FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Evanston Park Small Business Loans
Tell me more about Evanston Park Small Business Loans
Evanston Park unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from the traditional company loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and funds may be in your account in 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. Our company loan is a loan that is priced upfront and you’ll know ahead of time the total amount payable including any interest, fees or charges. Then, it is divided into weekly or daily installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any business reason, such as the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
About the Larger Evanston Park Business Loans
What is the Larger Evanston Park Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to be operating for at least three years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funds be used for?
A Business Loan of a larger size can be used for almost every business reason, such as company renovations, to purchase 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 requires security?
Asset security is required for accessing funds over $150,000. This can be done as a result of an charge on assets, and may include registering this with the PPSR or making a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR permits preference over private property assigned depending on the date that a security interest was registered.
A caveat is a legal document that is filed to provide an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger business loans that exceeds $250,000 we may be able to provide an initial pre-approval in order to ease the process. It is possible to make this decision without a credit check and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial well-being questions. This is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer that you might receive could be based on different terms.
Application process
Are I eligible for funding?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form in just a few minutes, and an experienced business loan specialist will contact you to guide you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we usually offer an answer within one hour, provided you apply at standard company timings and you allow us to utilise the bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statements , we are able to offer a decision in just 1 business day.
For Larger Business Loans ($100K up to $500,000) we could be capable of provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain offers have been approved in less than 24 hours.
The most efficient method would be to make sure you apply during normal company hours and permit us to use the modern bank verification to instantly verify your bank account information online. If you upload duplicates of your banking accounts, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer within one hour, provided you make your application within standard business times and let us utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statement, we’ll provide a decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) we might be likely to offer you with conditional pre-approval within about six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some agreements have been approved within the space of 24 hours.
The most efficient method can be make sure you apply during standard business hours. Also, allow us to use our advanced bank verification system link to check your bank’s information online. If you opt to send us the copies of bank statement, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a certain amount, we will consider a number of elements that determine how much we can lend you health for your business and the amount of payments your company can afford. The total amount of your loan will depend on the particular circumstances of your business.
When you submit an application for a particular amount, we consider a variety of factors to assess how much we can lend you such as health that is your company and the extent of payments your company can afford. The total amount of your loan will depend on the particular circumstances for your business.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for business loans with us business loan, we’ll assess the risk profile of your business and offer an individualised offer including the amount of the loan, the duration and interest rates. The business loan is an upfront-priced loan therefore you will know in advance the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I will be charged?
Business loan interest rates vary due to factors including the amount that is borrowed, what business assets the funds are used to purchase, the industry the company operates in, how long the company is in operation for, what percentage of the company has enough cash flow to pay for the loan, and the general well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our business loans. You’ll know precisely how much it is that you need to pay, and when, from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You can get a cash loan no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You may choose to pay back all of your loan in full at any time.
If you choose to take this route, please contact our helpful business loans specialists. We will provide you with repayment details and an early payment figure. This is calculated as the total of the principal remaining and any accrued interest at the time of the early payout and 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
To ensure that you don’t miss payment dates and to align with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and being transparent about the ways we gather information, use it, and exchange it, as well as secure your information, is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We employ a highly sophisticated bank verification system link to immediately confirm 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)?
Asset-based borrowing occurs when an business owner utilises the assets they have to get the loan. The asset may be an individual asset, such as the family home, or a company asset like a truck or piece or equipment.
The vast majority of the lenders including the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan then the asset might be sold by the lender. In essence, it is an opportunity to secure new funding taking advantage of the value of what you already have.
Are I require security to get an business loan?
Up to $150,000 in loans there is no requirement for asset security in advance to gain access to the funds however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan commitments (as stipulated in the loan contract) the security of assets is not needed. If you take out loans in excess of $150,000 generally there is the option of a personal guarantee and security in the form an asset charge.