FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Remuera Small Business Loans
Let me know what you think of the Remuera Small Business Loans
Remuera unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the money could be in your account within 24 hours. Traditional business loans reference an annual interest rate plus other fees and charges. The business loan is a pre-paid loan so you will know in advance the total amount payable including the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business need, such as managing cash flows, business renovations, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Remuera Business Loans
What is the Larger Remuera Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. It is necessary to 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 to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A larger business loan can be used to fund almost every business reason, such as company improvements, purchasing new 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 requires security?
Asset security is necessary for accessing funds over $150,000. This is by way of charge over assets, which could also include registration in the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is general in nature, rather than specifying security over a particular asset. The person who is signing the ensure is personally liable in the event that the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR gives priority over personal property to be assigned according to the date the security interest that is registered.
An affidavit is an official document lodged to provide the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for the Larger Business Loan of more than $250K we can offer an initial pre-approval to smooth out the process. We may be able to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial well-being checks. It’s neither an offer nor a guarantee of funds. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you are offered could be subject to different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a 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)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application in few minutes and an experienced company lending specialist will be in touch to assist you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent twelve months of bank records, IRD statement and the last two years’ finalised financial statements, plus 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 offer an answer within an hour – as long as you make your application within standard business hours and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we will be able to provide an answer within the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we could be able to offer you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some agreements have been approved within the space of 24 hours.
The fastest way is to make sure you apply during normal business hours. You can also allow us to use our advanced bank verification system to check your bank’s information online. If you send us duplicates of your banking statements it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we usually provide an answer within one hour, provided you make your application within standard business timings and allow us to use the bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statements, we are able to provide a decision within one business day.
If you are applying for Larger Business Loans ($100K or more) we might be able to provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Some offers have been approved within the space of 24 hours.
The fastest way can be make sure you apply during standard business hours, and allow us to use the sophisticated bank verification to verify your bank information online. If you decide to send us documents from your account accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount, we look at a variety of aspects that determine the health for your company as well as the amount of repayments that your business is able to afford. The total amount of your loan will be contingent on the specifics that are unique to your company.
When you make an application for a particular amount, we consider a variety of factors to assess your health for your business and the amount of repayments your business can afford. The total amount of your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
What is the cost for an company loan?
When you make an application for the company loan, we’ll assess the risk profile of your business and offer you with a customised proposal that includes the loan amount, the terms and interest rates. A company loan is a loan that is priced upfront therefore you will know in advance the total amount payable including any costs, fees, or interest rates.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on a variety of factors including the amount borrowed, the company assets the money will be used for as well as the field the company is operating in, how long the company has been operating and in the event that the business has sufficient cash flow to pay for the loan, and the general health or financial standing of the company.
What are the costs?
There are no hidden costs for our business loans. You’ll be aware of the amount it is that you need to pay, and when, starting from the day you sign up. There’s no compounding interest and no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You can apply for a loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Do I have the option of paying off the loan in advance?
You can decide to repay the entire amount of the loan early at any time.
If you do decide to do this please contact our helpful business credit experts. We will offer you with details on repayment and an early payment figure. This will be calculated as the sum of the remaining principal amount and any accrued interest at the date of early payout and 1.5 percent of the remaining principal and any outstanding fees.
How do repayments work?
To make sure you do not miss payments and to work with your cash flow standard, we provide repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing the ways we gather information, use it, and exchange it, as well as safeguard your data, is crucial and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system link to instantly verify your bank account information online, allowing us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term “asset-based” refers to borrowing where the business owner borrows from an asset they own to obtain the loan. The asset can be either an individual property, such as the family home or a company property like a truck or other piece of machinery.
The vast majority of the lenders 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’s a way of securing new financing making use of the value of what you already have.
Are I need security to get a business loan?
For loans of up to $150,000, the requirement for asset security is not required before you are able to access the money However, we require a personal guarantee. require an individual guarantee. As long as you follow the loan terms (as stipulated in your loan contract document), asset security will never be required. For loans of over $150K generally, there is the option of a personal guarantee and security that is in the form charges on assets.