FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Eatons Hill Small Business Loans
Let me know more about Eatons Hill Small Business Loans
Eatons Hill unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
You can apply to get this Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and have the funds on your account within 24 hours. Traditional company loans refer to an annual interest rate plus other fees and charges. The business loan is an upfront priced loan so you will be aware in advance of the total amount payable including any fees, charges or charges. This is then broken down into either weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company use, including cash flow management, business renovations, marketing for purchasing inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal purposes.
About larger Eatons Hill Business Loans
What is the Larger Eatons Hill Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. The applicant must also be 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 to prove at minimum 12 months of business.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost every company use, including business renovations, to purchase equipment or inventory, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This can be done as a result of an charge on assets, which could also be registered on the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is generally in nature rather than stipulating the security for a particular asset. The person signing the guarantee is personally liable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date the registration of a security interest.
A caveat is a legal document lodged to provide the public notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan of more than $250,000 we may be able to provide an initial pre-approval in order to ease the process. We might be able to do this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial health checks. It is not an offer or guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer that you may receive may have different conditions.
Application process
Do I have the right to receive funds?
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)
- must show at least six months of business (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a few minutes and a dedicated company expert in lending will contact you to help you.
To apply for up $100,000 you’ll require identification details (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Information on the application including credit consent twelve months of bank records, IRD statements and the last two years’ finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within one hour if you make your application in standard company hours and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll offer a decision in just the span of one business day.
For the Larger Business Loan ($100K and up) we could be capable of provide you with a conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be quicker based on the specifics of each application. Certain deals have been approved within less than 24 hours.
The quickest method for you to apply is ensure you apply during standard company hours. You can also let us use the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we typically provide a response in one hour if you submit your request during standard business times and allow us to use the bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements, we are able to offer a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be capable of provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Certain agreements have been approved within less than 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours, and allow us to use the sophisticated bank verification link to verify your bank account information online. If you upload the copies of bank statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of aspects to determine what is the well-being for your company and the extent of payments your business can support. The total amount of your loan will depend on the particular circumstances that are unique to your business.
When you apply for a specific amount we look at a range of elements to assess how much we can lend you such as health of the business and the amount of repayments that your business can afford. The amount you receive from your loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for one of our business loan, we will assess the risk assessment for your company and offer you with a customised offer, including the amount of the loan, the duration and interest rates. This business loan is an upfront-priced loan therefore you will be aware in advance of the total amount payable including any interest rates, fees or charges.
What determines the rate that I pay?
Business loan interest rates vary due to factors such as the amount that is borrowed, the business assets the money will be used for, the industry the company operates in, the long the company has been in operation, what percentage of the business has sufficient cash flow to fund the loan, and the general health or financial standing of the company.
What are the charges?
There are no hidden costs with our company loans. You’ll know precisely how much it is that you need to pay and when, from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to apply for a loan with no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan in advance?
You can decide to repay all of your loan in full at any time.
If you choose to take this route, please call our helpful business lending specialists. They’ll offer you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the principal balance and the accrued interest up to the time of early payout in addition to 1.5 percent of the remaining principal and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss repayments and to fit in with your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being transparent about the ways we gather data, process, exchange and protect your information, is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We use an advanced banking verification system to immediately verify the bank account details online. This allows us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner borrows from an asset they own to get the funding. The asset could be an individual asset, such as the family home, or an company asset such as a vehicle or piece of equipment.
The vast majority of banks, not just the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then your asset may be transferred to the lender. In essence it is the process of securing new financing by taking advantage of the value of what you already own.
What do I require security to get a business loan?
Up to $150,000 in loans the requirement for asset security is not required in advance to gain access to the funds, however we require a personal guarantee. need a personal guarantee. In the event that you fulfill your loan obligations (as stipulated in your loan contract document) the security of assets is not needed. For loans of over $150,000 generally, you are able to get the option of a personal guarantee and security in the form a charge over assets.