FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Eastwood Small Business Loans
Let me know how you are able to avail the Eastwood Small Business Loans
Eastwood unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and the money could be on your account within 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. We offer a company loan is an upfront priced loan and you’ll know in advance the amount you will have to pay, including any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business reason, such as control of cash flow company improvements, advertising, to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Eastwood Business Loans
What is the Larger Eastwood Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to be in operation for at least 3 years and generate an annual revenue of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used to fund almost any company purpose including company remodeling, buying equipment or inventory for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It’s in the form of a charge over assets, and could include registration with the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature, rather than specifying the security for a particular asset. The person who signs the guarantee is personally responsible if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
Caveats are legal form of document to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan of $250K or more we can offer an initial pre-approval that will help simplify the process. We might be able to apply for this without a credit verification 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 well-being checks. It’s not an offer of credit or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you might receive could have different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a few minutes and an experienced company credit specialist will call you to help you.
To apply for up $100,000 you’ll need identification details (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K – $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank statements, IRD statement, last 2 years finalised financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we typically offer a response in one hour if you apply at quality business hours and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements , we are able to offer an answer within just an company day.
For Larger Business Loans ($100K and up) we may be capable of offer you with conditional pre-approval in about 6 hours. After you’ve signed your 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 agreements have been approved in the space of 24 hours.
The quickest way to apply is to ensure you apply during normal business hours and allow us to use our modern bank verification link to instantly verify your bank information online. If you choose to upload the copies of bank statement, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) We can usually provide an answer in just one hour, provided you apply within standard business timings and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements, we are able to provide an answer within 1 business day.
For the Larger Business Loans ($100K and up) We may be likely to offer the conditional pre-approval in around six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Some deals have been approved within 24 hours.
The quickest method can be make sure you apply during normal business hours, and let us use the modern bank verification link to verify your bank account information online. If you opt to upload duplicates of your banking accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount, we will consider a number of factors to determine your well-being of your business and the amount of repayments your company will be able to support. The total amount of your loan will be contingent on the specifics for your business.
If you apply for a set amount, we look at a range of variables to assess how much we can lend you such as health of your business and the amount of the repayments your business can afford. The total amount of your loan will depend on the particulars for your business.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for one of our company credit, we will assess the risk profile of your company and provide you with a tailored proposal that includes loan amount, term and the interest rates. A business loan is an upfront cost loan which means you be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I pay?
Interest rates for company loans rates vary due to factors such as the amount that is borrowed, the business assets the funds will be used for in addition to the industry that the business is in, how long the business has been operating as well as in the event that the business has enough cash flow to fund the loan, as well as the overall health as well as creditworthiness business.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll know precisely what it is that you be required to pay and at what time, from day one. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You can make an application for loans with without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated in establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You can choose to repay the entire amount of your loan in full at any time.
If you choose to pursue this option, please speak to our friendly company loan experts. They’ll provide you with repayment details and an early payment figure. This is calculated as the sum of the principal balance and the accrued interest up to the date of early payout and 1.5% of the principal balance plus any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being transparent about the ways we gather, use, exchange and ensure the security of your information is of paramount importance and a vital 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 techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to security for our clients and privacy. We employ an exceptionally sophisticated banking verification system to immediately verify your bank account details online to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner uses the assets they have to make the funds for a loan. The asset may be an individual property, such as the family home or an business asset such as a vehicle as well as a piece of machine.
The majority of the lenders even the major banks, prefer to secure loans against an asset. If you are having difficulty paying back the loan then your assets could be transferred to the lender. In essence, it’s the process of securing new funding taking advantage of the value of what you already have.
Are I require security for a company loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money but we do need an individual guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans of over $150K typically, you will need an individual ensure and security in the form charges on assets.