FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Hillcrest Small Business Loans
Let me know about the Hillcrest Small Business Loans
Hillcrest unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
It is possible to apply to your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and the funds could be in your account in 24 hours. Traditional company loans are based on an interest rate per annum as well as other fees and charges. This company loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount to be paid, including any interest, fees or charges. Then, it is broken down into either weekly or daily payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal reasons.
About larger Hillcrest Business Loans
What is the Larger Hillcrest Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been operating for at least three years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A Larger Business Loan is a great option for almost any company purpose including business improvements, purchasing equipment or inventory, as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. It is usually by taking a charge on assets, and could be registered on the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature, rather than specifying security over a particular asset. The person who is signing the guarantee is personally liable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central 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 gives preference over private property assigned according to the date the security interest was registered.
The caveat can be described as a formal form of document to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of $250K or more we can offer an initial pre-approval in order to smooth out the process. We could 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 evaluation that involves you answering some financial well-being checks. It is neither an offer nor a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you are offered could be on different conditions.
Application process
Can I be eligible for funding?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (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 fast and easy. Just complete the online application in few minutes and an experienced company loan specialist will contact you to guide you through the process.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $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: Application details including credit consent and 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we can often provide an answer within an hour – as long as you submit your request at standard company timings and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements , we will be able to provide the decision within the span of one company day.
For Larger Business Loans ($100K or more) we might be capable of offer you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Certain deals have been approved in less than 24 hours.
The most effective method would be to ensure you apply during normal company hours. Also, permit us to use the advanced bank verification system to verify your bank information online. If you decide to upload copies of your bank statements , it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer a response in one hour, provided you submit your request within standard business hours and permit us to use the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements, we are able to provide the decision within an business day.
For Larger Business Loans ($100K up to $500,000) we might be able to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain transactions have received approval within 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours, and let us use the sophisticated bank verification to instantly verify your bank account information online. If you opt to send us duplicates of your banking statements it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a certain amount we will consider a number of elements in order to assess the health that is your company and the amount of repayments that your company can afford. The amount you receive from the loan will be determined by the particular circumstances of your company.
When you apply for a specific amount we will consider a number of variables to determine the health of the business and the amount of payments your business can afford. The amount you receive from your loan will be contingent on the particular circumstances for your business.
Fees & repayments
What is the cost for a company loan?
When you apply for business loans with us business financing, we will assess the risk profile of your business and offer an individualised offer, including the loan amount, the terms and the interest rates. A company loan is a loan that is priced upfront and you’ll know the exact amount you will have to pay, including charges or interest.
What determines the rate that I will be charged?
Business loan interest rates depend on several 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 and whether the company has enough cash flow to fund the loan, and also the overall health as well as creditworthiness company.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll be aware of the amount you’ll be required to pay and when, right from the very first day. There’s no compounding interest and no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You can get a cash loan with without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan earlier?
You can repay all of your loan in full at any time.
If you do decide to take this route, please talk to one of our helpful business lending professionals. The experts will offer you with repayment details as well as an early payout amount. This is calculated as the total of the principal remaining and the accrued interest up to the date of early payout plus 1.5 percent of the principal remaining as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and being transparent about the ways we gather data, process, exchange and safeguard your data, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We make use of an advanced bank verification system to instantly confirm your bank account information online to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner utilises an asset they own to secure a loan. The asset may be an individual property, such as the family home, or an company asset such as a vehicle or other piece of machinery.
The majority of lending institutions, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset might be taken over by the lender. In essence, it’s the process of securing new funding using the worth of the asset you already have.
Are I need security to get a company loan?
Up to $150K in loans no asset security is required upfront to access the money but we require a personal guarantee. require an individual guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract document) Asset security will never be required. For loans of over $150K typically, you will need the option of a personal guarantee and security in the form of an asset charge.