FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Richlands Small Business Loans
Let me know about the Richlands Small Business Loans
Richlands unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
Apply to this Small Business Loan in under 10 minutes over the phone, receive an instant response and the funds could be on your account within 24 hours. Traditional company loans are based on an annual interest rate as well as other fees and charges. Our company loan is an upfront priced loan therefore you’ll be aware in advance of the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
About the Larger Richlands Business Loans
What is the Larger Richlands Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size the business needs to have been in operation for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be used for?
A large company loan can be used to fund almost any business use, including company remodeling, buying new equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It is usually by taking a charge over assets, and could include registration with the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally in nature rather than stating security over an asset. The person who is signing the guarantee is personally liable if 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 contains security interests granted to individuals who own personal property (including goods or assets). The PPSR grants preference over private property granted according to the date the security interest that is registered.
Caveats are legal document that is filed to provide the legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan of $250K or more it is possible to offer a preliminary pre-approval to help smooth out the process. We might be able to apply for this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial well-being checks. It’s not an offer or guarantee of funds. A conditional approval is subject a full credit assessment and any offer you receive could have different terms.
Application process
Do I have the right to receive funds?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a 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 simple. Complete the online form within a few minutes and an experienced business expert in lending will contact you to assist you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K or more) we typically offer an answer within one hour, provided you apply at quality business time and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements , we are able to offer an answer in just an business day.
For Larger Business Loans ($100K or more) we may be able to provide you with conditional pre-approval within 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved in the space of 24 hours.
The fastest way is to make sure you apply during normal company hours. You can also let us use the modern bank verification link to check your bank’s information online. If you send us documents from your account statements , it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we can often offer a response in one hour, provided you apply within standard business hours and permit us to use the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statements we can provide an answer in just an business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Certain agreements have been approved within 24 hours.
The quickest method can be ensure you apply during standard business hours. Also, allow us to use the advance bank verification to check your bank’s information online. If you choose to send us copies of your bank statements it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of variables for determining the health for your business and the level of repayments that your company can afford. The total amount of your loan will depend on the specific circumstances for your company.
When you submit an application for a particular amount, we take into consideration a variety of variables to determine your health of the business and the level of repayments that your company can afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your company.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for one of our business financing, we’ll assess the risk profile the business and provide you with a customised offer including the amount of the loan, the duration and interest rates. It is a business loan is an upfront-priced loan so you will know in advance the total amount due, which includes any charges or interest.
What is the basis for the rate I am charged?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, the company assets the funds will be used for and the sector the company is in, how long the business has been running for, in the event that the company has enough cash flow to cover the loan, and overall well-being or creditworthiness of the company.
What are the fees?
There are no hidden costs for our business loans. You’ll know precisely how much you be required to pay, and at what time, from day one. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can make an application for loans with without any upfront costs or any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay all of your loan in full at any time.
If you do decide to pursue this option, please call our helpful business loan experts. The professionals will provide you with details on repayment as well as an early payout amount. This will be calculated as the total of the principal remaining and accrued interest to the date of early payout plus 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work with your cash flow standard, we provide repayments either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as safeguard your data, is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to security for our customers and security. We make use of an advanced bank verification system to instantly confirm your bank account information online. This allows us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a company owner uses an asset that they own to obtain the funding. The asset may be a personal asset like the family home or it could be a business property like a truck or piece of equipment.
The majority of the lenders including the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then the asset might be offered for sale by the lender. In essence it is an opportunity to secure new financing making use of the value of what you already have.
Should I require security to secure a company loan?
For loans up to $150K no asset security is required before you can access the money but we require a personal guarantee. need a personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract) Asset security is not needed. For loans of over $150K generally there is personal guarantee and security that is in the form charges on assets.