FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Eastern Heights Small Business Loans
Tell me about the Eastern Heights Small Business Loans
Eastern Heights unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from an traditional business loan?
You can apply for this Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and the money could be in your account within 24 hours. Traditional company loans are based on an annual interest rate as well as other fees and charges. This company loan is a pre-paid loan so you will know ahead of time the amount you will have to pay, including any fees, interest or charges. This is then broken down into either a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business reason, such as the management of cash flow, business remodeling, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Eastern Heights Business Loans
What is the Larger Eastern Heights Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been operating for at least three years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be utilised?
A larger business loan is a great option for almost any business need, including business renovations, to purchase equipment or inventory, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This is as a result of an charge over assets, and could include registration in the PPSR or making a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature rather than stating the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR gives preference over private property assigned in accordance with the date on which a security interest that is registered.
A caveat is a legal document lodged to provide notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more it’s possible to offer a preliminary pre-approval to help smooth out the process. We could be able to apply for this without a credit check and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial health questions. This is in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you are offered could be based on different terms.
Application process
Do I have the right to receive funds?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a couple minutes, and an experienced business lending specialist will contact you to guide you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we typically offer an answer within one hour if you apply in quality company timings and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements , we are able to offer a decision in just 1 company day.
For Larger Business Loans ($100K to $500K) we could be in a position to provide you with a conditional pre-approval in about six hours. After you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Some transactions have received approval in the space of 24 hours.
The fastest way for you to apply is ensure you apply during normal company hours. Also, let us use the advance bank verification to check your bank’s information online. If you choose to send us duplicates of your banking statements , it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour, provided you make your application during normal business time and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statements we can offer a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of offer the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some agreements have been approved in less than 24 hours.
The fastest way would be to ensure you apply during standard business hours. You can also allow us to use our sophisticated bank verification link to instantly verify your bank information online. If you decide to 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 and $500,000. When you submit an application for a specific amount we look at a variety of aspects for determining how much we can lend you health for your company as well as the amount of repayments that your company will be able to support. The total amount of the loan will be determined by the specifics the company.
When you make an application for a set amount, we consider a variety of elements to determine your health for your company and the amount of repayments that your business is able to afford. The total amount of your loan will be contingent on the particulars that are unique to your company.
Fees & repayments
How do you charge for an business loan?
When you apply for business loans with us company credit, we’ll assess the risk assessment of your company and provide you with a tailored proposal that includes the amount of loan, the term and interest rates. The company loan is an upfront-priced loan so you will be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I pay?
Interest rates for company loans rates depend on a variety of factors such as the amount that is borrowed, the company assets the funds will be used for as well as the field the business operates in, the long the business has been operating as well as how long the business has enough cash flow to pay for the loan, and overall health or financial standing of the company.
What are the fees?
There are no hidden fees for our business loans, and you’ll know precisely how much you’ll be required to pay and when, from day one. There’s no compounding interest, and no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You can request a credit loan no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with setting up and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of your loan in full at any time.
If you decide to pursue this option, please speak to our friendly company loan professionals. They will offer you with repayment details as well as an early payout amount. This is calculated as the sum of the principal remaining and the accrued interest up to the time of the early payout in addition to 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
To make sure you do not miss repayments and to fit in your cash flow schedule, we provide payments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being upfront about how we collect information, use it, and exchange it, as well as secure your information, is of huge importance and a vital element 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 qualified for our commitment to security for our clients and security. We use an advanced bank verification system link to immediately confirm your bank account information online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner uses assets they own to secure the funds for a loan. The asset can be either an individual asset, such as the family home or a company property like a truck or other piece of machinery.
The vast majority of banks, even the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan, then the asset could be taken over by the lender. In essence, it is an opportunity to secure new funding taking advantage of the value of what you already have.
Should I need security for a company loan?
For loans of up to $150K, the requirement for asset security is not required prior to the loan’s access however, we do need an individual guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract document) Asset security is not needed. For loans that exceed $150K, generally there is an individual guarantee and security that is in the form charges on assets.