FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Eastern Beach Small Business Loans
Tell me what you think of the Eastern Beach Small Business Loans
Eastern Beach unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
Apply for your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the funds could be in your account in 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. We offer a business loan is a cash-based loan and you’ll know in advance the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost any company reason, such as cash flow management, business remodeling, marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal purposes.
Concerning Larger Eastern Beach Business Loans
What is the Larger Eastern Beach Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been operating for at least three years and generate an annual revenue of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be utilised?
A larger company loan can be used for nearly all business purpose including company renovations, purchase of new equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This is by taking a charge against assets and can be registered through the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to repay credit that is general in nature, rather than stating the security of a specific asset. The person signing the guarantee 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 that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
Caveats are legal document filed to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help ease the process. It is possible to apply for this without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial health questions. It’s neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you receive could be on different conditions.
The application process
Are I eligible for funding?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for for the unsecured loan $5K – $100K) or three years of trade (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 in few minutes and a dedicated business credit specialist will call you to assist you.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim current financial year financials as well as Aged Payables and Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within one hour if you make your application at quality company times and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements , we’ll be able to offer the decision in just an business day.
For Larger Business Loans ($100K to $500K) we may be able to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Certain deals have been approved within 24 hours.
The quickest method can be make sure you apply during standard business hours. You can also permit us to use the advance bank verification to instantly check your bank’s information online. If you decide to upload copies of your bank accounts, it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we typically provide an answer within one hour, provided you make your application in standard business timings and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements, we will be able to offer a decision within 1 business day.
For the Larger Business Loans ($100K to $500K) we might be in a position to provide the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some deals have been approved within 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. You can also permit us to use the sophisticated bank verification link to instantly verify your bank account information online. If you choose to upload copies of your bank statements it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we consider a variety of aspects that determine what is the well-being of your company and the extent of repayments that your business can afford. The amount you receive from the loan will be determined by the specifics the company.
When you submit an application for a certain amount, we take into consideration a variety of aspects to assess your well-being of the business and the level of the repayments your business can support. The total amount of your loan will be contingent on the particular circumstances that are unique to your company.
Fees & repayments
How much should you charge for an business loan?
If you decide to make an application for our company loans, we will assess the risk assessment the business and provide an individualised offer including the loan amount, the terms and the interest rates. The business loan is an upfront cost loan and you’ll know the exact amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I pay?
The interest rates on business loans rates vary due to factors like the amount of money that is borrowed, what company assets the money are used to purchase and the sector the company is operating in, how long the company has been in operation for, whether the business has sufficient cash flow to support the loan, as well as the overall health as well as creditworthiness business.
What are the costs?
There aren’t any hidden costs for our company loans, and you’ll know precisely what you’ll be required to pay and when, starting from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to make an application for loans absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan early?
You can repay all of your advance loan at any time.
If you do decide to do this please contact our helpful business credit professionals. We will offer you with repayment details along with an early payout estimate. It will be calculated using the sum of the principal amount remaining and the accrued interest up to the time of the early payout in addition to 1.5 percent of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To make sure that you don’t miss payment dates and to align your cash flow schedule, we provide repayments either daily or weekly. They will be automatically deducted from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear how we collect, use, exchange and safeguard your data, is of paramount importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We use an advanced bank verification system link to immediately verify your bank account information online so we can provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a company owner uses an asset they own to get the funds for a loan. The asset can be either a personal asset like the family home, or an business asset like a truck or piece of equipment.
The vast majority of the lenders even the banks with the biggest size, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, then the asset might be transferred to the lender. In essence it’s the process of securing additional financing taking advantage of the value of what you already own.
Should I need security to secure an company loan?
For loans of up to $150,000, there is no requirement for asset security prior to the loan’s access However, we require a personal guarantee. need an individual guarantee. In the event that you fulfill the loan terms (as stated in your loan contract) Asset security will never be required. For loans over $150K generally, there is a personal guarantee and security is provided in the form of an asset charge.