FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Eschol Park Small Business Loans
Let me know about the Eschol Park Small Business Loans
Eschol Park unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
It is possible to apply to this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an instant response and have the funds in your account within 24 hours. Traditional company loans reference an annual rate of interest along with other charges and fees. The company loan is a pre-paid loan therefore you’ll know ahead of time the total amount to be paid, including any fees, interest or charges. Then, it is divided into weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company reason, such as control of cash flow company renovations, marketing to purchase inventory, new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
About the Larger Eschol Park Business Loans
What is the Larger Eschol Park Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been trading for at least 3 years, and have an annual income of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funding for?
A large company loan can be used for nearly all company need, including company renovations, to purchase new equipment or inventory, as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This is in the form of a charge over assets, which could also include registration on the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature, rather than stipulating the security for a particular asset. The person signing the guarantee is personally responsible if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR allows preference over private property assigned according to the date a registration of a security interest.
A caveat is a legal document that is filed to offer notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan of $250K or more we can offer an initial pre-approval in order to make the process. It is possible to make this decision without credit checks and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial well-being questions. It’s not an offer of credit or guarantee of financing. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be subject to different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a few minutes and a dedicated business credit specialist will contact you to guide you.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $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 of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) We can usually offer a response in one hour, provided you apply within quality business times and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements , we’ll be able to provide an answer in just one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be able to provide the conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The most effective method can be make sure you apply during normal company hours and permit us to use the advance bank verification to verify your bank information online. If you decide to upload duplicates of your banking statements it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we can often provide a response in one hour – as long as you submit your request within normal business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statement, we’ll provide a decision in as little as the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we might be capable of provide you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the circumstances of each application. Some transactions have received approval in 24 hours.
The fastest way would be to make sure you apply during normal business hours, and allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you decide to send us the copies of bank statements, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount we take into consideration a range of factors to determine what is the health that is your company and the level of payments your company can afford. The total amount of the loan will be determined by the particular circumstances for your company.
If you apply for a particular amount, we look at a range of elements to determine your health for your business and the level of repayments your company will be able to support. The total amount of your loan will depend on the specific circumstances that are unique to your company.
Fees & repayments
What is the cost for an company loan?
When you make an application for our business financing, we will assess the risk profile the business and provide you with a tailored offer including loan amount, term and interest rates. A business loan is an upfront-priced loan so you will be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I will be charged?
Interest rates for company loans rates depend on a variety of factors including the amount borrowed, what company assets the funds will be used for as well as the field the company operates in, how long the business has been operating and what percentage of the company has sufficient cash flow to fund the loan, and the general health and creditworthiness of the company.
What are the costs?
There are no hidden costs with our company loans. You’ll know precisely what you need to pay and at what time, from the first day. There’s not any compounding interest and no additional fees (as as you make your payments on time).
We do not charge an application fee. You can apply for a loan with with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay off the loan earlier?
You can choose to repay all of your loan early at any time.
If you are deciding to do this please talk to one of our helpful company loans specialists. We will offer you with the details of your repayment as well as an early payout amount. The figure will be calculated as the sum of the remaining principal amount and any accrued interest at the time of the early payout and 1.5% of the remaining principal and any outstanding fees.
How do repayments work?
To make sure you do not miss payments and to work your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being clear about the ways we gather the information we collect, use, share and ensure the security of your information is vital and is an essential aspect of our relationship with 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 financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We make use of an advanced bank verification system to instantly verify the bank account details online, allowing us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner makes use of the assets they have to make a loan. The asset could be a personal asset like the family home or a company property like a truck or piece of equipment.
The vast majority of lending institutions, not just the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan then the asset could be offered for sale by the lender. In essence it is a way of securing new financing by making use of the value of what you already own.
Should I require security to get an business loan?
For loans of up to $150,000, it is not necessary to secure assets in advance to gain access to the funds However, we require a personal guarantee. require the personal guarantee. So long as you comply with your loan obligations (as stipulated in your loan contract) Asset security is not needed. For loans of over $150K typically, you will need an individual guarantee and security in the form of charges on assets.