FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Richlands Small Business Loans
Tell me what you think of the Richlands Small Business Loans
Richlands unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an traditional company loan?
You can apply for the Small Business Loan in under 10 minutes over the phone, receive an instant response and funds may be in your account within 24 hours. Traditional company loans are based on an annual interest rate plus other fees and charges. We offer a company loan is a loan that is priced upfront therefore you’ll be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into either weekly or daily payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business use, including control of cash flow company renovations, marketing to purchase inventory, new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
Concerning Larger Richlands Business Loans
What is the Larger Richlands Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to have been operating for a minimum of 3 years, and have an annual income of $700K. It is necessary to 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 demonstrate at minimum 12 months of business.
What can the funds be used for?
A larger business loan can be used to fund almost every business reason, such as company improvements, purchasing inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It’s by taking a charge over assets, and could be registered in the PPSR or filing a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally accountable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR permits the priority of personal property assigned depending on the date that a security interest was registered.
A caveat is a legal document lodged to provide the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan of $250K or more we may be able to provide an initial pre-approval to ease the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial well-being questions. This is not an offer of credit or guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you are offered could be based on different conditions.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six 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. Just fill out the online application in just a few minutes, and an experienced company lending specialist will call you to help you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually offer a response in one hour – as long as you make your application in standard company timings and allow us to utilise the bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements we can provide an answer in just the span of one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be capable of provide you with pre-approval conditional to your application within 6 hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some offers have been approved in just 24 hours.
The fastest way for you to apply is make sure you apply during standard company hours and let us use the modern bank verification to instantly confirm your bank details online. If you choose to send us copies of your bank statements , it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within one hour if you apply at standard business times and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statements, we are able to offer an answer within the span of one business day.
For the Larger Business Loans ($100K or more) We may be likely to provide you with conditional pre-approval in about 6 hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Some offers have been approved within 24 hours.
The most efficient method can be make sure you apply during standard business hours. You can also let us use the modern bank verification to instantly verify your bank account information online. If you upload documents from your account statement, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a particular amount, we take into consideration a range of elements in order to assess how much we can lend you well-being of your company and the amount of repayments your company can afford. The amount you receive from the loan will be determined by the specific circumstances the business.
When you submit an application for a certain amount, we consider a variety of elements to assess the health that is your company and the extent of the repayments your business can support. The amount you receive from your loan will depend on the specifics that are unique to your business.
Fees & repayments
How much do you charge for a company loan?
If you decide to apply for our company loan, we will assess the risk profile of your company and offer you with a tailored offer including loan amount, term and the interest rates. It is a company loan is an upfront-priced loan so you will be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I am charged?
The interest rates on company loans rates vary due to variables like the amount to be borrowed, the business assets the money are used to purchase as well as the field the company operates in, how long the business is in operation for, what percentage of the business has enough cash flow to pay for the loan, as well as the general well-being and creditworthiness of the company.
What are the fees?
There aren’t any hidden costs with our company loans, and you’ll know precisely what you’ll be required to pay, and when, from the first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to request a credit loan with with no upfront cost 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 decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay off the loan early?
You can repay all of your loan early at any time.
If you choose to pursue this option, please speak to our friendly business credit specialists. The experts will provide you with details on repayment along with an early payout estimate. It will be calculated using the sum of the principal balance plus any accrued interest as of the time of the early payout plus 1.5% of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing due dates and also to be in line with your cash flow general, we provide repayments either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear how we collect, use, exchange and safeguard your data, is vital and a vital part 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 as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We make use of an advanced banking verification system to instantly verify the bank account details online to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner uses the assets they have to obtain the funding. The asset may be a personal asset like the family home, or an company asset like a truck as well as a piece of machine.
The majority of lending institutions, not just the banks with the biggest size, prefer to secure loans against assets. If you’re struggling to pay back the loan, then your asset may be sold by the lender. In essence, it is means of securing additional financing using the value of what you already own.
Are I require security for a business loan?
For loans that exceed $150,000, no asset security is required before you can access the money however, we do need the personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract document) and you are able to meet your obligations, asset security will never be required. For loans over $150,000 generally, you are able to get a personal ensure and security in the form a charge over assets.