FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Royal Oak Small Business Loans
Tell me more about Royal Oak Small Business Loans
Royal Oak unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
The application for your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and funds may be in your account within 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. This company loan is a pre-paid loan so you will be aware of the total amount due, which includes any fees, interest or charges. This is then divided into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any business purpose including control of cash flow business renovations, marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
About larger Royal Oak Business Loans
What is the Larger Royal Oak Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been 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) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large company loan can be used for nearly all business purpose including business renovations, purchase of new equipment or inventory for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. It’s by way of charge against assets, and could include registering this through the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally in nature rather than stipulating security over a particular asset. The person who is signing the ensure is personally liable in the event that the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR allows the priority of personal property granted depending on the date that a security interest that is registered.
A caveat is a legal document filed to provide the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger business loans of more than $250K we can offer an initial pre-approval that will help simplify the process. We could be able to get this done without a credit check and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial well-being questions. This is not an offer or guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you are offered could be based on different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (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 complete the online application in just a few minutes, and a dedicated company expert in lending will be in touch to guide you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months’ worth 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 the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent, 12 months of bank statements, IRD statements, last 2 years finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within one hour, provided you apply at quality company timings and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements , we are able to offer an answer within one company day.
For the Larger Business Loan ($100K to $500K) we may be capable of offer you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Certain agreements have been approved within 24 hours.
The most efficient method would be to make sure you apply during normal business hours, and let us use the advanced bank verification system link to check your bank’s information online. If you decide to send us the copies of bank statements , it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour, provided you submit your request during normal business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements we can offer a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we could be in a position 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 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 just 24 hours.
The fastest way can be make sure you apply during standard business hours. You can also permit us to use the modern bank verification to instantly verify your bank account information online. If you send us duplicates of your banking accounts, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a certain amount we look at a variety of elements that determine how much we can lend you health for your company as well as the amount of the repayments your company is able to afford. The amount you receive from your loan will depend on the specific circumstances the business.
When you make an application for a particular amount, we take into consideration a variety of aspects to determine how much we can lend you such as well-being that is your company as well as the amount of repayments your business is able to afford. The amount you receive from your loan will be determined by the particulars of your business.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for the company loan, we’ll assess the risk assessment the business and offer an individualised offer that includes the amount of the loan, the duration and the interest rates. It is a business loan is a loan that is priced upfront which means you know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I will be charged?
Interest rates for business loans rates differ based on various factors including the amount borrowed, what business assets the money will be used for, the industry the business is operating in, how long the business has been in operation, how long the business has sufficient cash flow to support the loan, and the general health as well as creditworthiness company.
What are the fees?
There aren’t any hidden costs for our business loans. 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 no additional fees (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to request a credit loan with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan in advance?
You can choose to repay all of your advance loan at any time.
If you decide to pursue this option, please speak to our friendly company loan experts. We will provide you with details for repayment and an early payout figure. The figure will be calculated as the sum of the remaining principal amount and accrued interest to the date of early payout in addition to 1.5 percent of the principal remaining and any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow routine, we provide repayments either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being transparent about the ways we gather the information we collect, use, share and secure your information, is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to the security of our clients as well as their privacy. We make use of an advanced bank verification system that allows you to immediately confirm your bank account information online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner borrows from an asset they own to secure the loan. The asset can be either an individual asset, such as the family home or it could be a company asset such as a vehicle or other piece of machinery.
The vast majority of banks, even the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan, then the asset could be offered for sale by the lender. In essence it is a way of securing new funding using the worth of the asset you already have.
Are I require security for an business loan?
For loans up to $150K it is not necessary to secure assets before you can access the money but we do need a personal guarantee. If you adhere to the loan terms (as specified in your loan contract), asset security will never be required. For loans over $150,000 generally there is an individual ensure and security in the form of a charge over assets.