FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Raceview Small Business Loans
Tell me about the Raceview Small Business Loans
Raceview unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an traditional business loan?
It is possible to apply for the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get a same day response and funds may be in your account in 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. Our company loan is a loan that is priced upfront so you will know in advance the total amount to be paid, including the interest, fees and charges. Then, it is broken down into either weekly or daily installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business need, such as managing cash flows, business renovations, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
About Larger Raceview Business Loans
What is the Larger Raceview Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to have been operating for a minimum of 3 years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A large business loan can be used for almost every company reason, such as company remodeling, buying inventory or new equipment, as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It’s as a result of an charge over assets and can include registration with the PPSR or the registration of as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally in nature rather than stating the security of a specific asset. The person signing the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR grants priority over personal property to be assigned depending on the date that a security interest was registered.
The caveat can be described as a formal form of document to offer the public 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 more than $250,000 we can offer a preliminary pre-approval to help simplify the process. We might be able to do this without a credit check, and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial health questions. This is not an offer or guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer you receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You may 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 trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form in just a few minutes, and an experienced business credit specialist will call you to guide you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s License), an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent, 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within one hour if you make your application at standard company hours and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your banking statements , we are able to offer a decision within just 1 business day.
If you are applying for a Larger Business Loan ($100K or more) we may be in a position to offer you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Certain transactions have received approval within less than 24 hours.
The quickest method would be to make sure you apply during normal company hours, and permit us to use the advanced bank verification system link to verify your bank account information online. If you decide to upload the copies of bank statements it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we can often offer a response in one hour – as long as you make your application within normal business times and let us use the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statements we can provide the decision in as little as one business day.
For the Larger Business Loans ($100K and up) we might be likely to provide you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be faster depending on the circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The most efficient method can be ensure you apply during normal business hours, and allow us to use the modern bank verification to confirm your bank details online. If you choose to send us copies of your bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a certain amount we look at a variety of factors to determine how much we can lend you health for your business as well as the amount of repayments your business can afford. The amount you receive from your loan will depend on the specifics for your business.
When you make an application for a set amount, we look at a range of variables to determine your well-being of your business and the level of repayments that your business can support. The total amount of the loan will be determined by the specifics the business.
Fees & repayments
What is the cost for an company loan?
When you request one of our business financing, we will assess the risk assessment that you have for your business and offer you with a customised proposal that includes loan amount, term and interest rates. It is a company loan is an upfront-priced loan which means you be aware in advance of the total amount to be paid, including any charges or interest.
What determines the amount I pay?
The interest rates on business loans rates differ based on various factors like the amount of money that is borrowed, what company assets the funds are used to purchase in addition to the industry that the company is in, how long the business has been operating, in the event that the business has enough cash flow to support the loan, and also the overall well-being or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll be aware of the amount it is that you be required to pay, and at what time, from the first day. There’s not any compounding interest and no additional fees (as as you make your payments on time).
We do not charge an Application Fee. You can get a cash loan no cost upfront or commitment to apply.
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. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay out the loan in advance?
You can choose to repay the total amount of your advance loan at any time.
If you are deciding to pursue this option, please contact our helpful business credit experts. They’ll offer you with the details of your repayment as well as an early payout amount. This is calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payout plus 1.5 percent of the principal balance plus any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align with your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect data, process, exchange and ensure the security of your information is vital and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We employ a highly sophisticated bank verification system that allows you to instantly verify your bank account information online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an business owner makes use of an asset they own to secure the funds for a loan. The asset may be a personal asset like the family home, or an company property like a truck or other piece of machinery.
The majority of lending institutions, including the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan, then your asset may be transferred to the lender. In essence it is means of securing new financing by using the worth of the asset you already own.
Are I need security for a business loan?
For loans of up to $150,000, the requirement for asset security is not required in advance to gain access to the funds, however we do require an individual guarantee. So long as you comply with the loan terms (as stated in your loan contract document) the security of assets is not required. For loans of over $150,000 generally, you are able to get an individual ensure and security is provided in the form of an asset charge.