FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Rooty Hill Small Business Loans
Let me know how you can avail the Rooty Hill Small Business Loans
Rooty Hill unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from the traditional business loan?
Apply to the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and the funds could be in your account in 24 hours. Traditional business loans reference an annual interest rate plus other fees and charges. The business loan is a pre-paid loan and you’ll know ahead of time the total amount to be paid, including any fees, charges or charges. Then, it is broken down into weekly or daily payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company purpose including cash flow management, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
About larger Rooty Hill Business Loans
What is the Larger Rooty Hill Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined 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 business needs to have been operating for at least three years, and have an annual income of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can the funds be used for?
A larger company loan can be used for almost every company need, including business renovations, to purchase new equipment or inventory, as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. This can be done by way of charge over assets, and may include registering this with the PPSR or making a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is generally based rather than specifying the security for a particular asset. The person signing the ensure is personally responsible if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR gives priority over personal property to be granted according to the date a security interest has been registered.
The caveat can be described as a formal document lodged to provide notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan that exceeds $250,000 it is possible to offer an initial pre-approval that will help smooth out the process. We could be able to apply for this without a credit verification and within six hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial health questions. It’s neither an offer nor a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer you are offered could be subject to different conditions.
The application process
Do I qualify for funds?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form within a couple minutes, and an experienced business expert in lending will be in touch to help you.
To be eligible for up to $100,000 you’ll require the right identification documents (valid Driver’s License), an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Information on the application including credit consent and 12 months of bank records, IRD statement and the last two years’ finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within an hour – as long as you submit your request during 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 decide to send us copies of your bank statements , we will 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 might be in a position to offer you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval in the space of 24 hours.
The most efficient method would be to ensure you apply during standard company hours, and allow us to use the modern bank verification link to verify your bank account information online. If you upload copies of your bank statements it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within one hour if you make your application in standard business hours and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statement, we’ll provide an answer within an business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be able to offer you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Certain transactions have received approval in the space of 24 hours.
The fastest way can be make sure you apply during normal business hours and allow us to use the advance bank verification to confirm your bank details online. If you decide to upload copies of your bank statements it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of elements to determine the health for your business as well as the amount of payments your company can support. The total amount of the loan will be determined by the specific circumstances of your business.
When you submit an application for a specific amount we consider a variety of aspects to assess your well-being that is your business and the amount of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the particulars the company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for our company credit, we’ll assess the risk profile of your business and provide you with a customised offer that includes the amount of loan, the term and interest rates. A business loan is an upfront cost loan which means you be aware in advance of the total amount you will have to pay, including charges or interest.
What determines the rate that I will be charged?
Interest rates for company loans rates depend on several factors like the amount of money borrowed, the business assets the funds are used to purchase in addition to the industry that the company operates in, how long the business has been in operation, in the event that the company has enough cash flow to cover the loan, and the general health or creditworthiness of the company.
What are the costs?
There are no hidden fees with our company loans, and you’ll know precisely what you’ll be required to pay, and when, 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 punctually).
We do not charge an Application Fee. You can get a cash loan without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan in advance?
You can choose to repay the entire amount of the loan at any point in time.
If you decide to take this route, please speak to our friendly company lending experts. The specialists will provide you with details for repayment as well as an early payout amount. This is calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payout in addition to 1.5 percent of the remaining principal plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work with your cash flow routine, we offer repayments either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about how we collect, use, exchange and protect your information, is of paramount importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We use an advanced bank verification system that allows you to immediately verify your bank account details online. This allows us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner makes use of an asset that they own to secure the loan. The asset may be a personal asset like the family home or it could be a company asset such as a truck or piece or equipment.
The majority of the lenders not just the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan, then your asset may be taken over by the lender. In essence it is an opportunity to secure new funding using the value of what you already have.
Do I require security to secure an business loan?
For loans of up to $150,000, no asset security is required in advance to gain access to the funds but we require a personal guarantee. require the personal guarantee. If you adhere to your loan obligations (as detailed in your loan contract) the security of assets is not needed. For loans of over $150K generally, you are able to get the option of a personal guarantee and security in the form of an asset charge.