FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Ringwood Small Business Loans
Let me know more about Ringwood Small Business Loans
Ringwood unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from the traditional company loan?
The application to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and funds may be on your account within 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. Our business loan is an upfront priced loan so you will know ahead of time the total amount due, which includes any fees, charges or charges. This is then broken down into either a daily or weekly installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost every company reason, such as control of cash flow company improvements, advertising to purchase inventory, new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
About the Larger Ringwood Business Loans
What is the Larger Ringwood Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your company needs to have been operating for at least three years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funds be utilised?
A Larger Business Loan can be used to fund almost every company purpose including business renovations, purchase of inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This can be done by taking a charge over assets, and could include registering this in the PPSR or making as a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally in nature rather than stipulating security over a particular asset. The person who signs the ensure is personally accountable if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including items or assets). The PPSR grants priority over personal property to be assigned depending on the date that a registration of a security interest.
Caveats are legal document that is filed to provide notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan that exceeds $250K we may be able to provide an initial pre-approval that will help make the process. We could be able to do this without a credit verification and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial well-being checks. It’s not an offer of credit or guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you might receive could be subject to different conditions.
Application process
Are I eligible for funding?
You can apply for a business 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)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a few minutes and a dedicated company lending specialist will be in touch to assist you.
For a loan of up to $100,000 you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent, 12 months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we typically provide a response in one hour, provided you apply during quality business timings and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements we can provide an answer in just an business day.
For Larger Business Loans ($100K up to $500,000) we may be able to offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be quicker based on the particular circumstances of each application. Some deals have been approved in the space of 24 hours.
The quickest way to apply is to ensure you apply during normal company hours. You can also allow us to use our advanced bank verification system to verify your bank information online. If you decide to upload duplicates of your banking statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we typically provide an answer within an hour – provided you apply within standard business hours and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide 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 to $500K) We may be likely to offer you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based upon the circumstances for each application. Some offers have been approved in 24 hours.
The fastest method would be to make sure you apply during standard business hours. Also, allow us to use our advanced bank verification system to verify your bank information online. If you choose to send us the copies of bank statements, it will take a little longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a certain amount, we consider a variety of elements to determine what is the well-being of your company and the amount of payments your business will be able to support. The amount you receive from your loan will be contingent on the particular circumstances the business.
When you apply for a set amount, we will consider a number of aspects to determine your well-being of the company as well as the amount of payments your company is able to afford. The amount you receive from your loan will depend on the particulars the company.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to request one of our business financing, we’ll assess the risk assessment for your company and provide an individualised offer including the amount of loan, the term and interest rates. It is a company loan is an upfront cost loan which means you be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
Business loan interest rates differ based on various factors including the amount borrowed, what business assets the funds are used to purchase in addition to the industry that the business is operating in, how long the company has been running, what percentage of the business has enough cash flow to support the loan, and the overall health as well as creditworthiness company.
What are the cost?
There aren’t any hidden charges with our business loans. You’ll know precisely what it is that you need to pay and when, starting from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as as long as you pay 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 the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this 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 earlier?
You may choose to pay back the total amount of your loan early at any time.
If you are deciding to do this please call our helpful company lending experts. They’ll provide you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal remaining and accrued interest to the time of the early payout in addition to 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
To ensure you do not miss payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear the ways we gather, use, exchange and ensure the security of your information is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We make use of an advanced bank verification system that allows you to immediately confirm your bank account information online so we can offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner makes use of an asset they own to make the loan. The asset can be either an asset belonging to the personal, like the family home or it could be a company asset such as a truck or piece or equipment.
The majority of banks, even the largest banks, are inclined to make loans secured by an asset. If you’re struggling to pay back the loan, the asset might be sold by the lender. In essence, it’s the process of securing new financing using the value of what you already own.
Are I need security to secure a company loan?
For loans up to $150,000 no asset security is required in advance to gain access to the funds, however we require a personal guarantee. require a personal guarantee. As long as you follow your loan commitments (as stated in your loan contract) Asset security is not required. If you take out loans in excess of $150,000 generally, there is personal ensure and security in the form the charge of assets.