FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Rongotai Small Business Loans
Tell me about the Rongotai Small Business Loans
Rongotai unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from the traditional business loan?
The application for this Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and funds may be on your account within 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. This business loan is a cash-based loan therefore you’ll know in advance the amount you will have to pay, including any fees, interest or charges. This is then broken down into either a daily or weekly installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business purpose including cash flow management, business renovations, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
About larger Rongotai Business Loans
What is the Larger Rongotai Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to be operating for at least three years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funds be utilised?
A Larger Business Loan can be used for nearly any company need, including business remodeling, buying equipment or inventory, as 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 necessary to access funding over $150,000. This is by way of charge on assets, which could also include registration with the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is general in nature rather than defining the security of a specific asset. The person signing the guarantee is personally accountable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR allows the priority of personal property granted according to the date a registration of a security interest.
An affidavit is an official form of document to provide the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan that exceeds $250K we may be able to provide a preliminary pre-approval to help make the process. We might be able to do this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health questions. It’s not an offer or guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer you are offered could have different conditions.
The 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 at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a couple minutes, and an experienced business lending specialist will be in touch to guide you through the process.
To apply for up to $100,000 you’ll require proof of identity (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details for application including credit consent and 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour if you submit your request in standard company time and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statement, we’ll provide a decision within just one company day.
For the Larger Business Loan ($100K up to $500,000) we might be capable of provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The fastest way is to make sure you apply during standard business hours, and allow us to use our modern bank verification link to verify your bank account information online. If you upload duplicates of your banking statement, it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) We can usually offer an answer in just one hour if you apply at normal business timings and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements, we are able to provide an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of provide the conditional pre-approval 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 can be faster depending upon the circumstances for each application. Certain deals have been approved in just 24 hours.
The fastest method would be to make sure you apply during standard business hours and let us use the sophisticated bank verification link to instantly verify your bank information online. If you opt to upload copies of your bank statements it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of variables that determine how much we can lend you health that is your company and the amount of repayments that your business will be able to support. The total amount of your loan will be contingent on the specific circumstances of your business.
When you make an application for a set amount, we will consider a number of factors to assess how much we can lend you such as health of your company as well as the amount of the repayments your company can afford. The amount you receive from your loan will be contingent on the particulars the business.
Fees & repayments
How much should you charge for the cost of a business loan?
When you request the company credit, we will assess the risk assessment that you have for your business and provide you with a customised offer including the amount of loan, the term and the interest rates. This 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 determines the amount I pay?
The interest rates on business loans rates differ based on various variables like the amount to be that is borrowed, what company assets the money are used to purchase as well as the field the business is in, how long the company has been running for, in the event that the business has enough cash flow to pay for the loan, and overall well-being or creditworthiness of the company.
What are the fees?
There aren’t any hidden costs for our company loans. You’ll know precisely what you need to pay, and at what time, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to apply for a loan with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with establishing 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 percentage of the amount of loan.
Can I repay the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you decide to do this please call our helpful business credit specialists. They’ll provide you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of the early payout in addition to 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
To ensure you do not miss repayments and to fit in with your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing the ways we gather information, use it, and exchange it, as well as ensure the security of your information is vital 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 techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to customer security and security. We use an advanced bank verification system to instantly verify your bank account details online so we can provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner uses an asset they own to secure a loan. The asset can be a personal asset like the family home or it could be a business asset such as a truck or piece or equipment.
The majority of banks, even the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, then your assets could be taken over by the lender. In essence, it is the process of securing new financing by using the worth of the asset you already own.
Do I require security to get a business loan?
Up to $150,000 in loans there is no requirement for asset security prior to the loan’s access but 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 is not needed. For loans over $150,000 typically, you will need an individual guarantee and security in the form of an asset charge.