FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Richmond Lowlands Small Business Loans
Let me know how you are able to avail the Richmond Lowlands Small Business Loans
Richmond Lowlands unsecured loans offers amounts of 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 how is the Unsecured Loan different from a traditional company loan?
Apply for your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and the money could be on your account within 24 hours. Traditional company loans have an interest rate per annum as well as other fees and charges. We offer a business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount to be paid, including any interest, fees or charges. This is then divided into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business reason, such as cash flow management, company renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About Larger Richmond Lowlands Business Loans
What is the Larger Richmond Lowlands Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the company needs to have been operating for a minimum of 3 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 business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can the funding be used for?
A larger business loan can be used to fund almost any business purpose including business remodeling, buying new equipment or inventory, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It is usually as a result of an charge against assets and can include registration in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is general in nature rather than specifying security over an asset. The person who is 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 register operated by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR permits the priority of personal property assigned according to the date the security interest has been registered.
Caveats are legal form of document to offer the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan of more than $250K, we may offer a preliminary pre-approval to help make the process. We might be able to do this without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering some financial health questions. This is not an offer of credit or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer you receive could have different terms.
The application process
Can I be eligible for funding?
You may be eligible 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 business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a couple minutes, and an experienced business expert in lending will call you to help you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details for application including credit consent twelve months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we typically offer a response in one hour, provided you apply within quality business time and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll offer the decision within 1 business day.
For Larger Business Loans ($100K to $500K) we could be in a position to provide you with a conditional pre-approval in about 6 hours. After you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be quicker based on the circumstances of each application. Certain offers have been approved within just 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours. You can also allow us to use our advance bank verification link to instantly check your bank’s information online. If you opt to upload copies of your bank statements , it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within an hour, provided you make your application at standard business time and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statement, we’ll offer an answer in just one business day.
For the Larger Business Loans ($100K up to $500,000) we might be able to offer you with a conditional pre-approval within about six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The quickest method is to ensure you apply during normal business hours. Also, let us use the advanced bank verification system link to confirm your bank details online. If you choose to send us duplicates of your banking statement, it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount, we look at a variety of aspects that determine what is the well-being that is your business as well as the amount of the repayments your business can afford. The amount you receive from your loan will depend on the specific circumstances for your company.
When you submit an application for a specific amount we take into consideration a variety of factors to assess the health of the company as well as the amount of payments your business can support. The total amount of your loan will depend on the particulars of your company.
Fees & repayments
How much do you charge for an company loan?
If you decide to apply for our business loans, we’ll assess the risk profile for your business and offer an individualised offer that includes the amount of the loan, the duration and interest rates. It is a company loan is a loan that is priced upfront therefore you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Interest rates for business loans rates differ based on various variables like the amount to be of money borrowed, the business assets the funds will be used for and the sector the business is in, how long the company has been in operation and in the event that the company has sufficient cash flow to fund the loan, and the overall health and creditworthiness of the business.
What are the charges?
There aren’t any hidden costs with our business loans. You’ll know precisely how much you’ll be required to pay and at what time, from the day you sign up. There’s not any compounding interest and no additional fees (as long as you make your payments punctually).
We don’t charge an Application Fee. You can apply for a loan with with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan early?
You can repay the total amount of your advance loan at any time.
If you are deciding to take this route, please talk to one of our helpful business loan specialists. They’ll provide you with details on repayment and an early payout figure. This is calculated as the sum of the principal amount remaining and accrued interest to the date of early payout, plus 1.5 percent of the principal balance plus any outstanding fees.
How do repayments work?
To ensure that you don’t miss repayments and to fit in your cash flow schedule, we provide payments that are either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about how we collect, use, exchange and safeguard your data, is crucial and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We use an advanced bank verification system that allows you to instantly confirm your bank account information online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a company owner borrows from an asset they own to secure the funds for a loan. The asset could be an individual asset, such as the family home or an business asset such as a vehicle as well as a piece of machine.
The vast majority of lending institutions, even the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, then the asset might be transferred to the lender. In essence it’s a way of securing additional financing making use of the value of what you already own.
Do I require security to secure an business loan?
Up to $150K in loans the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need an individual guarantee. If you adhere to your loan obligations (as specified in your loan contract document) the security of assets will never be required. If you take out loans in excess of $150,000 generally there is an individual guarantee and security in the form of the charge of assets.