FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Eagleby Small Business Loans
Tell me how you are able to avail the Eagleby Small Business Loans
Eagleby unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from the traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or over the phone, receive an instant response and funds may be on your account within 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. Our company loan is an upfront priced loan therefore you’ll be aware of the total amount to be paid, including any fees, interest or charges. This is then broken down into either weekly or daily installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business need, such as control of cash flow company remodeling, marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Eagleby Business Loans
What is the Larger Eagleby Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been trading for at least 3 years and generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be utilised?
A larger business loan can be used to fund almost all company purpose including company 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 one that requires security?
Asset security is needed to access funding over $150,000. This is in the form of a charge against assets, which could also be registered with the PPSR or registering a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is general in nature, rather than specifying the security for a particular asset. The person signing the guarantee is personally responsible if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including goods or assets). The PPSR gives the priority of personal property assigned according to the date the registration of a security interest.
An affidavit is an official document that is filed to provide the legal claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger business loans of $250,000 or more we may be able to provide an initial pre-approval that will help ease the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial well-being checks. It is not an offer or guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer you may receive may be based on different conditions.
The application process
Do I qualify for funds?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form within a couple minutes, and an experienced company credit specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent and 12 months of bank records, IRD statement and the last two years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) we can often provide a response in one hour if you submit your request in standard business times and let us utilise the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements we can offer an answer within the span of one company day.
For the Larger Business Loan ($100K and up) we may be likely to offer you with conditional pre-approval in about six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The most efficient method is to ensure you apply during normal business hours, and let us use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank accounts, it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within one hour, provided you make your application at normal business time and you allow us to use the bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements we can provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be in a position to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Certain agreements have been approved in just 24 hours.
The fastest method can be make sure you apply during standard business hours and permit us to use the sophisticated bank verification to verify your bank account information online. If you decide to send us the copies of bank statement, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of factors to determine your health that is your business and the amount of the repayments your business is able to afford. The total amount of your loan will depend on the particular circumstances of your company.
If you apply for a certain amount, we look at a range of variables to assess the well-being for your business and the extent of repayments your business is able to afford. The amount you receive from your loan will be determined by the particulars for your company.
Fees & repayments
How much do you charge for an business loan?
When you apply for the company financing, we will assess the risk assessment the business and provide you with a customised offer, including the amount of loan, the term and interest rates. This company loan is an upfront cost loan so you will know in advance the total amount to be paid, including any charges or interest.
What is the factor that determines the price I pay?
Interest rates for company loans rates depend on several variables like the amount to be borrowed, the business assets the money are used to purchase in addition to the industry that the business is operating in, how long the company has been in operation as well as whether the business has enough cash flow to fund the loan, and also the overall health or creditworthiness of the business.
What are the charges?
There aren’t any hidden costs with our business loans, and you’ll be aware of the amount you be required to pay and when, right from the first day. There’s no compounding and no extra fees (as long as you make your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans with absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You may choose to pay back the entire amount of your loan at any point in time.
If you do decide to pursue this option, please speak to our friendly business loans experts. The professionals will offer you with details on repayment and an early payment figure. It will be calculated using the total of the remaining principal amount and any accrued interest at the time of early payment and 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments that are either daily or weekly. They are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Security of your data, and knowing how we collect information, use it, and exchange it, as well as ensure the security of your information is of paramount 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 protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated banking verification system to instantly verify your bank account information online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a company owner uses the assets they have to obtain the loan. The asset can be either an individual property, such as the family home, or an business property like a truck or piece of equipment.
The majority of banks, not just the largest banks, are inclined to secure loans against an asset. If you’re struggling to pay back the loan, then the asset might be offered for sale by the lender. In essence it is an opportunity to secure additional financing using the worth of the asset you already own.
Do I require security for an company loan?
For loans of up to $150K, it is not necessary to secure assets prior to the loan’s access but we do require the personal guarantee. In the event that you fulfill your loan commitments (as detailed in the loan contract) and you are able to meet your obligations, asset security is not required. For loans that exceed $150,000, typically, you will need an individual ensure and security in the form of a charge over assets.