FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Hillcrest Small Business Loans
Let me know more about Hillcrest Small Business Loans
Hillcrest unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from a traditional company loan?
You can apply for this Small Business Loan in under 10 minutes over the phone, receive a same day response and the funds could be on your account within 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. This company loan is a pre-paid loan so you will know ahead of time the total amount to be paid, including the interest, fees and charges. This is then broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company purpose including control of cash flow company remodeling, marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Hillcrest Business Loans
What is the Larger Hillcrest Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to be operating for at least three years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (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 is a great option for almost all company purpose including business improvements, purchasing new equipment or inventory or as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This can be done in the form of a charge over assets and can be registered through the PPSR or the registration of as a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature, rather than specifying security over a particular asset. The person who signs the ensure is personally liable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR allows preference over private property granted according to the date a security interest has been registered.
The caveat can be described as a formal document that is filed to provide an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan that exceeds $250K we can offer an initial pre-approval in order to simplify the process. It is possible to get this done without credit checks 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 checks. It’s neither an offer nor a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer that you receive could be subject to different conditions.
The application process
Do I qualify for funds?
You may apply for a 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)
- you must prove at least 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and a dedicated business credit specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent, 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) We can usually provide an answer within one hour, provided you apply at quality business hours and permit us to utilise the bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statements , we are able to offer a decision within one company day.
For Larger Business Loans ($100K to $500K) we might be in a position to offer you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved within just 24 hours.
The most effective method would be to ensure you apply during standard company hours. Also, allow us to use the advance bank verification to instantly verify your bank information online. If you decide to send us copies of your bank statement, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within an hour – as long as you make your application within standard business times and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statements, we’ll be able to provide a decision within one business day.
If you are applying for Larger Business Loans ($100K and up) we might be likely to provide you with pre-approval conditional to your application within about 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 upon the circumstances for each application. Some transactions have received approval within just 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours. You can also permit us to use the advanced bank verification system link to instantly confirm your bank details online. If you send us copies of your bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of variables for determining the health that is your company and the level of the repayments your company will be able to support. The amount you receive from your loan will depend on the specific circumstances the business.
When you make an application for a certain amount, we take into consideration a variety of variables to determine how much we can lend you such as well-being for your company and the extent of payments your company will be able to support. The amount you receive from the loan will be determined by the specific circumstances the business.
Fees & repayments
What is the cost for an business loan?
If you decide to make an application for one of our business loans, we’ll assess the risk profile of your company and provide an individualised proposal that includes loan amount, term and interest rates. A business loan is an upfront cost loan therefore you will be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I’m charged?
Business loan interest rates depend on a variety of factors like the amount of money borrowed, the business assets the funds are used to purchase and the sector the company operates in, the long the business has been running and how long the company has enough cash flow to cover the loan, and also the overall health or financial standing of the company.
What are the costs?
There aren’t any hidden charges for our business loans. You’ll know precisely what you be required to pay and when, 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 punctually).
We don’t charge an application fee. You are able to get a cash loan with with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan early?
You can repay the total amount of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful company loans specialists. The specialists will offer you with details for repayment as well as an early payout amount. The figure will be calculated as the sum of the principal remaining and accrued interest to the date of early payout plus 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and secure your information, is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We employ an exceptionally sophisticated bank verification system to instantly confirm your bank account information online so we can offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner makes use of an asset that they own to make the funding. The asset can be an asset belonging to the personal, like the family home or an business property like a truck as well as a piece of machine.
The majority of the lenders including the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan, the asset could be sold by the lender. In essence, it’s the process of securing new funding taking advantage of the value of what you already own.
Are I need security for an business loan?
Up to $150K in loans no asset security is required in advance to gain access to the funds however, we require a personal guarantee. require a personal guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract) Asset security will never be required. For loans over $150K generally, you can get the option of a personal guarantee and security in the form of a charge over assets.