FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Everard Park Small Business Loans
Tell me what you think of the Everard Park Small Business Loans
Everard Park unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from a traditional business loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes over the phone, receive an immediate response, and the money could be on your account within 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. The company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount payable including the interest, fees and charges. Then, it is broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company reason, such as the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
About Larger Everard Park Business Loans
What is the Larger Everard Park Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to have been operating for at least three years and have an annual turnover of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funds be utilised?
A larger company loan can be used to fund almost all company reason, such as company improvements, purchasing equipment or inventory, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It is usually in the form of a charge on assets, and could be registered on the PPSR or filing as a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally in nature rather than specifying the security for a particular asset. The person who signs the ensure is personally accountable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR permits preference over private property assigned depending on the date that a security interest was registered.
An affidavit is an official document that is filed to offer the legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger company loans of more than $250,000 we may be able to provide an initial pre-approval in order to make the process. We could be able to get this done without a credit check and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes answering a couple of financial well-being checks. This is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could have different terms.
The application process
Do I qualify for funds?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a couple minutes, and an experienced company credit specialist will contact you to assist you.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details for application including credit consent as well as 12 months bank statement, an IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer within an hour if you apply during standard company hours and you allow us to utilise the bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll offer the decision within the span of one company day.
For Larger Business Loans ($100K up to $500,000) we may be able to provide the conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Some transactions have received approval within the space of 24 hours.
The most effective method is to ensure you apply during standard business hours. Also, allow us to use the modern bank verification to instantly verify your bank information online. If you decide to send us documents from your account statement, it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K or more) We can usually provide a response in one hour if you make your application within normal business time and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements, we are able to offer a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be in a position to offer you with conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain offers have been approved within 24 hours.
The most effective method for you to apply is ensure you apply during standard business hours. You can also allow us to use the sophisticated bank verification link to check your bank’s information online. If you upload copies of your bank statement, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a particular amount, we take into consideration a range of variables for determining how much we can lend you well-being for your company and the extent of repayments that your business can support. The total amount of the loan will be determined by the particular circumstances of your business.
When you submit an application for a set amount, we will consider a number of elements to assess how much we can lend you such as well-being of your company as well as the amount of repayments that your company is able to afford. The total amount of your loan will be determined by the particular circumstances of your business.
Fees & repayments
How much should you charge for a company loan?
If you decide to apply for our company loans, we’ll assess the risk assessment of your company and provide you with a customised offer, including the amount of loan, the term and the interest rates. This company loan is an upfront cost loan which means you be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I am charged?
The interest rates on company loans rates differ based on various factors such as the amount that is borrowed, the company assets the funds are used to purchase in addition to the industry that the business operates in, how long the business has been in operation for, what percentage of the business has enough cash flow to fund the loan, and general well-being or creditworthiness of the business.
What are the cost?
There are no hidden costs with our company loans. You’ll know exactly how much you’ll be required to pay, and when, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an application fee. You can get a cash loan with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay off the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you decide to take this route, please talk to one of our helpful business lending professionals. The experts will provide you with details on repayment along with an early payout estimate. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payment and 1.5% of the principal remaining plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payments and to work your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about the ways we gather, use, exchange and safeguard your data, is of paramount importance and a vital 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 secure your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We utilise a sophisticated bank verification system that allows you to instantly verify the bank account details online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner utilises an asset they own to secure the loan. The asset could be a personal asset like the family home or it could be a company asset such as a vehicle or piece or equipment.
The majority of lending institutions, not just the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan, then your asset may be offered for sale by the lender. In essence it’s the process of securing new financing by using the worth of the asset you already have.
Do I need security to secure a business loan?
Up to $150K in loans no asset security is required upfront to access the money however, we require a personal guarantee. require a personal guarantee. As long as you follow the loan terms (as stated in the loan contract), asset security is not needed. For loans that exceed $150,000, generally, you are able to get an individual ensure and security in the form of an asset charge.