FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Reynella East Small Business Loans
Tell me about the Reynella East Small Business Loans
Reynella East unsecured loans offers amounts of between $5,000 and $100,000. Terms range 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 traditional company loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and funds may be on your account within 24 hours. Traditional business loans reference an interest rate per annum along with other charges and fees. The company loan is an upfront priced loan therefore you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is divided into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business reason, such as cash flow management, company improvements, advertising to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
About larger Reynella East Business Loans
What is the Larger Reynella East Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size, your company needs to have been operating for at least three years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be used for?
A large business loan can be used to fund almost any company use, including business renovations, purchase of new equipment or inventory, as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It is usually as a result of an charge over assets, and could be registered in the PPSR or making as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally based rather than stipulating security over a particular asset. The person who is signing the ensure is personally responsible if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR allows preference over private property assigned according to the date a security interest was registered.
Caveats are legal form of document to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans of more than $250,000 we can offer a preliminary pre-approval to help smooth out the process. We may be able to make this decision 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 some financial well-being questions. It’s neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you may receive may be subject to different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 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 process for applying is fast and easy. Just fill out the online application in few minutes and an experienced company lending specialist will call you to assist you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent and 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) We can usually provide a response in one hour – as long as you apply at standard business timings and allow us to utilise the bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements we can provide a decision within just one business day.
For Larger Business Loans ($100K up to $500,000) we may be capable of offer you with 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 transactions have received approval in less than 24 hours.
The fastest way is to make sure you apply during normal company hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you upload copies of your bank statement, it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) We can usually provide an answer within one hour if you submit your request within normal business hours and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements we can provide a decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be likely to offer you with a conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain offers have been approved within the space of 24 hours.
The fastest method can be ensure you apply during standard business hours, and allow us to use the sophisticated bank verification link to instantly verify your bank information online. If you decide to upload copies of your bank statement, it may take a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a specific amount we will consider a number of variables in order to assess your health for your company and the extent of payments your company can afford. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
When you make an application for a particular amount, we consider a variety of elements to assess the health of your business and the level of repayments your company can afford. The amount you receive from your loan will depend on the specifics for your business.
Fees & repayments
What is the cost for an company loan?
If you decide to apply for the business financing, we will assess the risk profile that you have for your business and offer an individualised offer including the amount of the loan, the duration and the interest rates. A business loan is an upfront-priced loan which means you be aware of the total amount payable including any charges or interest.
What is the basis for the rate I will be charged?
Business loan interest rates vary due to variables like the amount to be borrowed, what business assets the funds will be used for, the industry the business is operating in, how long the business has been running as well as how long the business has enough cash flow to support the loan, and general well-being as well as creditworthiness company.
What are the charges?
There aren’t any hidden costs for our company loans, and you’ll know precisely how much it is that you be required to pay, and at what time, from day one. There’s no compounding interest and no extra fees (as as you make your payments in time).
We do not charge an application fee. You can apply for a loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back the entire amount of your loan early at any time.
If you are deciding to do this please talk to one of our helpful company credit specialists. They’ll provide you with details for repayment along with an early payout estimate. This will be calculated as the total of the remaining principal amount plus any accrued interest as of the date of early payout and 1.5 percent of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To ensure you do not miss payment dates and to align your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about how we collect data, process, exchange and protect your information, is of paramount importance 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 techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We use an advanced bank verification system that allows you to immediately verify your bank account details online to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner makes use of the assets they have to obtain the funding. The asset can be an individual asset, such as the family home or an company asset like a truck or piece of equipment.
The majority of banks, not just the banks with the biggest size, prefer to secure loans against assets. If you are having difficulty paying back the loan, your assets could be transferred to the lender. In essence, it’s a way of securing new financing by making use of the value of what you already own.
Should I require security for a business loan?
For loans that exceed $150K, it is not necessary to secure assets 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 obligations (as stipulated in the loan contract) Asset security is not required. For loans that exceed $150,000, generally, you can get personal guarantee and security in the form of a charge over assets.