as you follow your loan commitments (as detailed in the loan contract) the security of assets is not needed. For loans over $150K generally, you can get the option of a personal ensure and security is provided in the form of the charge of assets.