FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Rongotai Small Business Loans
Tell me more about Rongotai Small Business Loans
Rongotai unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and the money could be in your account in 24 hours. Traditional company loans refer to an annual interest rate as well as other fees and charges. This business loan is an upfront priced loan so you will be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is divided into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company reason, such as the management of cash flow, company improvements, advertising, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Rongotai Business Loans
What is the Larger Rongotai Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been operating for a minimum of 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate 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 company renovations, purchase of inventory or new equipment for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. This is by way of charge on assets, and could include the registration of this through the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is generally in nature rather than stating security over an asset. The person who is signing the ensure is personally accountable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR gives preference over private property granted according to the date a registration of a security interest.
A caveat is a legal document filed to provide notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger company loans of $250,000 or more it’s possible to offer an initial pre-approval in order to simplify the process. We might be able to do this without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial health questions. This is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject a full credit assessment and any offer that you receive could have different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a couple minutes, and an experienced business credit specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Application details including credit consent and 12 months of bank records, IRD statements, last 2 years finalised financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically offer an answer in just one hour, provided you make your application at standard company times and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statement, we’ll provide a decision within just one business day.
For the Larger Business Loan ($100K or more) we could be likely to provide you with conditional pre-approval in around six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The most effective method would be to ensure you apply during normal company hours, and allow us to use our advanced bank verification system link to check your bank’s information online. If you choose to send us duplicates of your banking statements , it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within an hour – provided you apply during standard business time and let us use the bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your banking statements we can offer the decision within 1 business day.
For Larger Business Loans ($100K to $500K) we may be in a position to provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Certain agreements have been approved within less than 24 hours.
The quickest method is to ensure you apply during normal business hours. Also, allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you upload duplicates of your banking statements it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a specific amount we will consider a number of aspects that determine the well-being of the business as well as the amount of repayments that your company is able to afford. The total amount of your loan will be contingent on the specific circumstances for your business.
If you apply for a particular amount, we take into consideration a variety of elements to determine the well-being that is your business and the level of payments your company can support. The total amount of your loan will be contingent on the particulars of your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to make an application for one of our company loans, we’ll assess the risk profile of your business and provide you with a customised offer including the loan amount, the terms and the interest rates. This business loan is an upfront priced loan and you’ll be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I will be charged?
The interest rates on business loans rates differ based on various factors such as the amount that is borrowed, the company assets the money will be used for in addition to the industry that the business is operating in, how long the company is in operation and what percentage of the company has enough cash flow to support the loan, as well as the overall well-being as well as creditworthiness company.
What are the charges?
There aren’t any hidden charges with our company loans. You’ll know precisely how much you’ll be required to pay and at what time, from the day you sign up. There’s no compounding interest, and no additional fees (as long as you are able to make your payments in time).
We do not charge an Application Fee. You can request a credit loan no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan earlier?
You may choose to pay back the entire amount of your advance loan at any time.
If you decide to take this route, please call our helpful business lending professionals. They’ll offer you with details for repayment along with an early payout estimate. This is calculated as the sum of the remaining principal amount and accrued interest to the time of early payment plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To help you avoid missing repayments and to fit in your cash flow cycle 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?
Security of your data, and knowing how we collect information, use it, and exchange it, as well as protect your information, is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We use an advanced bank verification system that allows you to instantly verify your bank account information online so we can offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner borrows from the assets they have to secure a loan. The asset can be a personal asset like the family home or an business property like a truck as well as a piece of machine.
The vast majority of lending institutions, not just the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan, then your asset may be sold by the lender. In essence it’s means of securing new financing by taking advantage of the value of what you already have.
Should I require security to get an company loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money, however we do require a personal guarantee. If you adhere to your loan obligations (as detailed in your loan contract document) the security of assets is not required. For loans of over $150,000 generally, there is the option of a personal guarantee and security in the form of a charge over assets.