FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Reedy Creek Small Business Loans
Let me know more about Reedy Creek Small Business Loans
Reedy Creek unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an ordinary business loan?
The application for your Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and the funds could be available in just 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. The business loan is a pre-paid loan therefore you’ll be aware in advance of the amount you will have to pay, including the interest, fees and charges. This is then broken down into weekly or daily payment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company purpose including the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
About Larger Reedy Creek Business Loans
What is the Larger Reedy Creek Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to have been operating for at least three years and generate an annual revenue of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan can be used for nearly any business purpose including company renovations, purchase of equipment or inventory or as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It’s in the form of a charge against assets, which could also include registration with the PPSR or registering as a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally based rather than stipulating security over a particular asset. The person who is signing the ensure is personally liable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR allows priority over personal property to be assigned depending on the date that a security interest has been registered.
Caveats are legal document that is filed to offer an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for a Larger Business Loan of $250,000 or more it’s possible to offer an initial pre-approval that will help smooth out the process. We could be able to make this decision without a credit check, and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial well-being questions. This is not an offer of credit or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could have different conditions.
The application process
Are I eligible for funding?
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’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application in few minutes and an experienced business lending specialist will be in touch to guide you.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s License), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically provide an answer within an hour, provided you apply within standard company timings and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statement, we’ll offer an answer in just one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be likely to provide the conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Certain deals have been approved within 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard company hours. Also, permit us to use the modern bank verification link to confirm your bank details online. If you choose to send us the copies of bank statement, it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour if you submit your request at standard business time and you allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements, we’ll be able to provide an answer in just an business day.
For Larger Business Loans ($100K or more) we may be able to provide you with pre-approval conditional to your application within about six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for 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 way for you to apply is make sure you apply during normal business hours. You can also let us use the advanced bank verification system to instantly check your bank’s information online. If you opt to upload the copies of bank statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount we consider a variety of aspects for determining how much we can lend you health of the business and the extent of repayments your company will be able to support. The total amount of your loan will depend on the specifics the company.
If you apply for a set amount, we take into consideration a variety of aspects to determine how much we can lend you such as health of your company and the amount of payments your business is able to afford. The total amount of your loan will depend on the specific circumstances for your company.
Fees & repayments
How much do you charge for an company loan?
If you decide to apply for the business financing, we will assess the risk profile that you have for your business and offer an individualised offer including the loan amount, the terms and the interest rates. The company loan is a loan that is priced upfront which means you know the exact amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Interest rates for business loans rates differ based on various factors such as the amount that is borrowed, what business assets the funds are used to purchase and the sector the business operates in, how long the business has been in operation as well as how long the company has sufficient cash flow to pay for the loan, as well as the overall well-being as well as creditworthiness business.
What are the fees?
There are no hidden fees with our business loans, and you’ll know precisely what you be required to pay, and when, from the day you sign up. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We do not charge an application fee. You can get a cash loan no cost upfront or commitment to apply.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of the loan early at any time.
If you do decide to take this route, please call our helpful business loan experts. We will provide you with repayment details and an early payment figure. It will be calculated using the total of the principal balance and the accrued interest up to the time of the early payout and 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear how we collect information, use it, and exchange it, as well as protect your information, is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We employ an exceptionally sophisticated bank verification system that allows you to immediately verify your bank account details online so we can provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner borrows from an asset they own to secure the funding. The asset could be an individual asset, such as the family home, or a company asset such as a truck or other piece of machinery.
The vast majority of lending institutions, even the big banks, tend to secure loans against assets. If you’re having trouble paying back the loan, the asset could be transferred to the lender. In essence, it’s the process of securing new funding making use of the value of what you already have.
Are I require security for an company loan?
Up to $150K in loans the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. need the personal guarantee. If you adhere to the terms of your loan (as stated in your loan contract), asset security will never be required. For loans over $150K generally there is the option of a personal ensure and security is provided in the form of charges on assets.