FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Eagleby Small Business Loans
Let me know more about Eagleby Small Business Loans
Eagleby unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and have the funds in your account in 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. Our business loan is an upfront priced loan and you’ll be aware of the total amount payable including any fees, charges or charges. This is then broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company reason, such as control of cash flow business improvements, advertising to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal reasons.
Concerning Larger Eagleby Business Loans
What is the Larger Eagleby Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to be trading for at least 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be used for?
A larger business loan can be used for almost all business need, including company renovations, purchase of inventory or new equipment or as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It is usually by taking a charge over assets and can be registered on the PPSR or filing a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally based rather than stating security over an asset. The person who is signing the ensure is personally liable in the event that the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned in accordance with the date on which a 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 without Credit Check?
If you’re applying for an enterprise loan of $250K or more it is possible to offer an initial pre-approval to ease the process. It is possible to do this without a credit check and within six hours of your initial application. This pre-approval is based on an initial assessment that includes you answering a few financial health questions. It is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer you may receive may be on different terms.
Application process
Are I eligible for funding?
You are eligible to apply for an company 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 of trading (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a few minutes and a dedicated company lending specialist will contact you to guide you through the process.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent and 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, and interim current financial year financials, Aged Payables and Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer in just one hour, provided you submit your request within standard business times and let us use the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we’ll be able to provide a decision in just one company day.
For Larger Business Loans ($100K and up) we may be likely to offer you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain offers have been approved within less than 24 hours.
The quickest method can be make sure you apply during normal company hours and allow us to use our advance bank verification to verify your bank information online. If you opt to send us the copies of bank accounts, it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically offer a response in one hour – as long as you apply in standard business hours and allow us to use the bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statement, we’ll provide the decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to provide the conditional pre-approval within about 6 hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some transactions have received approval within just 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. You can also allow us to use the advanced bank verification system to instantly check your bank’s information online. If you opt to send us documents from your account statement, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we consider a variety of aspects in order to assess the well-being for your business and the extent of repayments that your company will be able to support. The amount you receive from your loan will depend on the particular circumstances that are unique to your company.
If you apply for a specific amount we will consider a number of elements to determine your well-being of your business and the level of repayments your business can support. The total amount of your loan will be determined by the specific circumstances the business.
Fees & repayments
How do you charge for an company loan?
If you decide to make an application for the company loan, we will assess the risk profile the company and offer an individualised offer including the loan amount, the terms and interest rates. The business loan is an upfront priced loan so you will be aware of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I pay?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, the company assets the money are used to purchase, the industry the business is in, how long the company has been in operation as well as in the event that the company has sufficient cash flow to cover the loan, and the general well-being as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges with our business loans. You’ll know precisely what you’ll be required to pay, and when, right from the first day. There’s no compounding interest and no additional fees (as long as you make your payments on time).
We do not charge an application fee. You can make an application for loans with with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of the advance loan at any time.
If you decide to take this route, please call our helpful company lending professionals. They’ll offer you with details on repayment and an early payment figure. The figure will be calculated as the total of the principal amount remaining and any accrued interest at the time of the early payout in addition to 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To ensure you do not miss payments and to work your cash flow cycle we provide repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about the ways we gather, use, exchange and secure your information, is of huge importance and is a crucial element 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 as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We make use of an advanced banking verification system to immediately verify your bank account details online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an business owner utilises an asset that they own to secure a loan. The asset could be a personal asset like the family home or it could be a business property like a truck or piece of equipment.
The vast majority of the lenders even the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan then the asset might be taken over by the lender. In essence it’s an opportunity to secure additional financing using the value of what you already have.
What do I require security to get a company loan?
For loans that exceed $150K, there is no requirement for asset security in advance to gain access to the funds, however we do require an individual guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract document) Asset security will never be needed. For loans of over $150,000 typically, you will need an individual ensure and security that is in the form a charge over assets.