FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Redland Bay Small Business Loans
Tell me what you think of the Redland Bay Small Business Loans
Redland Bay unsecured loans offers the range of $5,000 to $100,000. Terms range 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 an traditional company loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and funds may be in your account within 24 hours. Traditional business loans are based on an annual rate of interest plus other fees and charges. This business loan is a pre-paid loan therefore you’ll know ahead of time the total amount to be paid, including the interest, fees and charges. Then, it is broken down into either a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company use, including cash flow management, business remodeling, marketing to purchase inventory, new equipment, to fund general working capital and much more. The loan is not available to fund personal expenses.
Concerning Larger Redland Bay Business Loans
What is the Larger Redland Bay Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to have been operating for at least three years with an annual turnover of $700K. Your company must belong to 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 of proving at minimum 12 months of continuous trading.
How can the funds be used for?
A large company loan can be used for almost all business use, including company renovations, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It’s in the form of a charge on assets, and may include registration on the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to repay a loan which is generally based rather than defining the security for a particular asset. The person who is signing the ensure is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR permits preference over private property granted depending on the date that a security interest that is registered.
The caveat can be described as a formal form of document to provide notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger business loans that exceeds $250,000, we may offer an initial pre-approval to ease the process. We might be able to get this done without credit checks and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering a few financial well-being questions. This is neither an offer nor a guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be on different terms.
The application process
Can I be eligible for funding?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application within a few minutes and an experienced business loan specialist will be in touch to help you.
To apply for up $100,000 you’ll require ID details (valid Driver’s License) as well as a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also 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 – $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically offer an answer within one hour – as long as you submit your request at standard business times and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statement, we’ll offer an answer in as little as 1 business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely 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 could be shorter based upon the circumstances for each application. Some transactions have received approval in less than 24 hours.
The fastest way would be to ensure you apply during standard company hours, and let us use the advance bank verification to verify your bank account information online. If you decide to upload duplicates of your banking statements , it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer in just one hour, provided you apply at standard business time and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statement, we’ll provide a decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we might be able to offer you with a conditional pre-approval within about six hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved within 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours, and allow us to use our sophisticated bank verification to verify your bank account information online. If you decide to send us copies of your bank statements, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a certain amount, we consider a variety of aspects in order to assess the well-being of the business and the amount of payments your company can support. The total amount of your loan will depend on the specifics of your business.
If you apply for a specific amount we will consider a number of elements to determine your well-being for your business as well as the amount of the repayments your company can support. The total amount of your loan will depend on the specific circumstances the business.
Fees & repayments
What is the cost for the cost of a business loan?
When you apply for our business credit, we’ll assess the risk assessment of your business and provide you with a customised proposal that includes loan amount, term and interest rates. A business loan is an upfront-priced loan which means you know in advance the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I am charged?
The interest rates on business loans rates depend on several factors such as the amount that is that is borrowed, what company assets the money are used to purchase as well as the field the company operates in, the long the company is in operation, what percentage of the business has enough cash flow to pay for the loan, and the overall health and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs with our business loans, and you’ll be aware of the amount you’ll need to pay, and when, from the very first day. There’s no compounding and there are no additional charges (as long as you make your payments in time).
We do not charge an Application Fee. You can request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan earlier?
You can decide to repay all of your advance loan at any time.
If you decide to take this route, please contact our helpful company lending professionals. They’ll offer you with details for repayment and an early payout figure. This will be calculated as the total of the principal remaining plus any accrued interest as of the time of early payment and 1.5 percent of the remaining principal plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow general, we offer repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing the ways we gather information, use it, and exchange it, as well as secure your information, is of huge importance and a vital 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 personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and security. We employ a highly sophisticated bank verification system to instantly verify the bank account details online so we can provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a business owner borrows from assets they own to make the loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a company asset such as a vehicle or piece or equipment.
The vast majority of lenders, even the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan, then the asset might be sold by the lender. In essence, it is a way of securing new financing taking advantage of the value of what you already have.
What do I need security to get a business loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access but we require a personal guarantee. need a personal guarantee. So long as you comply with your loan commitments (as detailed in your loan contract document), asset security will never be required. For loans that exceed $150,000, typically, you will need a personal ensure and security in the form of the charge of assets.