FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Hillcrest Small Business Loans
Let me know how you are able to avail the Hillcrest Small Business Loans
Hillcrest unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from the traditional business loan?
The application to get the Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and the funds could be in your account within 24 hours. Traditional business loans have an interest rate per annum as well as other fees and charges. The business loan is a cash-based loan which means you be aware in advance of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company need, such as managing cash flows, company improvements, advertising to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
About larger Hillcrest Business Loans
What is the Larger Hillcrest Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to be trading for at least 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funds be utilised?
A larger company loan can be used for almost any business use, including company improvements, purchasing inventory or new equipment for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. It is usually by way of charge against assets, which could also include registering this on the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally based rather than stipulating the security of a specific asset. The person signing the guarantee is personally responsible if the business the borrower fails to make the repayment.
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 allows prioritisation over property that is personal to be assigned according to the date the security interest has been registered.
Caveats are legal document that is filed to provide the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of $250K or more it is possible to offer a preliminary pre-approval to help simplify the process. It is possible to get this done without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being checks. This is not an offer of credit or guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer you are offered could be subject to different conditions.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Complete the online form in just a few minutes, and a dedicated business expert in lending will contact you to help you.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent twelve months of bank records, IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year, Aged Payables and Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we can often offer an answer within an hour – as long as you make your application at standard company times and let us use the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your banking statements , we will be able to provide the decision within just the span of one company day.
For the Larger Business Loan ($100K to $500K) we could be likely to provide you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours, and allow us to use the modern bank verification to confirm your bank details online. If you choose to upload copies of your bank statements , it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer in just one hour if you apply at normal business hours and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statement, we’ll provide the decision in just an business day.
For the Larger Business Loans ($100K or more) We may be able to offer you with conditional pre-approval in about six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain agreements have been approved in just 24 hours.
The quickest method would be to ensure you apply during standard business hours. You can also let us use the modern bank verification link to instantly confirm your bank details online. If you decide to upload the copies of bank statements it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a specific amount we look at a variety of factors to determine how much we can lend you well-being for your company as well as the amount of the repayments your company is able to afford. The total amount of the loan will be determined by the specific circumstances of your business.
When you make an application for a specific amount we consider a variety of factors to assess how much we can lend you such as well-being that is your company and the amount of payments your business will be able to support. The total amount of your loan will be contingent on the specifics for your company.
Fees & repayments
What is the cost for a company loan?
When you make an application for one of our business loan, we’ll assess the risk assessment that you have for your business and provide you with a tailored offer including loan amount, term and interest rates. A company loan is a loan that is priced upfront so you will know in advance the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on a variety of factors such as the amount that is borrowed, what company assets the funds will be used for in addition to the industry that the company operates in, the long the company has been in operation as well as whether the company has enough cash flow to cover the loan, and the general health as well as creditworthiness business.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much it is that you be required to pay, and at what time, from the first day. There’s no compounding and no additional fees (as as you make your payments in time).
We do not charge an application fee. You can get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Do I have the option of paying off the loan early?
You may choose to pay back the entire amount of your loan in full at any time.
If you are deciding to take this route, please contact our helpful company loan experts. We will provide you with repayment details and an early payout figure. This will be calculated as the total of the principal amount remaining and any accrued interest at the time of early payout, plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To make sure that you don’t miss repayments and to fit in with your cash flow standard, we offer repayments that are either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing the ways we gather, use, exchange and secure your information, is of huge importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We employ a highly sophisticated bank verification system link to immediately verify your bank account information online so we can offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner uses the assets they have to secure the loan. The asset can be an individual property, such as the family home or a company asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, not just the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan, the asset could be offered for sale by the lender. In essence, it is a way of securing additional financing taking advantage of the value of what you already have.
What do I require security to secure an business loan?
For loans of up to $150,000, it is not necessary to secure assets prior to the loan’s access, however we require a personal guarantee. require an individual guarantee. As long as you follow the terms of your loan (as detailed in the loan contract) the security of assets will never be needed. For loans over $150,000 typically, you will need personal guarantee and security in the form the charge of assets.