FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Runaway Bay Small Business Loans
Tell me about the Runaway Bay Small Business Loans
Runaway Bay unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an ordinary business loan?
The application for your Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and have the funds on your account within 24 hours. Traditional company loans are based on an annual interest rate together with additional fees and charges. We offer a company loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company use, including control of cash flow company renovations, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Runaway Bay Business Loans
What is the Larger Runaway Bay Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to have been operating for a minimum of 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funding be utilised?
A large company loan can be used to fund almost all business need, including business improvements, purchasing inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. This can be done in the form of a charge over assets and can include registering this through the PPSR or registering a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature rather than specifying security over an asset. The person signing the ensure is personally liable in the event that the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR grants priority over personal property to be assigned depending on the date that a security interest was registered.
Caveats are legal document filed to offer an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan of $250K or more we can offer an initial pre-approval that will help ease the process. We could be able to get this done without credit checks and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial health questions. It’s in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer you might receive could be based on different terms.
The application process
Do I have the right to receive funds?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in just a few minutes, and an experienced company credit specialist will call you to assist you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, and 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 or more) we usually provide a response in one hour – as long as you apply in quality business hours and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements , we will be able to offer a decision within just 1 business day.
For the Larger Business Loan ($100K to $500K) we may be capable of offer the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved in just 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours. Also, allow us to use our advance bank verification to confirm your bank details online. If you send us documents from your account statements it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) we can often provide a response in one hour, provided you make your application at standard business hours and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements we can offer the decision in as little as an business day.
For the Larger Business Loans ($100K and up) We may be likely to provide you with a conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Some agreements have been approved in 24 hours.
The fastest way is to make sure you apply during standard business hours. You can also allow us to use the modern bank verification to verify your bank information online. If you opt to send us the copies of bank statement, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount, we look at a variety of aspects in order to assess how much we can lend you health for your business as well as the amount of repayments that your company will be able to support. The total amount of your loan will be contingent on the particular circumstances of your company.
When you make an application for a certain amount, we will consider a number of elements to assess your well-being of the company and the level of repayments your business will be able to support. The amount you receive from your loan will be determined by the specifics that are unique to your business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to make an application for one of our business credit, we’ll assess the risk profile that you have for your company and offer you with a tailored offer, including the amount of loan, the term and interest rates. This business loan is an upfront priced loan and you’ll know in advance the total amount due, which includes any interest rates, fees or charges.
What determines the rate that I am charged?
Interest rates for company loans rates depend on several variables like the amount to be that is borrowed, what company assets the money will be used for and the sector the company is operating in, how long the business has been operating as well as how long the company has enough cash flow to support the loan, and also the general well-being as well as creditworthiness business.
What are the charges?
There are no hidden fees for our business loans, and you’ll know exactly how much you need to pay, and at what time, from day one. There’s not any compounding interest and there are no additional charges (as as you make your payments on time).
We do not charge an application fee. You are able to request a credit loan without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated with the setting up and management of 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 loan amount.
Can I pay out the loan earlier?
You can repay the entire amount of the advance loan at any time.
If you are deciding to take this route, please call our helpful business loans professionals. We will offer you with details for repayment as well as an early payout amount. It will be calculated using the total of the principal remaining plus any accrued interest as of the date of early payout, plus 1.5% of the principal balance and any outstanding fees.
How do repayments work?
To make sure you do not miss due dates and also to be in line with your cash flow standard, we provide payments that are either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing the ways we gather, use, exchange and ensure the security of your information is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We employ a highly sophisticated bank verification system to instantly verify your bank account information online so we can provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a business owner borrows from assets they own to secure the loan. The asset could be an individual property, such as the family home or an company property like a truck or piece of equipment.
The majority of the lenders not just the major banks, prefer to secure loans against assets. If you’re struggling to pay back the loan, the asset might be sold by the lender. In essence it’s a way of securing new funding taking advantage of the value of what you already have.
Do I require security for an company loan?
For loans that exceed $150,000, it is not necessary to secure assets upfront to access the money but we require a personal guarantee. need a personal guarantee. In the event that you fulfill your loan obligations (as detailed in the loan contract), asset security is not needed. If you take out loans in excess of $150K generally, there is a personal ensure and security is provided in the form of the charge of assets.