FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Rothwell Small Business Loans
Let me know more about Rothwell Small Business Loans
Rothwell unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from a traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes by phone. You will receive an instant response and the money could be in your account within 24 hours. Traditional company loans refer to an interest rate per annum along with other charges and fees. Our business loan is a pre-paid loan therefore you’ll know ahead of time the total amount payable including any fees, interest or charges. Then, it is divided into weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost any business need, such as cash flow management, company improvements, advertising for purchasing inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Rothwell Business Loans
What is the Larger Rothwell Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which 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 credit in this amount, your company needs to be trading for at least 3 years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (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 larger business loan can be used for nearly any company purpose including business remodeling, buying inventory or new equipment or as 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 required for accessing funds over $150,000. It is usually by way of charge on assets, and could include registration with the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to repay a loan which is generally based rather than defining the security for a particular asset. The person who signs the ensure is personally liable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be granted in accordance with the date on which a security interest that is registered.
Caveats are legal form of document to offer the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250K it is possible to offer an initial pre-approval in order to ease the process. It is possible to make this decision without a credit check and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering a few financial health checks. This is neither an offer nor a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you are offered could be on different conditions.
The application process
Do I have the right to receive funds?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a couple minutes, and an experienced company loan specialist will contact you to assist you.
To apply for up $100,000, you’ll require identification details (valid Driver’s License) and a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer within one hour – as long as you make your application in standard business hours and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can offer a decision within an company day.
For the Larger Business Loan ($100K and up) we may be likely to offer the conditional pre-approval in about 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 upon the circumstances for each application. Some offers have been approved in just 24 hours.
The most efficient method would be to make sure you apply during normal company hours. Also, permit us to use the modern bank verification link to verify your bank account information online. If you upload duplicates of your banking accounts, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour – provided you submit your request during standard business hours and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statements, we are able to provide an answer in as little as one business day.
For Larger Business Loans ($100K and up) We may be likely to offer you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The quickest method is to ensure you apply during standard business hours and allow us to use the sophisticated bank verification to instantly confirm your bank details online. If you choose to send us duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of variables for determining how much we can lend you health of your business as well as the amount of payments your company can support. The amount you receive from your loan will depend on the specifics the company.
If you apply for a set amount, we take into consideration a variety of elements to determine your well-being of the company as well as the amount of payments your company is able to afford. The total amount of your loan will be contingent on the particulars the business.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to make an application for one of our business loans, we’ll assess the risk profile the company and offer you with a tailored offer that includes the loan amount, the terms and the interest rates. It is a company loan is an upfront priced loan and you’ll be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I pay?
Interest rates for company loans rates depend on several factors like the amount of money borrowed, the company assets the money will be used for, the industry the company operates in, how long the company is in operation for, how long the company has sufficient cash flow to cover the loan, and overall well-being or financial standing of the business.
What are the fees?
There aren’t any hidden charges with our company 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 interest, and there are no additional charges (as as you make your payments in time).
We don’t charge an Application Fee. You can request a credit loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan earlier?
You can choose to repay all of your loan early at any time.
If you decide to take this route, please speak to our friendly company loan professionals. The professionals will provide you with repayment details along with an early payout estimate. This will be calculated as the sum of the principal balance and accrued interest to the time of early payment plus 1.5% of the principal balance and any fees that remain unpaid.
How do repayments work?
To help you avoid missing payments and to work with your cash flow general, we offer repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing the ways we gather data, process, exchange and ensure the security of your information is of huge importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of clients and security. We use an advanced banking verification system to immediately verify your bank account information online to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the business owner makes use of the assets they have to obtain the funds for a loan. The asset can be an individual asset, such as the family home or a business asset such as a truck or piece or equipment.
The vast majority of lenders, including the major banks, prefer to secure loans against assets. If you have trouble paying back the loan, your asset may be sold by the lender. In essence it is a way of securing new financing by using the worth of the asset you already own.
Are I require security to secure a business loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds However, we do need a personal guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract) the security of assets is not required. For loans of over $150K generally, you are able to get personal ensure and security in the form an asset charge.