FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Redcliffe Small Business Loans
Let me know what you think of the Redcliffe Small Business Loans
Redcliffe 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 that are either per day or weekly.
What is this Unsecured Loan different from the traditional business loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and the funds could be on your account within 24 hours. Traditional business loans have an annual rate of interest together with additional fees and charges. The business loan is a pre-paid loan 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 a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost any business purpose including cash flow management, business improvements, advertising to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available for personal purposes.
About larger Redcliffe Business Loans
What is the Larger Redcliffe Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been operating for a minimum of 3 years, and have an annual income of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have 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 Business Loan of a larger size can be used to fund almost every company reason, such as company remodeling, buying equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. It’s in the form of a charge over assets, and may include the registration of this on the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally based rather than stating security over an asset. The person who is signing the ensure is personally liable in the event that the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a security interest was registered.
Caveats are legal document lodged to offer the legal claim on a property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan of more than $250,000 we can offer an initial pre-approval to simplify the process. We could be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering some financial well-being questions. This is not an offer of credit or guarantee of finance. A conditional approval is subject a full credit assessment and any offer you are offered could have different conditions.
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 transactions (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a couple minutes, and an experienced business expert in lending will call you to guide you through the process.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour – as long as you submit your request at standard business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements , we’ll be able to offer an answer within just one business day.
For the Larger Business Loan ($100K and up) we could be capable of offer the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Some agreements have been approved in the space of 24 hours.
The quickest method can be ensure you apply during standard business hours. Also, let us use the advanced bank verification system link to verify your bank account information online. If you choose to upload copies of your bank accounts, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) We can usually provide a response in one hour – as long as you submit your request during normal business times and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your banking statements, we’ll be able to offer a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K or more) we might be capable of offer you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this can be faster depending on the particular circumstances of each application. Some deals have been approved within just 24 hours.
The fastest way would be to make sure you apply during normal business hours. You can also let us use the advance bank verification to instantly confirm your bank details online. If you upload documents from your account accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount, we consider a variety of elements to determine how much we can lend you health of the company and the extent of repayments that your company can afford. The total amount of your loan will depend on the specific circumstances for your company.
If you apply for a specific amount we will consider a number of variables to determine the well-being that is your business as well as the amount of payments your company can support. The total amount of your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How much should you charge for an business loan?
When you request the business credit, we’ll assess the risk profile for your business and provide you with a tailored offer, including the amount of the loan, the duration and interest rates. A company loan is an upfront cost loan therefore you will be aware of the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I will be charged?
Business loan interest rates differ based on various variables like the amount to be that is borrowed, what company assets the funds will be used for as well as the field the business operates in, how long the company has been running and how long the company has sufficient cash flow to support the loan, and also the overall health as well as creditworthiness company.
What are the costs?
There are no hidden costs for our company loans, and you’ll know precisely how much you’ll be required to pay and at what time, from day one. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We do not charge an Application Fee. You can make an application for loans with without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan early?
You can choose to repay the entire amount of the loan early at any time.
If you decide to pursue this option, please speak to our friendly business loan experts. The experts will provide you with repayment details and an early payment figure. It will be calculated using the sum of the principal remaining and the accrued interest up to the time of early payment and 1.5% of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To ensure you do not miss repayments and to fit in your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing how we collect information, use it, and exchange it, as well as secure your information, is vital 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 protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated bank verification system that allows you to instantly confirm your bank account information online. This allows us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner uses the assets they have to obtain the funds for a loan. The asset may be an individual asset, such as the family home, or it could be a business property like a truck or piece of equipment.
The majority of lenders, even the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan, then your assets could be offered for sale by the lender. In essence it’s means of securing new financing using the value of what you already have.
Do I require security for a company loan?
For loans that exceed $150,000, it is not necessary to secure assets upfront to access the money However, we do need the personal guarantee. As long as you follow the loan terms (as stated in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150K, generally, you can get personal ensure and security in the form of a charge over assets.