FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Runciman Small Business Loans
Tell me how you can avail the Runciman Small Business Loans
Runciman unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and the money could be in your account in 24 hours. Traditional company loans refer to an interest rate per annum plus other fees and charges. Our business loan is a pre-paid loan and you’ll know ahead of time the amount you will have to pay, including any interest, fees or charges. This is then broken down into either a daily or weekly installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business use, including cash flow management, business remodeling, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used to fund personal expenses.
About larger Runciman Business Loans
What is the Larger Runciman Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan of this size the company needs to be in operation for at least 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost any business need, including business remodeling, buying inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. This can be done in the form of a charge over assets, and may include the registration of this in the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally based rather than specifying the security of a specific asset. The person who signs the ensure is personally responsible if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR permits priority over personal property to be granted according to the date a registration of a security interest.
An affidavit is an official form of document to provide an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking larger company loans that is greater than $250,000 we can offer an initial pre-approval to simplify the process. We may be able to do this without a credit check, and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial health questions. It’s not an offer or guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you receive could be based on different terms.
The application process
Can I be eligible for funding?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in few minutes and a dedicated company loan specialist will call you to help you.
To apply for up $100,000, you’ll require ID details (valid Driver’s License) and an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent as well as 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim current financial year financials including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often provide an answer within an hour if you submit your request during quality business times and let us make use of the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements , we are able to provide the decision within just an business day.
If you are applying for a Larger Business Loan ($100K and up) we may be capable of provide you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be quicker based on the circumstances of each application. Certain agreements have been approved within 24 hours.
The quickest method would be to make sure you apply during normal company hours and allow us to use the advanced bank verification system link to check your bank’s information online. If you send us copies of your bank statement, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within an hour – as long as you make your application within standard business hours and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statement, we’ll provide the decision within one business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be capable of offer you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours, and let us use the advance bank verification to instantly check your bank’s information online. If you send us documents from your account statements it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of elements that determine what is the well-being of the business and the level of payments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances the company.
When you make an application for a set amount, we take into consideration a variety of variables to assess the health of the business and the amount of the repayments your company can support. The total amount of your loan will depend on the particular circumstances of your business.
Fees & repayments
How much should you charge for an business loan?
When you apply for the business credit, we’ll assess the risk assessment that you have for your company and provide you with a customised offer including the loan amount, the terms and interest rates. It is a company loan is an upfront cost loan and you’ll know the exact amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Interest rates for business loans rates differ based on various factors like the amount of money of money borrowed, the business assets the funds are used to purchase as well as the field the company operates in, how long the company has been running for, what percentage of the business has sufficient cash flow to cover the loan, as well as the overall well-being and creditworthiness of the business.
What are the fees?
There aren’t any hidden costs for our business loans. You’ll know precisely how much it is that you be required to pay, and when, right from the very first day. There’s not any compounding interest and there are no additional charges (as as you make your payments punctually).
We don’t charge an application fee. You can get a cash loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You may choose to pay back the entire amount of your loan in full at any time.
If you are deciding to do this please call our helpful business credit professionals. They will provide you with details for repayment along with an early payout estimate. This will be calculated as the total of the remaining principal amount and the accrued interest up to the time of early payout and 1.5% of the principal remaining plus any outstanding fees.
How do repayments work?
To make sure you do not miss payments and to work with your cash flow routine, we provide repayments either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing how we collect data, process, exchange and protect your information, is vital and a vital aspect 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 as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We employ an exceptionally sophisticated bank verification system to instantly verify your bank account information online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner uses an asset that they own to get the funding. The asset can be an individual asset, such as the family home or a business asset like a truck or other piece of machinery.
The majority of the lenders even the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan then the asset might be sold by the lender. In essence, it’s a way of securing new funding using the value of what you already own.
Should I need security for a company 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 do need an individual guarantee. If you adhere to the terms of your loan (as detailed in your loan contract document) Asset security is not required. For loans over $150K typically, you will need personal ensure and security in the form the charge of assets.