FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ringwood East Small Business Loans
Tell me about the Ringwood East Small Business Loans
Ringwood East unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
It is possible to apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and the funds could be in your account in 24 hours. Traditional company loans are based on an interest rate per annum along with other charges and fees. Our business loan is an upfront priced loan so you will be aware of the total amount payable including any interest, fees or charges. Then, it is broken down into either a daily or weekly payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company reason, such as managing cash flows, business renovations, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal purposes.
About the Larger Ringwood East Business Loans
What is the Larger Ringwood East Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been operating for at least three years, and have an annual income of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost all company use, including company improvements, purchasing new equipment or inventory or as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It’s by taking a charge over assets and can include the registration of this through the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is general in nature rather than stating the security of a specific asset. The person signing the guarantee is personally accountable if the company creditor 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 contains security interests registered in respect of personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be granted according to the date a security interest that is registered.
An affidavit is an official document that is filed to provide an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 we may be able to provide a preliminary pre-approval to help ease the process. We may be able to do this without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health checks. It is neither an offer nor a guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a company 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)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a couple minutes, and a dedicated business credit specialist will be in touch to help you.
To apply for up $100,000 you’ll require identification details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we usually provide a response in one hour if you apply at quality company timings and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements , we will be able to offer a decision within the span of one business day.
For the Larger Business Loan ($100K and up) we may be likely to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval in 24 hours.
The most efficient method can be ensure you apply during standard company hours. You can also let us use the modern bank verification link to verify your bank account information online. If you decide to send us copies of your bank accounts, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we usually offer an answer in just one hour if you apply within standard business timings and allow us to use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statement, we’ll offer a decision within an business day.
If you are applying for Larger Business Loans ($100K and up) We may be in a position to provide the conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Certain transactions have received approval in less than 24 hours.
The fastest way would be to make sure you apply during standard business hours. You can also allow us to use the advance bank verification link to confirm your bank details online. If you choose to send us documents from your account statement, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a specific amount we consider a variety of elements in order to assess your well-being of your business and the level of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the specifics for your business.
If you apply for a certain amount, we will consider a number of elements to assess your health of your business and the level of payments your business can afford. The amount you receive from your loan will depend on the particular circumstances for your company.
Fees & repayments
How much do you charge for an business loan?
When you make an application for business loans with us company loan, we will assess the risk profile that you have for your business and offer you with a customised offer including the amount of loan, the term and the interest rates. A business loan is an upfront-priced loan therefore you will be aware of the total amount payable including any charges, interest rates or fees.
What determines the amount I will be charged?
Business loan interest rates vary due to factors such as the amount that is of money borrowed, the business assets the money will be used for in addition to the industry that the company is in, how long the business has been in operation and what percentage of the company has sufficient cash flow to cover the loan, and the general health as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges for our company loans, and you’ll know exactly how much it is that you need to pay and when, right from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You can make an application for loans with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay out the loan early?
You can choose to repay all of your loan early at any time.
If you choose to take this route, please talk to one of our helpful company credit professionals. We will provide you with details on repayment as well as an early payout amount. This will be calculated as the total of the principal remaining plus any accrued interest as of the time of early payout in addition to 1.5% of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we provide payments that are either daily or weekly. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect the information we collect, use, share and secure your information, is of paramount importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated bank verification system that allows you to instantly verify the bank account details online, allowing us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner utilises an asset that they own to obtain the funds for a loan. The asset could be a personal asset like the family home or an business property like a truck or other piece of machinery.
The majority of lenders, including the major banks, prefer to secure loans against assets. If you’re struggling to pay back the loan then the asset might be taken over by the lender. In essence, it’s the process of securing new financing by taking advantage of the value of what you already have.
Do I need security to secure an business loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds but we do require a personal guarantee. As long as you follow your loan commitments (as detailed in your loan contract) Asset security will never be needed. For loans of over $150,000 generally, there is an individual ensure and security that is in the form charges on assets.