FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Rochedale Small Business Loans
Let me know about the Rochedale Small Business Loans
Rochedale unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
The application to get the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and funds may be available in just 24 hours. Traditional company loans have an annual interest rate together with additional fees and charges. The business loan is an upfront priced loan which means you be aware of the total amount due, which includes any interest, fees or charges. This is then broken down into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company purpose including the management of cash flow, company improvements, advertising to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal use.
Concerning Larger Rochedale Business Loans
What is the Larger Rochedale Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled 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 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funding for?
A larger business loan can be used for almost every business use, including business renovations, purchase of equipment or inventory for 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 obtain funding above $150,000. It is usually in the form of a charge on assets, and could include registering this on the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature, rather than specifying the security for a particular asset. The person who is signing the ensure is personally responsible if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR grants preference over private property granted in accordance with the date on which a security interest has been registered.
Caveats are legal document that is filed to provide the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger business loans of more than $250,000 it’s possible to offer an initial pre-approval that will help simplify the process. We could be able to get this done without credit checks and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial well-being checks. This is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you are offered could be on different conditions.
The application process
Do I qualify for funds?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in just a few minutes, and an experienced business expert in lending will call you to guide you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s Licence) and a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent, 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within an hour, provided you make your application during quality business timings and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements we can provide the decision in just one business day.
If you are applying for a Larger Business Loan ($100K or more) we could be capable of offer you with conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are around 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 24 hours.
The most effective method can be make sure you apply during normal company hours and allow us to use the advance bank verification link to instantly verify your bank account information online. If you upload duplicates of your banking accounts, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide an answer within one hour – provided you submit your request in normal business times and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statement, we’ll offer the decision within the span of one business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of provide the conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Some transactions have received approval within 24 hours.
The quickest method can be make sure you apply during standard business hours. Also, allow us to use our advanced bank verification system to instantly verify your bank account information online. If you upload duplicates of your banking statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a specific amount we look at a variety of variables for determining your well-being of the company and the level of repayments that your company is able to afford. The total amount of the loan will be determined by the specifics the company.
When you make an application for a certain amount, we look at a range of factors to assess your health that is your company as well as the amount of repayments your business is able to afford. The total amount of your loan will be determined by the particular circumstances of your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for the company credit, we’ll assess the risk assessment that you have for your business and offer you with a customised offer, including loan amount, term and the interest rates. The company loan is a loan that is priced upfront therefore you will be aware of the total amount to be paid, including any interest rates, fees or charges.
What determines the rate that I will be charged?
Interest rates for company loans rates depend on several factors including the amount of money borrowed, the business assets the money will be used for, the industry the company operates in, how long the business has been operating, whether the company has sufficient cash flow to support the loan, and the general health or financial standing of the company.
What are the fees?
There are no hidden costs for our business loans, and you’ll know exactly how much you’ll need to pay and when, right from the day you sign up. There’s no compounding interest, and no extra fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You are able to get a cash loan with without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of the loan at any point in time.
If you are deciding to do this please talk to one of our helpful company lending experts. We will offer you with the details of your repayment and an early payment figure. This will be calculated as the total of the remaining principal amount and any accrued interest at the date of early payout plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Security of your data, and knowing the ways we gather the information we collect, use, share and ensure the security of your information is crucial and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We make use of an advanced banking verification system to immediately verify your bank account information online, allowing us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner borrows from an asset that they own to make the loan. The asset could be an individual property, such as the family home, or an business asset such as a truck as well as a piece of machine.
The majority of lending institutions, not just the major banks, prefer to secure loans against an asset. If you’re struggling to pay back the loan, then your asset may be taken over by the lender. In essence it is an opportunity to secure new financing using the worth of the asset you already have.
Do I require security for an company loan?
For loans up to $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 your loan obligations (as stipulated in the loan contract) Asset security is not needed. For loans that exceed $150K, generally, you are able to get personal ensure and security that is in the form a charge over assets.