FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Riverview Small Business Loans
Let me know what you think of the Riverview Small Business Loans
Riverview unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from the traditional business loan?
You can apply to the Small Business Loan in under 10 minutes on 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 refer to an interest rate per annum as well as other fees and charges. This business loan is a pre-paid loan and you’ll be aware of the total amount due, which includes any fees, interest or charges. Then, it is broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business need, such as managing cash flows, business improvements, advertising, to purchase inventory or new equipment, for general working capital, and much more. The loan is not available for personal purposes.
About larger Riverview Business Loans
What is the Larger Riverview Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been in operation for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funding be used for?
A Business Loan of a larger size can be used to fund almost any company purpose including company improvements, purchasing equipment or inventory, as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It is usually in the form of a charge against assets and can include the registration of this through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally based rather than specifying security over an asset. The person signing the guarantee is personally liable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR permits preference over private property assigned depending on the date that a security interest was registered.
The caveat can be described as a formal document that is filed to provide an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger business loans that is greater than $250K, we may offer an initial pre-approval in order to ease the process. We could be able to get this done without credit checks and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial well-being questions. It’s not an offer or guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could be on different terms.
Application process
Do I have the right to receive funds?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a few minutes and an experienced business lending specialist will call you to help you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Information on the application including credit consent twelve months of bank records, IRD statement and the last two years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we can often provide a response in one hour, provided you apply during quality business timings and let us utilise the bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statement, we’ll offer the decision in just one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be in a position to offer you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some offers have been approved in the space of 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours, and allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you opt to upload copies of your bank statements , it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within one hour – provided you apply in standard business hours and you allow us to use the bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statements, we will be able to provide a decision within an business day.
If you are applying for Larger Business Loans ($100K or more) we could be in a position to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Some transactions have received approval within just 24 hours.
The quickest method is to make sure you apply during normal business hours and permit us to use the sophisticated bank verification to instantly verify your bank information online. If you send us the copies of bank statement, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a certain amount, we will consider a number of factors for determining your well-being for your business and the amount of the repayments your company can afford. The total amount of the loan will be determined by the specific circumstances the company.
When you make an application for a certain amount, we consider a variety of variables to determine how much we can lend you such as health that is your business and the level of repayments that your company can support. The amount you receive from your loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much do you charge for a company loan?
If you decide to apply for business loans with us company financing, we will assess the risk assessment that you have for your company and offer you with a tailored offer, including the loan amount, the terms and interest rates. This company loan is an upfront priced loan which means you know in advance the total amount payable including any charges, interest rates or fees.
What determines the amount I will be charged?
The interest rates on company loans rates depend on a variety of factors like the amount of money of money borrowed, the company assets the money will be used for and the sector the business operates in, how long the business is in operation for, whether the business has enough cash flow to cover the loan, and the overall health as well as creditworthiness business.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll be aware of the amount you need to pay, and at what time, from day one. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments on time).
We do not charge an Application Fee. You are able to request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You can choose to repay the total amount of your advance loan at any time.
If you choose to pursue this option, please talk to one of our helpful company lending specialists. The professionals will provide you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the time of early payment plus 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow routine, we offer repayments either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of huge 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 standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We make use of an advanced bank verification system to immediately verify the bank account details online so we can provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses an asset that they own to secure a loan. The asset can be an asset belonging to the personal, like the family home or it could be a business asset such as a truck or piece or equipment.
The majority of the lenders even the major banks, prefer to secure loans against assets. If you have trouble paying back the loan then the asset might be offered for sale by the lender. In essence it is a way of securing new funding using the worth of the asset you already own.
What do I need security to secure a company loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as stated in your loan contract) Asset security is not required. If you take out loans in excess of $150K generally, you can get an individual ensure and security that is in the form the charge of assets.