FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Redwood Park Small Business Loans
Tell me about the Redwood Park Small Business Loans
Redwood Park unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
Apply to this Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and funds may be in your account within 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. The company loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any fees, charges or charges. This is then broken down into either weekly or daily installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business need, such as cash flow management, business renovations, marketing to purchase inventory, new equipment, for general working capital and so much more. The loan is not available for personal use.
About Larger Redwood Park Business Loans
What is the Larger Redwood Park Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been operating for at least three years and generate an annual revenue of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funding be utilised?
A Larger Business Loan can be used for almost all company reason, such as business remodeling, buying inventory or new equipment for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It’s by way of charge over assets and can be registered with the PPSR or filing a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is general in nature, rather than specifying security over a particular asset. The person who signs the guarantee is personally responsible if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR allows preference over private property granted according to the date the security interest was registered.
An affidavit is an official document lodged to provide an official notice of a claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250K we can offer an initial pre-approval that will help make the process. It is possible to do this without a credit check and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial health checks. It is neither an offer nor a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could be based on different terms.
The application process
Do I qualify for funds?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of 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 company lending specialist will call you to assist you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we usually offer a response in one hour, provided you submit your request during standard company hours and allow us to utilise the bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can offer an answer in just 1 company day.
For the Larger Business Loan ($100K up to $500,000) we might be capable of provide you with a conditional pre-approval within about 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Some agreements have been approved within the space of 24 hours.
The most effective method would be to ensure you apply during normal business hours. You can also allow us to use our modern bank verification link to verify your bank account information online. If you opt to send us copies of your bank statements , it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) We can usually offer an answer in just one hour if you make your application in normal business times and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements, we are able to offer an answer within the span of one business day.
For the Larger Business Loans ($100K and up) we could be capable of offer you with conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Some transactions have received approval within just 24 hours.
The fastest method can be ensure you apply during standard business hours. Also, let us use the modern bank verification to verify your bank information online. If you upload duplicates of your banking accounts, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of elements for determining what is the health that is your company and the extent of payments your business will be able to support. The amount you receive from your loan will be contingent on the specifics of your company.
When you apply for a particular amount, we take into consideration a variety of elements to assess the well-being for your business and the level of payments your business can afford. The total amount of your loan will depend on the specifics for your business.
Fees & repayments
How much do you charge for an company loan?
When you apply for our business loans, we’ll assess the risk assessment that you have for your company and provide you with a customised offer including the loan amount, the terms and interest rates. The company loan is an upfront priced loan therefore you will know in advance the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I pay?
The interest rates on business loans rates differ based on various factors such as the amount that is that is borrowed, what business assets the money will be used for as well as the field the business operates in, how long the business has been running as well as what percentage of the business has enough cash flow to support the loan, and the general health or financial standing of the business.
What are the charges?
There are no hidden costs for our company loans, and you’ll know exactly how much you’ll need to pay and when, from day one. There’s not any compounding interest and no extra fees (as long as you are able to make your payments on time).
We do not charge an application fee. You can apply for a loan with with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay out the loan early?
You can choose to repay all of your loan early at any time.
If you choose to pursue this option, please talk to one of our helpful company lending experts. They will offer you with the details of your repayment and an early payout figure. This will be calculated as the total of the remaining principal amount and the accrued interest up to the time of early payout, plus 1.5 percent of the principal balance and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in with your cash flow general, we provide repayments either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing how we collect the information we collect, use, share and secure your information, is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account information online. This allows us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of an asset they own to make the funding. The asset can be an asset belonging to the personal, like the family home or a company asset such as a vehicle or piece of equipment.
The vast majority of the lenders not just the banks with the biggest size, prefer to secure loans against an asset. If you’re struggling to pay back the loan, then your asset may be taken over by the lender. In essence, it’s means of securing additional financing making use of the value of what you already own.
Do I need security to secure an company loan?
For loans that exceed $150,000, the requirement for asset security is not required before you are able to access the money however, we require a personal guarantee. require a personal guarantee. As long as you follow the terms of your loan (as stipulated in the loan contract), asset security is not needed. If you take out loans in excess of $150,000 typically, you will need an individual ensure and security that is in the form charges on assets.