FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Eagle Farm Small Business Loans
Let me know more about Eagle Farm Small Business Loans
Eagle Farm unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from the traditional business loan?
You can apply for the Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and have the funds in your account in 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. Our company loan is a loan that is priced upfront which means you be aware of the total amount payable including any fees, charges or charges. Then, it is divided into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business reason, such as managing cash flows, business remodeling, marketing to purchase inventory, new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
Concerning Larger Eagle Farm Business Loans
What is the Larger Eagle Farm Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount the company needs to be trading for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can the funds be used for?
A Larger Business Loan is a great option for almost every business purpose including business renovations, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. It’s as a result of an charge over assets, and could include registration in the PPSR or filing as a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature rather than stating the security for a particular asset. The person signing the guarantee is personally accountable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
A caveat is a legal document lodged to offer the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan of more than $250,000 it’s possible to offer an initial pre-approval to ease the process. We may be able to get this done without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial health checks. It’s not an offer or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you may receive may be subject to different conditions.
Application process
Can I be eligible for funding?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (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 easy. Simply complete the online form in just a few minutes, and an experienced company expert in lending will be in touch to guide you through the process.
To apply for up to $100,000, you’ll require ID details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within an hour if you submit your request within quality company hours and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements , we are able to offer an answer within an business day.
For the Larger Business Loan ($100K and up) we could be capable of offer you with a conditional pre-approval within about six hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some transactions have received approval within less than 24 hours.
The quickest method for you to apply is ensure you apply during standard company hours and permit us to use the modern bank verification link to instantly confirm your bank details online. If you send us documents from your account statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we usually provide a response in one hour – provided you apply in normal business times and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your bank statements, we’ll be able to offer a decision in as little as the span of one business day.
For Larger Business Loans ($100K up to $500,000) we may be capable of offer you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Some offers have been approved in just 24 hours.
The fastest way can be make sure you apply during normal business hours. You can also permit us to use the modern bank verification link to check your bank’s information online. If you decide to upload copies of your bank statements, it will take a little longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we take into consideration a range of variables for determining your health for your company as well as the amount of repayments that your business can support. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
When you submit an application for a certain amount, we consider a variety of factors to determine your well-being of the business and the extent of payments your company can support. The amount you receive from your loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for one of our business financing, we’ll assess the risk assessment the business and provide you with a customised offer, including the amount of loan, the term and the interest rates. This business loan is a loan that is priced upfront which means you be aware of the total amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I am charged?
The interest rates on business loans rates depend on a variety of factors like the amount of money of money borrowed, the business assets the money will be used for as well as the field the company is operating in, how long the business is in operation as well as whether the company has sufficient cash flow to cover the loan, and the overall well-being or creditworthiness of the company.
What are the charges?
There are no hidden fees with our business loans, and you’ll know exactly how much it is that you be required to pay, and when, from the first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an application fee. You can get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan earlier?
You can decide to repay the total amount of your loan early at any time.
If you decide to take this route, please contact our helpful business credit specialists. The specialists will offer you with details for repayment along with an early payout estimate. This will be calculated as the sum of the principal amount remaining plus any accrued interest as of the date of early payout plus 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
To make sure you do not miss payments and to work with your cash flow standard, we offer repayments that are either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect data, process, exchange and secure your information, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their privacy. We make use of an advanced bank verification system link to immediately verify your bank account details online, allowing us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner borrows from assets they own to secure the loan. The asset can be an individual property, such as the family home or an business asset like a truck or other piece of machinery.
The vast majority of lenders, not just the major banks, prefer to secure loans against an asset. If you’re struggling to pay back the loan, then your asset may be taken over by the lender. In essence, it’s a way of securing additional financing making use of the value of what you already own.
What do I require security to get an business loan?
Up to $150K in loans no asset security is required prior to the loan’s access However, we do need the personal guarantee. As long as you follow your loan commitments (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150,000 generally, there is a personal guarantee and security is provided in the form of a charge over assets.