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 can avail the Eastwood Small Business Loans
Eastwood unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from the traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and the money could be on your account within 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. Our company loan is a pre-paid loan which means you be aware of the total amount payable including any fees, interest or charges. This is then broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business purpose including the management of cash flow, business remodeling, marketing to purchase inventory or new equipment, 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 size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to have been in operation for at least 3 years, and have an annual income of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be utilised?
A larger business loan can be used to fund almost every company reason, such as company remodeling, buying equipment or inventory or as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It’s by taking a charge on assets, which could also include registration in the PPSR or filing as a caveat.
A director’s or personal guarantee is a promise to repay a loan which is generally in nature rather than defining security over a particular asset. The person signing the guarantee is personally responsible if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR gives the priority of personal property granted according to the date a security interest has been registered.
An affidavit is an official document filed to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000 it is possible to offer an initial pre-approval that will help ease the process. It is possible to get this done without credit checks 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 is in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer that you receive could be subject to different terms.
Application process
Do I qualify for funds?
You are eligible to apply for an business 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)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a few minutes and a dedicated business loan specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we can often provide an answer within an hour if you make your application at quality company time and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statement, we’ll provide a decision within one company day.
For the Larger Business Loan ($100K to $500K) we may be likely to offer you with a conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some agreements have been approved within 24 hours.
The quickest way to apply is to make sure you apply during standard business hours. You can also permit us to use the advance bank verification to confirm your bank details online. If you send us duplicates of your banking statement, it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we can often offer an answer within one hour – as long as you submit your request at normal business times and allow us to use the bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statements, we will be able to offer an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we could be able to offer you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Some agreements have been approved in the space of 24 hours.
The fastest way is to make sure you apply during normal business hours, and let us use the sophisticated bank verification link to check your bank’s information online. If you choose to send us duplicates of your banking statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount we look at a variety of aspects for determining the health of your business and the extent of repayments that your company is able to afford. The amount you receive from the loan will be determined by the specific circumstances for your company.
When you make an application for a specific amount we consider a variety of variables to determine the well-being for your business and the level of payments your business can afford. The total amount of your loan will be determined by the specifics of your business.
Fees & repayments
How much do you charge for an business loan?
When you make an application for our business loan, we’ll assess the risk assessment for your company and offer you with a customised offer that includes the amount of the loan, the duration and the interest rates. The company loan is an upfront priced loan therefore you will know in advance the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I pay?
Business loan interest rates differ based on various variables like the amount to be borrowed, the business assets the funds are used to purchase in addition to the industry that the company is in, how long the company has been running, in the event that the company has sufficient cash flow to pay for the loan, and also the overall well-being as well as creditworthiness company.
What are the cost?
There are no hidden fees with our company loans. You’ll know precisely what it is that you need to pay, and when, right from the first day. There’s no compounding and no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to get a cash loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You may choose to pay back all of your loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful company lending professionals. The specialists will provide you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal amount remaining and the accrued interest up to the date of early payout plus 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow routine, we provide repayments either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about how we collect the information we collect, use, share and safeguard your data, is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system to immediately verify your bank account information online to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner uses an asset that they own to get the funding. The asset could be an asset belonging to the personal, like the family home, or a company asset like a truck as well as a piece of machine.
The vast majority of banks, not just the big banks, tend to guarantee loans against an asset. If you are having difficulty paying back the loan then the asset could be sold by the lender. In essence it’s a way of securing new financing using the worth of the asset you already have.
Do I need security for a company loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access however, we require a personal guarantee. need a personal guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract) the security of assets will never be required. For loans of over $150K generally there is a personal ensure and security in the form of a charge over assets.