FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Rothesay Bay Small Business Loans
Let me know how you are able to avail the Rothesay Bay Small Business Loans
Rothesay Bay unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes online or by phone. You will receive an immediate response, and have the funds in your account within 24 hours. Traditional business loans reference an annual interest rate plus other fees and charges. The business loan is an upfront priced loan which means you know in advance the total amount to be paid, including any interest, fees or charges. Then, it is divided into a daily or weekly installment amount.
What can be 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, business renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
About Larger Rothesay Bay Business Loans
What is the Larger Rothesay Bay Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to be in operation for at least 3 years, and have an annual income of $700K. You must 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 to demonstrate at least 12 months of trading.
What can the funding be used for?
A larger company loan can be used for almost every business need, including company renovations, to purchase 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 is secured?
Asset security is needed to access funding over $150,000. It is usually by way of charge over assets, which could also include the registration of this through the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is general in nature rather than stipulating the security for a particular asset. The person who signs the ensure is personally liable in the event that the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR grants the priority of personal property assigned according to the date the security interest was registered.
The caveat can be described as a formal document lodged to provide the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250K it’s possible to offer an initial pre-approval that will help smooth out the process. We could be able to get this done without credit checks and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial well-being questions. It’s not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer that you may receive may be subject to different conditions.
Do I qualify for funds?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in few minutes and an experienced business loan specialist will call you to help you.
To be eligible for up to $100,000 you’ll require ID details (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 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 statements, IRD statement as well as the two most recent years’ financial statements, plus interim financials from the current financial year such as age-related payables and aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within one hour, provided you make your application within quality company timings and permit us to use the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statement, we’ll provide a decision within 1 company day.
For Larger Business Loans ($100K or more) we might be likely to offer you with a conditional pre-approval within six hours. After you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Some transactions have received approval within the space of 24 hours.
The quickest method would be to ensure you apply during standard business hours, and allow us to use our advance bank verification link to verify your bank information online. If you choose to send us the copies of bank statements , it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we can often offer an answer within one hour – as long as you submit your request within normal business hours and let us use the bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer a decision within an business day.
For Larger Business Loans ($100K up to $500,000) we may be able to offer you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this can be faster depending on the particular circumstances of each application. Some transactions have received approval in 24 hours.
The fastest method can be make sure you apply during standard business hours. You can also let us use the sophisticated bank verification to confirm your bank details online. If you opt to send us copies of your bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a particular amount, we look at a variety of factors to determine the well-being of your business and the level of repayments that your company can afford. The total amount of your loan will be contingent on the particular circumstances the business.
When you apply for a set amount, we take into consideration a variety of aspects to determine how much we can lend you such as well-being of the company and the extent of the repayments your company will be able to support. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
How do you charge for an business loan?
If you decide to apply for business loans with us company financing, we will assess the risk assessment for your business and offer you with a customised offer, including loan amount, term and the interest rates. The company loan is an upfront-priced loan so you will know the exact amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I will be charged?
Interest rates for company loans rates depend on a variety of factors including the amount of money borrowed, the company assets the money will be used for, the industry the company is operating in, how long the company has been operating, in the event that the business has sufficient cash flow to pay for the loan, and general health or financial standing of the business.
What are the charges?
There aren’t any hidden charges for our company loans. You’ll know exactly how much you need to pay, and when, right from the very first day. There’s no compounding interest, and no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You are able to make an application for loans with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay out the loan earlier?
You can decide to repay the entire amount of your loan in full at any time.
If you decide to do this please contact our helpful company loan specialists. We will offer you with the details of your repayment and an early payout figure. This will be calculated as the sum of the principal balance and any accrued interest at the time of early payment plus 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
To help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Security of your data, and knowing the ways we gather data, process, exchange and safeguard your data, is of huge importance and an integral 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 financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We use an advanced banking verification system to instantly verify your bank account details online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of the assets they have to obtain a loan. The asset could be a personal asset like the family home, or a business asset such as a truck or piece of equipment.
The vast majority of the lenders not just the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan then your asset may be taken over by the lender. In essence it’s a way of securing additional financing using the worth of the asset you already own.
Are I need security for an company loan?
Up to $150,000 in loans the requirement for asset security is not required before you are able to access the money but we do require the personal guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract), asset security will never be needed. For loans over $150K generally there is the option of a personal ensure and security that is in the form charges on assets.