FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Eastwood Small Business Loans
Tell me what you think of the Eastwood Small Business Loans
Eastwood unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and funds may be available in just 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. Our company loan is an upfront priced loan therefore you’ll know in advance the total amount to be paid, including the interest, fees and charges. This is then broken down into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business need, such as the management of cash flow, company renovations, marketing to purchase inventory, new equipment, as general working capital and so much more. The loan is not available for personal purposes.
About the Larger Eastwood Business Loans
What is the Larger Eastwood Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to be in operation for at least 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funding be utilised?
A larger company loan is a great option for almost any business use, including business renovations, to purchase equipment or inventory or as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This can be done in the form of a charge against assets and can include registration with the PPSR or making as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is generally in nature rather than defining the security of a specific asset. The person signing the guarantee is personally accountable if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR gives the priority of personal property assigned depending on the date that a registration of a security interest.
Caveats are legal document that is filed to provide an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K, we may offer an initial pre-approval to make the process. We could be able to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial well-being checks. It is not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you receive could be subject to different conditions.
Application process
Can I be eligible for funding?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Just complete the online application within a few minutes and a dedicated business lending specialist will call you to assist you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank records, IRD statement, last 2 years finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) We can usually offer a response in one hour, provided you submit your request during quality company hours and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you choose to send us copies of your bank statement, we’ll offer a decision in as little as one business day.
For the Larger Business Loan ($100K up to $500,000) we may be likely to offer you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved within the space of 24 hours.
The fastest way is to make sure you apply during normal business hours. You can also let us use the modern bank verification to instantly confirm your bank details online. If you send us copies of your bank accounts, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) We can usually provide an answer in just one hour – provided you submit your request during normal business timings and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements, we are able to offer a decision within the span of one business day.
For the Larger Business Loans ($100K to $500K) we might be likely to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Certain offers have been approved within the space of 24 hours.
The fastest way can be ensure you apply during standard business hours and let us use the modern bank verification to instantly confirm your bank details online. If you send us copies of your bank statements, it takes a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we will consider a number of variables in order to assess your health of your company and the extent of repayments that your business can afford. The total amount of your loan will be contingent on the specifics that are unique to your company.
When you apply for a certain amount, we take into consideration a variety of elements to determine your health for your company and the extent of payments your company can afford. The total amount of your loan will depend on the specifics for your business.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to make an application for one of our business credit, we’ll assess the risk assessment the business and offer you with a customised proposal that includes loan amount, term and the interest rates. The company loan is a loan that is priced upfront and you’ll know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I’m charged?
The interest rates on business loans rates differ based on various variables like the amount to be borrowed, the business assets the money will be used for, the industry the company operates in, how long the company has been in operation for, how long the business has sufficient cash flow to support the loan, and general health or financial standing of the company.
What are the cost?
There are no hidden costs with our business loans. You’ll know precisely what it is that you need to pay and at what time, from the very first day. There’s no compounding and no extra fees (as long as you make your payments punctually).
We don’t charge an Application Fee. You are able to make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you choose to proceed with 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 all of your loan early at any time.
If you are deciding to pursue this option, please speak to our friendly company credit specialists. We will offer you with details on repayment along with an early payout estimate. This is calculated as the sum of the principal balance plus any accrued interest as of the time of early payment plus 1.5% of the principal balance plus 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 cycle we offer repayments that are either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my data be secure?
Protecting your information, and being transparent about the ways we gather data, process, exchange and secure your information, is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We make use of an advanced bank verification system that allows you to instantly verify your bank account details online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a business owner utilises assets they own to obtain a loan. The asset could be a personal asset like the family home, or an company property like a truck or piece or equipment.
The vast majority of lenders, including the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan, the asset could be offered for sale by the lender. In essence, it’s a way of securing new financing by using the value of what you already own.
Should I need security to get an business loan?
For loans that exceed $150,000, it is not necessary to secure assets before you can access the money however, we require a personal guarantee. need a personal guarantee. If you adhere to your loan obligations (as stipulated 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 personal ensure and security is provided in the form of a charge over assets.