FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Eagle Farm Small Business Loans
Let me know what you think of the Eagle Farm Small Business Loans
Eagle Farm unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
You can apply to this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and the money could be on your account within 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. Our company loan is a cash-based loan and you’ll know in advance the total amount due, which includes any fees, charges or charges. This is then divided into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company reason, such as control of cash flow business improvements, advertising for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal purposes.
About Larger Eagle Farm Business Loans
What is the Larger Eagle Farm Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
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.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to be trading for at least 3 years with an annual turnover of $700K. Your business 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 of proving at minimum 12 months of business.
How can the funding be utilised?
A larger business loan can be used for nearly all company 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 a secured loan?
Asset security is needed for funding of more than $150,000. This is in the form of a charge on assets and can be registered through the PPSR or making as a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is generally in nature rather than stipulating the security for a particular asset. The person who signs the ensure is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR grants preference over private property granted in accordance with the date on which a registration of a security interest.
An affidavit is an official document filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250K we can offer a preliminary pre-approval to help ease the process. We might be able to apply for this without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial health checks. It is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you receive could be based on different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in few minutes and an experienced business expert in lending will be in touch to guide you through the process.
To apply for up to $100,000 you’ll require identification details (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often offer an answer within one hour, provided you apply within quality business times and permit us to utilise the bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statements , we are able to provide the decision in just an business day.
For the Larger Business Loan ($100K or more) we may be capable of provide you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Certain deals have been approved within the space of 24 hours.
The quickest way to apply is to make sure you apply during standard company hours, and allow us to use the advance bank verification to instantly verify your bank information online. If you send us documents from your account accounts, it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we typically offer an answer in just one hour if you apply in normal business hours and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements, we are able to provide the decision in just an business day.
For Larger Business Loans ($100K and up) we could be able to offer the conditional pre-approval within about six hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some transactions have received approval within 24 hours.
The fastest way is to ensure you apply during normal business hours. You can also allow us to use the sophisticated bank verification to instantly confirm your bank details online. If you upload copies of your bank statements, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a certain amount we will consider a number of aspects in order to assess the well-being for your business and the extent of payments your business can support. The amount you receive from your loan will depend on the particular circumstances of your company.
When you make an application for a set amount, we take into consideration a variety of elements to determine your health for your company and the amount of repayments your company can support. The total amount of your loan will be contingent on the specific circumstances for your business.
Fees & repayments
What is the cost for an company loan?
If you decide to apply for the business loans, we’ll assess the risk profile of your business and provide you with a customised proposal that includes the loan amount, the terms and the interest rates. A business loan is an upfront priced loan and you’ll be aware of the total amount you will have to pay, including interest rates, fees or charges.
What determines the amount I will be charged?
Business loan interest rates differ based on various factors like the amount of money that is borrowed, what company assets the money will be used for, the industry the company operates in, the long the business has been operating, how long the company has enough cash flow to pay for the loan, and the general health or creditworthiness of the company.
What are the cost?
There aren’t any hidden costs with our company loans. You’ll know precisely what you’ll be required to pay and when, right from the day you sign up. There’s not any compounding interest and no extra fees (as long as you make your payments punctually).
We do not charge an application fee. You can apply for a loan no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan early?
You may choose to pay back the total amount of your advance loan at any time.
If you do decide to pursue this option, please call our helpful business credit professionals. They’ll 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 the early payout in addition to 1.5% of the principal remaining plus any outstanding fees.
How do repayments work?
To help you avoid missing payments and to work with your cash flow general, we offer repayments that are either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear how we collect, use, exchange and protect your information, is of huge importance and an integral aspect 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 personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We employ a highly sophisticated bank verification system that allows you to immediately verify your bank account information online to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner utilises an asset they own to obtain the loan. The asset could be an individual asset, such as the family home or a company property like a truck or piece or equipment.
The majority of banks, including the largest banks, are inclined to make loans secured by an asset. If you’re having trouble paying back the loan, then the asset might be transferred to the lender. In essence it is means of securing new funding making use of the value of what you already own.
Do I require security to secure an company loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds however, we do require a personal guarantee. As long as you follow your loan commitments (as specified in the loan contract), asset security is not required. For loans over $150,000 generally, there is a personal guarantee and security that is in the form charges on assets.