FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Rostrevor Small Business Loans
Let me know how you can avail the Rostrevor Small Business Loans
Rostrevor unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an ordinary business loan?
It is imaginable to apply to your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and have the funds in your account within 24 hours. Traditional business loans are based on an interest rate per annum as well as other fees and charges. The company loan is a cash-based loan which means you know ahead of time the total amount to be paid, including any fees, interest or charges. Then, it is broken down into weekly or daily payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as managing cash flows, business remodels and marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available for personal use.
About the Larger Rostrevor Business Loans
What is the Larger Rostrevor Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the company needs to be trading for at least 3 years, and have an annual income of $700K. 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 company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used for nearly every company use, including business renovations, purchase of inventory or new equipment for 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 needed to access funding over $150,000. It’s by way of charge over assets and can include registration on the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than specifying security over an asset. The person signing the guarantee is personally accountable if the business lender is not able 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 reflects security interests registered in respect of personal property (including items or assets). The PPSR gives priority over personal property to be assigned according to the date the security interest has been registered.
An affidavit is an official document filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250K we can offer a preliminary pre-approval to help ease the process. We may be able to do this without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial well-being checks. This is not an offer or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you receive could be subject to different terms.
Application process
Do I qualify for funds?
You may be eligible 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)
- must show at least six months worth of trade (for 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 fast and easy. Complete the online form within a few minutes and an experienced company lending specialist will call you to assist you.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent and 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we typically offer an answer within one hour, provided you submit your request in quality company hours and let us utilise the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements , we will be able to offer the decision within 1 business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Certain offers have been approved within less than 24 hours.
The most effective method would be to ensure you apply during standard business hours. Also, let us use the advanced bank verification system link to check your bank’s information online. If you opt to upload duplicates of your banking statements it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we usually provide an answer within one hour, provided you make your application in standard business times and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statements, we are able to offer a decision within an business day.
For Larger Business Loans ($100K or more) we may be capable of provide you with a conditional pre-approval within six hours. After 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 specifics of each application. Some offers have been approved within just 24 hours.
The fastest method is to make sure you apply during normal business hours. You can also allow us to use our sophisticated bank verification link to verify your bank information online. If you opt to upload duplicates of your banking accounts, it will take a little longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a certain amount we will consider a number of aspects in order to assess how much we can lend you health for your business and the amount of payments your company can support. The amount you receive from the loan will be determined by the specifics for your company.
When you apply for a particular amount, we take into consideration a variety of variables to assess the health for your business and the amount of the repayments your business can afford. The total amount of your loan will depend on the specifics of your business.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to request one of our company credit, we’ll assess the risk assessment of your business and provide you with a customised offer that includes the amount of loan, the term and interest rates. The business loan is a loan that is priced upfront which means you know the exact amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I am charged?
The interest rates on business loans rates vary due to factors like the amount of money borrowed, the business assets the money will be used for in addition to the industry that the business operates in, the long the business has been running for, how long the company has enough cash flow to cover the loan, and general health or financial standing of the company.
What are the costs?
There are no hidden fees for our company loans, and you’ll know precisely what you be required to pay and when, from the day you sign up. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an Application Fee. You can apply for a loan with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of your loan in full at any time.
If you choose to do this please call our helpful company loan experts. They’ll provide you with repayment details along with an early payout estimate. This will be calculated as the sum of the principal balance and accrued interest to the date of early payout, plus 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
To make sure you do not miss repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about the ways we gather the information we collect, use, share and protect your information, is crucial and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We employ a highly sophisticated banking verification system to immediately confirm your bank account information online, allowing us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an company owner uses assets they own to secure the funds for a loan. The asset can be either an individual property, such as the family home, or a company asset such as a truck or other piece of machinery.
The majority of the lenders including the big banks, tend to guarantee loans against assets. If you’re struggling to pay back the loan then the asset might be sold by the lender. In essence it is an opportunity to secure new financing by using the value of what you already have.
Do I require security to get a business loan?
For loans up to $150K there is no requirement for asset security before you are able to access the money, however we require a personal guarantee. need a personal guarantee. As long as you follow your loan commitments (as stated in your loan contract) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150K generally, there is an individual guarantee and security that is in the form charges on assets.