FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Eastern Heights Small Business Loans
Let me know what you think of the Eastern Heights Small Business Loans
Eastern Heights unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
Apply for this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and the funds could be available in just 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. Our business loan is a cash-based loan therefore you’ll be aware of the total amount payable including any fees, interest or charges. Then, it is broken down into either weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every company purpose including managing cash flows, company remodels and marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal purposes.
Concerning Larger Eastern Heights Business Loans
What is the Larger Eastern Heights Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
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 generate an annual revenue of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A Business Loan of a larger size can be used to fund almost all company purpose including business renovations, to purchase new equipment or inventory for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It’s by taking a charge on assets, and may include the registration of this through the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is general in nature rather than stipulating security over an asset. The person signing the ensure is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR grants the priority of personal property assigned in accordance with the date on which a security interest that is registered.
A caveat is a legal document lodged to provide an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans that exceeds $250K we can offer an initial pre-approval to simplify the process. It is possible to get this done without credit checks and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial health questions. It is neither an offer nor a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer you might receive could be based on different terms.
The application process
Do I have the right to receive funds?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six 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 application process is quick and simple. Just fill out the online application in few minutes and an experienced business credit specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months of bank statements.
In addition, 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 credit is over $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically offer a response in one hour, provided you submit your request during standard business timings and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can provide the decision within just the span of one business day.
For the Larger Business Loan ($100K to $500K) we may be in a position to provide you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved in the space of 24 hours.
The most effective method for you to apply is make sure you apply during standard business hours, and allow us to use our advance bank verification to verify your bank information online. If you decide to upload copies of your bank accounts, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer within one hour, provided you submit your request within normal business times and permit us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statements, we will be able to provide the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be in a position to offer the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based upon the circumstances for each application. Some offers have been approved in just 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours and permit us to use the modern bank verification to instantly check your bank’s information online. If you send us copies of your bank statement, it will take a little longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a specific amount we look at a variety of variables that determine the health that is your business as well as the amount of payments your business can support. The amount you receive from your loan will depend on the specific circumstances the business.
When you apply for a specific amount we look at a range of elements to determine your health of the business and the level of the repayments your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for our business credit, we will assess the risk assessment for your business and provide an individualised offer including the amount of the loan, the duration and the interest rates. The business loan is a loan that is priced upfront so you will be aware in advance of the total amount payable including any charges, interest rates or fees.
What determines the amount I pay?
Business loan interest rates vary due to factors like the amount of money of money borrowed, the company assets the funds are used to purchase and the sector the business operates in, how long the company has been operating as well as in the event that the business has sufficient cash flow to support the loan, and also the general well-being or financial standing of the company.
What are the costs?
There are no hidden costs for our company loans, and you’ll be aware of the amount it is that you need to pay and when, starting from the first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to request a credit loan without any upfront costs or any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay off the loan early?
You can repay the entire amount of the loan early at any time.
If you decide to do this please talk to one of our helpful company credit professionals. We will provide you with details on repayment and an early payout figure. This is calculated as the sum of the remaining principal amount and any accrued interest at the time of early payment in addition to 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow standard, we provide payments that are either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We make use of an advanced bank verification system link to immediately verify your bank account details online to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a company owner makes use of the assets they have to get the loan. The asset can be an individual asset, such as the family home or a business property like a truck or piece or equipment.
The vast majority of banks, not just the largest banks, are inclined to guarantee loans against assets. If you have trouble paying back the loan then your assets could be taken over by the lender. In essence, it is the process of securing additional financing using the value of what you already have.
What do I need security for a company loan?
For loans that exceed $150,000, the requirement for asset security is not required upfront to access the money but we do need an individual guarantee. As long as you follow your loan commitments (as specified in your loan contract document) the security of assets is not needed. For loans of over $150K typically, you will need an individual guarantee and security in the form of a charge over assets.