FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Redbank Plains Small Business Loans
Tell me how you can avail the Redbank Plains Small Business Loans
Redbank Plains unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
It is possible to apply to this Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and have the funds on your account within 24 hours. Traditional company loans are based on an annual rate of interest together with additional fees and charges. We offer a business loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into either a daily or weekly repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business use, including cash flow management, business remodels and marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
Concerning Larger Redbank Plains Business Loans
What is the Larger Redbank Plains Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to be trading for at least 3 years, and have an annual income of at least $700,000. You must be 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 to prove at minimum 12 months of continuous trading.
How can the funds be used for?
A Business Loan of a larger size is a great option for almost any business need, including business remodeling, buying equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It is usually by way of charge on assets and can include registering this on the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally in nature rather than defining the security for a particular asset. The person who is signing the ensure is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
An affidavit is an official document that is filed to offer the legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan that is greater than $250,000, we may offer an initial pre-approval in order to make the process. We might be able to do this without a credit verification and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial health questions. This is not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer you might receive could be subject to different conditions.
The application process
Do I qualify for funds?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and an experienced business lending specialist will contact you to guide you.
To apply for up to $100,000 you’ll require ID details (valid Driver’s Licence) and an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within one hour – as long as you apply during standard business hours and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statement, we’ll offer an answer in as little as an company day.
For the Larger Business Loan ($100K up to $500,000) we might be in a position to offer the conditional pre-approval within six hours. After you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The quickest method can be make sure you apply during standard business hours. Also, allow us to use the modern bank verification link to instantly verify your bank account information online. If you decide to upload copies of your bank statement, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour if you make your application in normal business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statements, we will be able to provide the decision within the span of one business day.
For the Larger Business Loans ($100K to $500K) we may be in a position to provide you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some agreements have been approved in just 24 hours.
The fastest way would be to make sure you apply during normal business hours, and allow us to use our sophisticated bank verification to confirm your bank details online. If you decide to send us documents from your account statements it will take a little longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a particular amount, we look at a variety of variables for determining how much we can lend you well-being of your business and the amount of repayments that your business can support. The amount you receive from the loan will be determined by the specifics of your business.
If you apply for a particular amount, we take into consideration a variety of factors to assess your well-being of your company as well as the amount of repayments that your business can support. The amount you receive from your loan will depend on the particular circumstances for your company.
Fees & repayments
What is the cost for a company loan?
When you request business loans with us company financing, we will assess the risk profile of your company and offer you with a customised proposal that includes the amount of the loan, the duration and interest rates. It is a company loan is an upfront-priced loan and you’ll know the exact amount due, which includes any costs, fees, or interest rates.
What determines the rate that I will be charged?
Business loan interest rates depend on a variety of variables like the amount to be borrowed, what business assets the funds will be used for as well as the field the company is operating in, how long the business has been running for, whether the business has enough cash flow to pay for the loan, and overall well-being or creditworthiness of the company.
What are the charges?
There aren’t any hidden costs with our business loans, and you’ll know precisely what you’ll be required to pay, and when, from day one. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan early?
You can choose to repay all of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful company lending experts. They’ll offer you with details on repayment along with an early payout estimate. It will be calculated using the total of the principal balance and the accrued interest up to the time of early payout plus 1.5% of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
To make sure you do not miss payment dates and to align with your cash flow standard, we offer repayments that are either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear the ways we gather, use, exchange and protect your information, is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our clients and security. We make use of an advanced bank verification system to immediately verify your bank account details online to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner borrows from an asset that they own to secure the loan. The asset may be an individual property, such as the family home, or it could be a business asset such as a vehicle or piece or equipment.
The vast majority of banks, including the largest banks, are inclined to secure loans against assets. If you are having difficulty paying back the loan, then the asset might be transferred to the lender. In essence, it’s a way of securing additional financing making use of the value of what you already have.
Do I require security for a business loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds however, we require a personal guarantee. require a personal guarantee. As long as you follow the loan terms (as stipulated in your loan contract) Asset security will never be required. For loans over $150K generally, there is an individual ensure and security in the form of a charge over assets.