FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Rocklea Small Business Loans
Let me know what you think of the Rocklea Small Business Loans
Rocklea unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from the traditional business loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and have the funds available in just 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. This business loan is an upfront priced loan so you will 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 installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company purpose including cash flow management, business renovations, marketing, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About the Larger Rocklea Business Loans
What is the Larger Rocklea Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funds be utilised?
A large company loan can be used for almost every company purpose including company remodeling, buying inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It is usually by taking a charge over assets, and could be registered in the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature, rather than stipulating the security of a specific asset. The person signing the guarantee is personally responsible if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR gives the priority of personal property assigned according to the date a security interest was registered.
Caveats are legal document filed to offer the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan of $250K or more it is possible to offer an initial pre-approval in order to simplify the process. We might be able to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial health questions. It is neither an offer nor a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you may receive may have different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in few minutes and an experienced business credit specialist will call you to guide you through the process.
To apply for up to $100,000, you’ll require identification details (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent twelve months of bank records, IRD statements, last 2 years finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we typically offer an answer within one hour, provided you apply in standard business time and let us utilise the bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statements , we are able to provide a decision within just one business day.
For the Larger Business Loan ($100K and up) we may be in a position to provide you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the circumstances of each application. Certain offers have been approved within the space of 24 hours.
The most effective method is to make sure you apply during normal business hours and allow us to use the advance bank verification link to confirm your bank details online. If you opt to upload copies of your bank statements , it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour, provided you submit your request in standard business hours and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can provide a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to provide you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain offers have been approved in just 24 hours.
The fastest method would be to make sure you apply during standard business hours, and let us use the sophisticated bank verification to confirm your bank details online. If you choose to upload the copies of bank accounts, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a specific amount we will consider a number of factors to determine your well-being of your company and the level of repayments your company can support. The amount you receive from the loan will be determined by the specifics of your business.
When you make an application for a certain amount, we look at a range of variables to assess the well-being of the company and the amount of repayments your business can afford. The total amount of your loan will be contingent on the specific circumstances of your company.
Fees & repayments
How do you charge for an company loan?
When you request our business financing, we’ll assess the risk assessment the company and provide you with a tailored offer including the amount of the loan, the duration and the interest rates. This company loan is a loan that is priced upfront so you will know the exact amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I am charged?
Interest rates for business loans rates differ based on various factors like the amount of money that is borrowed, what company assets the money are used to purchase in addition to the industry that the company operates in, the long the business has been in operation as well as in the event that the business has enough cash flow to cover the loan, as well as the general well-being or creditworthiness of the company.
What are the fees?
There aren’t any hidden costs for our company loans, and you’ll know precisely how much you’ll need to pay, and when, from the very first day. There’s no compounding and no extra fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You are able to request a credit loan with without any upfront costs 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 proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the 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 do decide to do this please contact our helpful company loan specialists. We will offer you with details for repayment and an early payment figure. The figure will be calculated as the total of the principal balance and the accrued interest up to the time of the early payout, plus 1.5% of the remaining principal as well as any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payment dates and to align your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear the ways we gather, use, exchange and protect your information, is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive as well as financial data. 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 your bank account details online so we can offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner borrows from an asset that they own to secure the loan. The asset can be an individual asset, such as the family home or a company asset such as a truck as well as a piece of machine.
The vast majority of the lenders even the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset might be taken over by the lender. In essence it’s the process of securing additional financing using the worth of the asset you already have.
Should I need security to get an company loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access but we do need an individual guarantee. So long as you comply with the loan terms (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150,000 generally, there is a personal guarantee and security that is in the form charges on assets.