FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Red Hill South Small Business Loans
Let me know about the Red Hill South Small Business Loans
Red Hill South unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
The application to get the Small Business Loan in under 10 minutes over the phone, receive an instant response and funds may be available in just 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. We offer a business loan is an upfront priced loan and you’ll know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company reason, such as the management of cash flow, business improvements, advertising for purchasing inventory or new equipment, or as general working capital and so much more. The loan is not available to fund personal expenses.
About larger Red Hill South Business Loans
What is the Larger Red Hill South Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit of this size the company needs to be operating for at least three years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used for nearly all company need, including business remodeling, buying equipment or inventory or as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This can be done in the form of a charge over assets and can include registration with the PPSR or registering as a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature rather than stating security over an asset. The person signing the guarantee is personally responsible if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be assigned depending on the date that a security interest was registered.
The caveat can be described as a formal document that is filed to provide the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for larger business loans that exceeds $250,000, we may offer an initial pre-approval in order to ease the process. It is possible to get this done without a credit verification and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial well-being questions. It is not an offer or guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you might receive could be subject to different conditions.
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 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form in few minutes and an experienced business credit specialist will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent, 12 months of bank records, IRD statement and the last two years’ finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually provide a response in one hour, provided you submit your request during standard company times and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statements we can provide a decision in just one business day.
For the Larger Business Loan ($100K and up) we may be able to offer you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some agreements have been approved in 24 hours.
The quickest way to apply is to make sure you apply during normal business hours, and let us use the advanced bank verification system link to instantly check your bank’s information online. If you choose to upload duplicates of your banking accounts, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour – as long as you make your application within standard business time and let us use the bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements, we’ll be able to provide a decision in just an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be in a position to offer you with conditional pre-approval within 6 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. Certain offers have been approved in just 24 hours.
The fastest method can be make sure you apply during standard business hours. You can also allow us to use the sophisticated bank verification to verify your bank account information online. If you choose to send us copies of your bank statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount we will consider a number of factors that determine your health of your business as well as the amount of payments your business can support. The total amount of your loan will depend on the specific circumstances that are unique to your business.
When you apply for a particular amount, we will consider a number of elements to assess how much we can lend you such as health of the company and the extent of payments your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for our business loans, we will assess the risk profile the business and provide you with a customised proposal that includes the amount of loan, the term and the interest rates. The company loan is an upfront priced loan which means you know the exact amount due, which includes any interest rates, fees or charges.
What determines the amount I pay?
The interest rates on company loans rates differ based on various factors including the amount borrowed, the company assets the money will be used for, the industry the company is operating in, how long the business has been in operation for, how long the company has enough cash flow to cover the loan, and general well-being and creditworthiness of the company.
What are the fees?
There are no hidden costs for our company loans, and you’ll be aware of the amount you be required to pay, and when, right from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You are able to get a cash loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the total amount of your loan in full at any time.
If you do decide to pursue this option, please call our helpful business loans specialists. They will offer you with repayment details and an early payout figure. This will be calculated as the sum of the principal remaining and the accrued interest up to the date of early payout and 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about how we collect the information we collect, use, share and protect your information, is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to customer security and security. We use an advanced bank verification system link to instantly verify your bank account details online to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the business owner utilises an asset they own to secure the funds for a loan. The asset may be an asset belonging to the personal, like the family home or a business asset such as a vehicle or piece of equipment.
The majority of lenders, even the banks with the biggest size, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, your asset may be sold by the lender. In essence it is the process of securing additional financing using the worth of the asset you already own.
What do I need security to secure an business loan?
For loans that exceed $150K, it is not necessary to secure assets upfront to access the money However, we do need the personal guarantee. So long as you comply with the terms of your loan (as stipulated in the loan contract) the security of assets will never be required. For loans over $150,000 generally, there is a personal guarantee and security is provided in the form of a charge over assets.