FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Royal Oak Small Business Loans
Let me know how you are able to avail the Royal Oak Small Business Loans
Royal Oak unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
You can apply for this Small Business Loan in under 10 minutes by phone. You will receive a same day response and the money could be in your account in 24 hours. Traditional company loans reference an interest rate per annum together with additional fees and charges. We offer a company loan is a loan that is priced upfront therefore you’ll be aware of the total amount due, which includes any interest, fees or charges. Then, it is broken down into weekly or daily payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business reason, such as the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
About larger Royal Oak Business Loans
What is the Larger Royal Oak Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the company needs to be operating for at least three years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be used for?
A larger business loan can be used to fund almost all business need, including company renovations, to purchase inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It is usually by way of charge on assets, and may include the registration of this with the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay credit that is general in nature, rather than stipulating security over an asset. The person who is signing the ensure is personally responsible if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including items or assets). The PPSR gives the priority of personal property granted depending on the date that a security interest has been registered.
Caveats are legal document filed to provide notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250K it’s possible to offer a preliminary pre-approval to help smooth out the process. We may be able to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial well-being checks. It’s in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you may receive may have different conditions.
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)
- can demonstrate at least 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a couple minutes, and a dedicated company credit specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s License) along with a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim current financial year financials, Aged Payables and Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we can often provide a response in one hour, provided you submit your request during standard company time and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements we can offer a decision within one business day.
For the Larger Business Loan ($100K up to $500,000) we could be in a position to offer you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved in 24 hours.
The most efficient method is to make sure you apply during standard business hours. Also, allow us to use the modern bank verification link to instantly verify your bank information online. If you decide to upload the copies of bank statements it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we can often provide an answer within one hour, provided you apply in normal business times and you allow us to use the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll provide the decision within the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be able to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The fastest way 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 check your bank’s information online. If you send us the copies of bank statements it can take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of aspects that determine your health of the company as well as the amount of repayments your business can support. The total amount of the loan will be determined by the particular circumstances of your business.
When you apply for a certain amount, we take into consideration a variety of aspects to assess your well-being of the company and the amount of payments your company can afford. The total amount of your loan will be contingent on the specific circumstances the business.
Fees & repayments
How much should you charge for a business loan?
If you decide to make an application for one of our business loans, we’ll assess the risk assessment the business and offer an individualised offer including the loan amount, the terms and interest rates. The company loan is an upfront priced loan therefore you will be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What determines the amount I pay?
Interest rates for company loans rates differ based on various factors like the amount of money borrowed, what business assets the funds are used to purchase, the industry the company operates in, how long the company has been in operation for, whether the business has sufficient cash flow to cover the loan, and the general well-being and creditworthiness of the business.
What are the cost?
There are no hidden costs with our business loans, and you’ll know exactly how much it is that you be required to pay, and at what time, from day one. There’s no compounding and there are no additional charges (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can apply for a loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses 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. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan earlier?
You can decide to repay all of your loan in full at any time.
If you choose to take this route, please contact our helpful business credit experts. They will offer you with details on repayment and an early payment figure. This will be calculated as the total of the principal remaining and accrued interest to the time of the early payout in addition to 1.5% of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line with your cash flow routine, we provide repayments either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being transparent about the ways we gather information, use it, and exchange it, as well as protect your information, is crucial and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We utilise a sophisticated banking verification system to instantly verify your bank account information online so we can provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner utilises an asset they own to obtain the funding. The asset can be either an individual property, such as the family home or an business asset like a truck or piece of equipment.
The majority of lending institutions, not just the largest banks, are inclined to guarantee loans against an asset. If you have trouble paying back the loan, the asset might be transferred to the lender. In essence, it’s the process of securing new financing using the value of what you already have.
Do I need security for a company loan?
For loans up to $150,000 there is no requirement for asset security in advance to gain access to the funds, however we require a personal guarantee. need an individual guarantee. So long as you comply with the loan terms (as stated in your loan contract document), asset security will never be required. For loans that exceed $150K, generally, you are able to get personal ensure and security in the form of the charge of assets.