FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Eastwood Small Business Loans
Tell me how you are able to avail the Eastwood Small Business Loans
Eastwood unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an traditional business loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and funds may be on your account within 24 hours. Traditional business loans reference an annual interest rate plus other fees and charges. This company loan is a pre-paid loan and you’ll be aware of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company purpose including the management of cash flow, business improvements, advertising, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
Concerning Larger Eastwood Business Loans
What is the Larger Eastwood Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funds for?
A large company loan is a great option for almost all company need, including company renovations, purchase of equipment or inventory or as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It is usually in the form of a charge on assets, and could include registering this with the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature rather than stipulating the security for a particular asset. The person signing the ensure is personally responsible if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
Caveats are legal form of document to provide the public notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan of $250K or more, we may offer an initial pre-approval that will help make the process. It is possible to do this without credit checks 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 questions. It’s not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you are offered could have different conditions.
Application process
Do I qualify for funds?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (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 quick and simple. Just fill out the online application within a few minutes and an experienced business loan specialist will contact you to assist you.
To apply for up $100,000 you’ll require identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent, 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, and interim current financial year financials such as age-related payables and aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour if you apply during quality business hours and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statement, we’ll offer a decision within one business day.
If you are applying for a Larger Business Loan ($100K or more) we may be capable of offer the conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be quicker based on the specifics of each application. Some deals have been approved in 24 hours.
The quickest method is to make sure you apply during standard business hours. Also, let us use the advance bank verification link to confirm your bank details online. If you opt to upload documents from your account accounts, it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we typically offer a response in one hour if you submit your request in standard business time and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll offer a decision within an business day.
For the Larger Business Loans ($100K up to $500,000) we might be in a position to offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the specifics of each application. Some deals have been approved in just 24 hours.
The fastest way can be ensure you apply during normal business hours. Also, allow us to use our advance bank verification link to confirm your bank details online. If you opt to upload documents from your account accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a specific amount we consider a variety of aspects to determine what is the health that is your business and the level of repayments your company can afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your company.
When you make an application for a set amount, we will consider a number of variables to assess how much we can lend you such as health that is your company and the extent of repayments your business will be able to support. The amount you receive from your loan will be contingent on the specifics for your company.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to make an application for the business credit, we will assess the risk profile the business and provide you with a customised offer that includes the loan amount, the terms and interest rates. It is a business loan is an upfront-priced loan which means you be aware of the total amount payable including any charges or interest.
What determines the rate that I pay?
The interest rates on business loans rates depend on a variety of factors like the amount of money that is borrowed, what company assets the funds will be used for in addition to the industry that the business operates in, the long the company has been running, whether the business has enough cash flow to cover the loan, and the overall well-being as well as creditworthiness business.
What are the cost?
There are no hidden costs with our company loans. You’ll be aware of the amount you’ll be required to pay, and when, right from the day you sign up. There’s no compounding interest, and no extra fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to apply for a loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can repay the total amount of your loan at any point in time.
If you decide to pursue this option, please speak to our friendly company loan professionals. They’ll offer you with details on repayment and an early payment figure. This will be calculated as the total of the principal amount remaining and accrued interest to the date of early payout and 1.5 percent of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about the ways we gather the information we collect, use, share and secure your information, is vital and is a crucial 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 personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We utilise a sophisticated bank verification system to instantly verify your bank account information online, allowing us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner utilises the assets they have to obtain the funding. The asset can be either an individual property, such as the family home, or a business property like a truck or other piece of machinery.
The vast majority of lending institutions, including the largest banks, are inclined 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 means of securing new financing using the value of what you already have.
Do I need security to secure an business loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds However, we do need the personal guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150K, generally there is an individual guarantee and security is provided in the form of a charge over assets.