FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Riverstone Terraces Small Business Loans
Let me know more about Riverstone Terraces Small Business Loans
Riverstone Terraces unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from an ordinary business loan?
Apply to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and have the funds available in just 24 hours. Traditional company loans reference an annual rate of interest together with additional fees and charges. Our company loan is a loan that is priced upfront and you’ll be aware of the total amount payable including the interest, fees and charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company reason, such as managing cash flows, company improvements, advertising, to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Riverstone Terraces Business Loans
What is the Larger Riverstone Terraces Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been operating for a minimum of 3 years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funds for?
A larger company loan can be used for almost all company use, including business remodeling, buying inventory or new equipment for 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 required for accessing funds over $150,000. It is usually in the form of a charge on assets, and may include registering this in the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a promise to repay a loan which is generally based rather than stating the security for a particular asset. The person who signs the guarantee is personally responsible if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be granted in accordance with the date on which a registration of a security interest.
An affidavit is an official form of document to offer an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000 we can offer an initial pre-approval to simplify the process. We may be able to get this done without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial health questions. It’s neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you receive could be subject to different terms.
Do I have the right to receive funds?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (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 loan specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often provide a response in one hour – as long as you apply within standard company time and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to send us copies of your bank statements , we are able to offer an answer within just the span of one company day.
For the Larger Business Loan ($100K or more) we could be capable of provide the conditional pre-approval within about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some deals have been approved in less than 24 hours.
The quickest method is to make sure you apply during standard business hours, and let us use the advanced bank verification system to instantly verify your bank account information online. If you choose to send us duplicates of your banking statement, it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we usually offer an answer within one hour – provided you make your application in normal business times and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements, we are able to provide the decision within an business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be able to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending on the specifics of each application. Certain offers have been approved within 24 hours.
The most effective method is to make sure you apply during normal business hours and allow us to use our advance bank verification link to confirm your bank details online. If you decide to send us duplicates of your banking statement, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a particular amount, we consider a variety of variables to determine the health for your company and the extent of the repayments your company can support. The amount you receive from the loan will be determined by the particular circumstances the business.
When you apply for a certain amount, we look at a range of aspects to determine how much we can lend you such as health that is your company and the extent of payments your company can afford. The amount you receive from your loan will be determined by the particular circumstances the business.
Fees & repayments
What is the cost for a business loan?
If you decide to request one of our business loans, we will assess the risk profile of your company and offer an individualised offer including the amount of the loan, the duration and interest rates. This business loan is an upfront-priced loan so you will know in advance the total amount payable including any interest rates, fees or charges.
What determines the amount I’m charged?
Business loan interest rates differ based on various factors including the amount borrowed, what business assets the funds will be used for in addition to the industry that the company is in, how long the business has been running for, what percentage of the company has enough cash flow to pay for the loan, and the general well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our company loans, and you’ll know precisely what it is that you need to pay, and at what time, from the day you sign up. There’s no compounding interest, and no additional fees (as as you make your payments in time).
We don’t charge an application fee. You can get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with setting up 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 loan amount.
Can I repay the loan in advance?
You can repay the entire amount of the advance loan at any time.
If you choose to take this route, please speak to our friendly company loans specialists. The experts will offer you with details for repayment and an early payment figure. The figure will be calculated as the total of the remaining principal amount and the accrued interest up to the date of early payout and 1.5% of the principal balance and any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either daily or weekly. They will be automatically deducted from your business account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about the ways we gather, use, exchange and ensure the security of your information is of huge importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We use an advanced bank verification system that allows you to immediately verify your bank account details online. This allows us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner borrows from an asset that they own to make the funds for a loan. The asset could be a personal asset like the family home, or an business property like a truck as well as a piece of machine.
The majority of the lenders even the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, your assets could be taken over by the lender. In essence it’s a way of securing new financing by using the value of what you already have.
What do I require security to get a company loan?
For loans of up to $150K, no asset security is required prior to the loan’s access, however we do require a personal guarantee. In the event that you fulfill your loan commitments (as specified in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans over $150K generally there is a personal ensure and security is provided in the form of a charge over assets.