FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mount Roskill Small Business Loans
Tell me about the Mount Roskill Small Business Loans
Mount Roskill unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from a traditional business loan?
Apply to get this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get a same day response and the money could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. We offer a company loan is a cash-based loan which means you know in advance the amount you will have to pay, including any interest, fees or charges. This is then broken down into either weekly or daily installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business use, including control of cash flow company improvements, advertising to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal reasons.
About Larger Mount Roskill Business Loans
What is the Larger Mount Roskill 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 over a fixed term for up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
It is crucial 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 credit that is this large the company needs to be trading for at least 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funds for?
A Larger Business Loan can be used to fund almost all company need, including business improvements, purchasing inventory or new equipment or 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 needed for accessing funds over $150,000. It is usually in the form of a charge on assets and can include registration in the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature, rather than stating the security of a specific asset. The person who is signing the guarantee is personally liable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR gives priority over personal property to be assigned 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 is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of $250,000 or more, we may offer an initial pre-approval that will help simplify the process. We may be able to apply for this without a credit check and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves the answer to a series of financial health checks. It is not an offer of credit or guarantee of financing. Acceptance without condition is subject to an extensive credit evaluation and any offer that you may receive may be subject to different conditions.
The application process
Are I eligible for funding?
You may apply for an company 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)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and a dedicated company credit specialist will call you to guide you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank records, IRD statement, last 2 years finalised financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we usually offer a response in one hour – as long as you apply within quality business timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statement, we’ll offer the decision within just the span of one company day.
For Larger Business Loans ($100K to $500K) we may be in a position to provide the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Certain deals have been approved within just 24 hours.
The quickest way to apply can be ensure you apply during normal company hours and let us use the advanced bank verification system link to verify your bank information online. If you send us documents from your account statement, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we usually provide an answer within one hour – as long as you apply within standard business hours and you allow us to use the advanced bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statements, we’ll be able to offer an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we may be likely to offer the conditional pre-approval in about six hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this can be faster depending on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The most efficient method can be ensure you apply during normal business hours. You can also allow us to use the sophisticated bank verification link to confirm your bank details online. If you opt to upload the copies of bank accounts, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a particular amount, we take into consideration a range of variables in order to assess how much we can lend you well-being of the business and the level of repayments that your company can afford. The amount you receive from your loan will depend on the specifics for your business.
When you apply for a particular amount, we consider a variety of variables to determine your well-being for your business and the amount of repayments your business is able to afford. The total amount of your loan will depend on the specifics for your company.
Fees & repayments
How much do you charge for a company loan?
When you apply for the company credit, we’ll assess the risk assessment the company and offer you with a tailored offer that includes loan amount, term and the interest rates. The business loan is an upfront priced loan therefore you will be aware of the total amount to be paid, including any interest rates, fees or charges.
What determines the rate that I will be charged?
Interest rates for business loans rates depend on a variety of factors like the amount of money of money borrowed, the business assets the money will be used for and the sector the company is in, how long the business is in operation as well as how long the business has enough cash flow to cover the loan, as well as the general well-being as well as creditworthiness company.
What are the cost?
There aren’t any hidden charges with our company loans. You’ll know exactly how much it is that you need to pay and when, from the day you sign up. There’s not any compounding interest and there are no additional charges (as as you make your payments punctually).
We don’t charge an Application Fee. You can request a credit loan with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with setting up and managing 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% of the amount of loan.
Do I have the option of paying off the loan in advance?
You can decide to repay all of your loan at any point in time.
If you choose to do this please contact our helpful company loan professionals. The specialists will offer you with repayment details along with an early payout estimate. This will be calculated as the total of the principal balance and any accrued interest at the time of early payment, plus 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about the ways we gather data, process, exchange and 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 use industry recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We employ an exceptionally sophisticated bank verification system to immediately verify the bank account details online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an company owner uses an asset they own to get the funds for a loan. The asset may be a personal asset like the family home or it could be a company asset such as a vehicle or piece of equipment.
The vast majority of lending institutions, not just the largest banks, are inclined to guarantee loans against assets. If you are having difficulty paying back the loan, then your assets could be offered for sale by the lender. In essence, it is the process of securing new funding using the worth of the asset you already have.
What do I require security for a company loan?
For loans that exceed $150,000, the requirement for asset security is not required prior to the loan’s access However, we do need a personal guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract) Asset security will never be required. If you take out loans in excess of $150,000 generally there is an individual guarantee and security that is in the form an asset charge.