FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Eight Mile Plains Small Business Loans
Let me know more about Eight Mile Plains Small Business Loans
Eight Mile Plains unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from a traditional business loan?
You can apply to this Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and have the funds available in just 24 hours. Traditional company loans have an annual interest rate plus other fees and charges. This company loan is a loan that is priced upfront therefore you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost any company use, including control of cash flow business improvements, advertising to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal purposes.
Concerning Larger Eight Mile Plains Business Loans
What is the Larger Eight Mile Plains Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, 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 be trading for at least 3 years, and have an annual income of at least $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 to demonstrate at least 12 months of trading.
What can I use the funding for?
A large company loan can be used for almost all business purpose including business renovations, purchase of inventory or new equipment or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. This is by taking a charge over assets, which could also include the registration of this through the PPSR or making as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally based rather than specifying security over a particular asset. The person signing the guarantee is personally responsible if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR gives priority over personal property to be granted according to the date the registration of a security interest.
The caveat can be described as a formal document lodged to provide an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan of more than $250K, we may offer an initial pre-approval to smooth out the process. We may be able to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health checks. This is neither an offer nor a guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer that you receive could be based on different conditions.
Application process
Do I qualify for funds?
You can apply 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)
- must show at least six months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Just complete the online application within a couple minutes, and a dedicated company loan specialist will contact you to assist you.
For a loan of up to $100,000 you’ll require proof of identity (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: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent twelve months bank statement, an IRD statements as well as the two most recent years’ financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we typically provide a response in one hour, provided you apply at quality company hours and permit us to utilise the bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements , we are able to provide a decision within one business day.
For Larger Business Loans ($100K to $500K) we might be in a position to offer the conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The most effective method can be ensure you apply during standard company hours and allow us to use the modern bank verification link to instantly check your bank’s information online. If you decide to upload documents from your account accounts, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within one hour – as long as you apply during standard business times and permit us to use the bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we will be able to offer the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be likely to offer you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain offers have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours, and allow us to use the advanced bank verification system link to confirm your bank details online. If you opt to send us duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of elements to determine the well-being of your company as well as the amount of payments your business is able to afford. The total amount of your loan will depend on the specifics for your business.
When you apply for a specific amount we look at a range of factors to determine the well-being for your company and the level of the repayments your company will be able to support. The total amount of your loan will be determined by the particulars the company.
Fees & repayments
What is the cost for an business loan?
When you request our company financing, we’ll assess the risk profile of your business and offer you with a tailored offer including loan amount, term and the interest rates. The business loan is an upfront cost loan and you’ll be aware of the total amount payable including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
The interest rates on company loans rates depend on several factors including the amount borrowed, what company assets the funds are used to purchase in addition to the industry that the company is in, how long the business has been in operation for, whether the business has enough cash flow to cover the loan, as well as the general health and creditworthiness of the company.
What are the cost?
There aren’t any hidden charges with our company loans. You’ll be aware of the amount you’ll need to pay and when, from the first day. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments in time).
We do not charge an application fee. You are able to get a cash 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. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You may choose to pay back all of your advance loan at any time.
If you do decide to do this please contact our helpful business credit specialists. We will provide you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal remaining and the accrued interest up to the time of the early payout and 1.5 percent of the remaining principal and any fees that remain unpaid.
How do repayments work?
To ensure that you don’t miss payment dates and to align your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about the ways we gather, use, exchange and protect your information, is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We use an advanced bank verification system that allows you to immediately verify the bank account details online. This allows us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the business owner utilises an asset they own to get the funding. The asset can be a personal asset like the family home, or a company property like a truck or piece of equipment.
The majority of lending institutions, not just the major banks, prefer to secure loans against an asset. If you’re having trouble paying back the loan, the asset might be sold by the lender. In essence it is a way of securing new financing using the value of what you already have.
What do I require security to secure an business loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds however, we do need an individual guarantee. As long as you follow the loan terms (as stated in the loan contract), asset security will never be required. For loans that exceed $150K, generally, you are able to get an individual guarantee and security in the form charges on assets.