FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Rosewater Small Business Loans
Tell me what you think of the Rosewater Small Business Loans
Rosewater unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from an traditional business loan?
The application to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the funds could be on your account within 24 hours. Traditional business loans are based on an annual rate of interest along with other charges and fees. The business loan is a loan that is priced upfront therefore you’ll be aware of the amount you will have to pay, including any interest, fees or charges. Then, it is divided into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any business need, such as the management of cash flow, business remodeling, marketing to purchase inventory, new equipment, to fund general working capital and much more. The loan cannot be used for personal reasons.
About Larger Rosewater Business Loans
What is the Larger Rosewater Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to be trading for at least 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can the funds be used for?
A Larger Business Loan can be used for nearly every company use, including company improvements, purchasing equipment or inventory for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. This is by way of charge over assets, which could also include registration in the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally based rather than specifying security over a particular asset. The person who is signing the ensure is personally liable in the event that the company 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 records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR gives the priority of personal property granted depending on the date that a security interest was registered.
The caveat can be described as a formal document that is filed to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan that exceeds $250K we can offer an initial pre-approval that will help make the process. We could be able to do this without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial well-being checks. This is not an offer of credit or guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer you might receive could have different conditions.
Application process
Are I eligible for funding?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and a dedicated company lending specialist will call you to guide you through the process.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K and up) we typically offer an answer within one hour if you apply in standard company timings and let us utilise the bank verification system link to immediately verify your bank account information online. If you want to submit copies of your bank statements , we are able to provide an answer within just 1 business day.
For the Larger Business Loan ($100K to $500K) we may be able to provide you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some transactions have received approval in 24 hours.
The most efficient method would be to make sure you apply during standard business hours. Also, allow us to use the advance bank verification link to instantly verify your bank account information online. If you choose to send us duplicates of your banking statements , it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we can often offer an answer within an hour – as long as you submit your request during normal business times and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to submit copies of your bank statements, we’ll be able to offer an answer within an business day.
For Larger Business Loans ($100K or more) we might be capable of provide the conditional pre-approval in around six hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain deals have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. You can also permit us to use the sophisticated bank verification to instantly verify your bank information online. If you send us the copies of bank statements it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of aspects in order to assess your well-being for your business and the extent of the repayments your business will be able to support. The amount you receive from your loan will depend on the specific circumstances for your business.
If you apply for a particular amount, we look at a range of variables to determine the health that is your company and the level of the repayments your company will be able to support. The total amount of your loan will depend on the specifics of your company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to request business loans with us company loans, we’ll assess the risk assessment that you have for 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 cost loan and you’ll be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates depend on a variety of factors including the amount borrowed, the business assets the funds will be used for and the sector the company is in, how long the company has been in operation for, what percentage of the company has enough cash flow to pay for the loan, and general health or financial standing of the company.
What are the charges?
There aren’t any hidden charges with our company loans, and you’ll know precisely what it is that you need to pay, and when, starting from day one. There’s no compounding and no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to request a credit loan no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You can repay the entire amount of the loan early at any time.
If you choose to pursue this option, please speak to our friendly company lending specialists. They will provide you with details on repayment and an early payout figure. The figure will be calculated as the total of the principal remaining and the accrued interest up to the time of the early payout and 1.5 percent of the remaining principal plus any outstanding fees.
How do you make repayments work?
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 are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear the ways we gather information, use it, and exchange it, as well as secure your information, is crucial and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to security for our customers and security. We use an advanced bank verification system to immediately verify the bank account details online, allowing us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner makes use of an asset that they own to obtain a loan. The asset may be an individual property, such as the family home, or a business asset such as a truck or piece of equipment.
The majority of lending institutions, including the big banks, tend to secure loans against an asset. If you are having difficulty paying back the loan, your assets could be transferred to the lender. In essence it’s an opportunity to secure additional financing using the value of what you already have.
What do I require security to get an company 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 the personal guarantee. In the event that you fulfill the loan terms (as specified in your loan contract document) Asset security will never be required. For loans over $150,000 typically, you will need a personal guarantee and security in the form a charge over assets.