FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The East Victoria Park Small Business Loans
Tell me more about East Victoria Park Small Business Loans
East Victoria Park unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from a traditional company loan?
It is imaginable to apply to get this Small Business Loan in under 10 minutes online or over the phone, receive a same day response and have the funds available in just 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. This business loan is a cash-based loan which means you be aware of the total amount payable including any interest, fees or charges. This is then broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company purpose including cash flow management, business remodeling, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal purposes.
About Larger East Victoria Park Business Loans
What is the Larger East Victoria Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been trading for at least 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan can be used for nearly any business use, including company remodeling, buying inventory or new equipment or 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 necessary for accessing funds over $150,000. It is usually by taking a charge over assets, which could also include registration with the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature, rather than specifying the security for a particular asset. The person who signs the guarantee is personally liable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be assigned according to the date the security interest has been registered.
An affidavit is an official document filed to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval that will help smooth out the process. We might be able to get this done without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health questions. It is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you may receive may have different conditions.
The application process
Are I eligible for funding?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application in few minutes and an experienced business credit specialist will be in touch to help you.
To apply for up $100,000 you’ll need identification details (valid Driver’s License) and a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, plus interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) We can usually offer a response in one hour if you submit your request within standard company timings and you allow us to utilise the bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statements , we’ll be able to provide an answer within just 1 business day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Certain offers have been approved in 24 hours.
The quickest way to apply is to make sure you apply during normal business hours and allow us to use the advance bank verification link to verify your bank information online. If you upload the copies of bank statements it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we usually provide a response in one hour, provided you make your application at normal business times and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements we can provide a decision in just an business day.
For the Larger Business Loans ($100K and up) we might be able to offer you with a conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved in less than 24 hours.
The fastest method is to ensure you apply during normal business hours. You can also allow us to use the advanced bank verification system to instantly confirm your bank details online. If you decide to upload documents from your account statements, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a specific amount we will consider a number of factors for determining the health that is your company as well as the amount of repayments that your business is able to afford. The amount you receive from the loan will be determined by the specifics of your business.
When you apply for a particular amount, we look at a range of aspects to determine how much we can lend you such as well-being of the business and the level of repayments that your company is able to afford. The amount you receive from your loan will depend on the particular circumstances for your business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for one of our business credit, we’ll assess the risk profile for your company and provide an individualised proposal that includes the loan amount, the terms and the interest rates. A company loan is an upfront cost loan so you will know the exact amount payable including any charges, interest rates or fees.
What determines the amount I am charged?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, what business assets the funds are used to purchase and the sector the company is operating in, how long the business has been in operation as well as what percentage of the business has sufficient cash flow to cover the loan, and overall health and creditworthiness of the company.
What are the costs?
There are no hidden fees with our company loans, and you’ll know exactly how much it is that you be required to pay, and when, right from the day you sign up. There’s no compounding interest, and no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can make an application for loans no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan early?
You can repay the entire amount of your advance loan at any time.
If you decide to take this route, please speak to our friendly business loan specialists. They will offer you with details on repayment as well as an early payout amount. This is calculated as the sum of the principal remaining and the accrued interest up to the date of early payout in addition to 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payment dates and to align with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being upfront about the ways we gather information, use it, and exchange it, as well as secure your information, is of huge importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We use an advanced bank verification system that allows you to instantly verify your bank account details online to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of the assets they have to secure the funds for a loan. The asset may be an individual asset, such as the family home, or it could be a company property like a truck or piece of equipment.
The majority of lenders, 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 offered for sale by the lender. In essence it is the process of securing new funding using the value of what you already own.
Should I need security to secure an company loan?
For loans up to $150,000 it is not necessary to secure assets before you are able to access the money but we require a personal guarantee. require a personal guarantee. If you adhere to your loan obligations (as stated in your loan contract document), asset security will never be required. For loans that exceed $150,000, generally, there is the option of a personal guarantee and security is provided in the form of the charge of assets.