FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Hillcrest Small Business Loans
Let me know how you can avail the Hillcrest Small Business Loans
Hillcrest unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from an ordinary business loan?
The application for the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and the money could be in your account within 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. Our business loan is a cash-based loan and you’ll know ahead of time the total amount due, which includes the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company reason, such as control of cash flow business renovations, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal reasons.
About larger Hillcrest Business Loans
What is the Larger Hillcrest Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan that is this large the company needs to be trading for at least 3 years with an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be used for?
A Business Loan of a larger size can be used for almost every company use, including company remodeling, buying new equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This is in the form of a charge against assets, which could also include registration in the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally based rather than defining the security of a specific asset. The person who signs the guarantee is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR gives priority over personal property to be granted depending on the date that a registration of a security interest.
Caveats are legal form of document to provide an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of $250,000 or more we can offer a preliminary pre-approval to help smooth out the process. We might be able to do this without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health checks. It is not an offer of credit or guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you may receive may be based on different conditions.
Do I have the right to receive funds?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a couple minutes, and a dedicated business loan specialist will call you to help you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s License), an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually offer an answer in just one hour, provided you submit your request during quality business time and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we are able to provide a decision in just an company day.
For Larger Business Loans ($100K to $500K) we could be likely to offer you with a conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some transactions have received approval within the space of 24 hours.
The quickest method can be make sure you apply during standard business hours. Also, let us use the advanced bank verification system link to confirm your bank details online. If you decide to upload copies of your bank statements , it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we can often provide an answer within one hour – provided you make your application within standard business time and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can provide an answer within 1 business day.
If you are applying for Larger Business Loans ($100K and up) We may be capable of offer the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the circumstances of each application. Certain agreements have been approved within less than 24 hours.
The fastest way is to make sure you apply during standard business hours and permit us to use the advanced bank verification system to instantly verify your bank account information online. If you choose to send us the copies of bank statements, it will take a little longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we take into consideration a range of variables in order to assess your well-being of your business and the extent of repayments your business can support. The total amount of your loan will depend on the specifics of your business.
If you apply for a set amount, we will consider a number of factors to determine your well-being of your company and the level of repayments your company can afford. The amount you receive from the loan will be determined by the particulars the business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you apply for our company financing, we will assess the risk assessment that you have for your business and provide you with a customised offer that includes the loan amount, the terms and interest rates. It is a company loan is an upfront cost loan therefore you will be aware of the total amount due, which includes any charges, interest rates or fees.
What determines the amount I pay?
Business loan interest rates depend on several factors such as the amount that is borrowed, the business assets the funds are used to purchase in addition to the industry that the company is operating in, how long the business has been in operation for, what percentage of the business has sufficient cash flow to pay for the loan, as well as the overall well-being or creditworthiness of the company.
What are the fees?
There are no hidden costs with our business loans, and you’ll know precisely what it is that you be required to pay and when, right from the first day. There’s no compounding and no additional fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You can get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan earlier?
You can decide to repay the total amount of your loan at any point in time.
If you decide to take this route, please talk to one of our helpful business loan experts. They will offer you with details on repayment along with an early payout estimate. It will be calculated using the total of the remaining principal amount and any accrued interest at the time of early payment in addition to 1.5% of the principal remaining plus any outstanding fees.
What are the repayment methods?
To ensure you do not miss payment dates and to align with your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear how we collect information, use it, and exchange it, as well as secure your information, is of huge importance 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 personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We use an advanced bank verification system that allows you to instantly verify your bank account information online so we can provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from assets they own to make the funding. The asset may be a personal asset like the family home, or an business property like a truck or piece or equipment.
The majority of the lenders including the big banks, tend to make loans secured by assets. If you’re having trouble paying back the loan then your asset may be sold by the lender. In essence it is the process of securing new financing by taking advantage of the value of what you already own.
Do I require security for an business loan?
For loans that exceed $150K, no asset security is required prior to the loan’s access, however we do require the personal guarantee. If you adhere to your loan commitments (as specified in the loan contract) the security of assets will never be needed. For loans that exceed $150,000, generally there is the option of a personal ensure and security is provided in the form of a charge over assets.