FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Rosehill Small Business Loans
Let me know how you can avail the Rosehill Small Business Loans
Rosehill unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
Apply for your Small Business Loan in under 10 minutes online or over the phone, receive a same day response and funds may be in your account in 24 hours. Traditional business loans refer to an annual interest rate plus other fees and charges. The company loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including any fees, charges or charges. This is then broken down into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost any company use, including managing cash flows, business improvements, advertising to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal use.
About Larger Rosehill Business Loans
What is the Larger Rosehill Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been in operation for at least 3 years and generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funding for?
A larger company loan can be used to fund almost every company use, including business renovations, purchase of equipment or inventory as well as for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It’s as a result of an charge on assets, and could be registered on the PPSR or making a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is generally based rather than stating security over an asset. The person who signs the guarantee is personally accountable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date a security interest was registered.
The caveat can be described as a formal document that is filed to offer an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250,000 we can offer an initial pre-approval that will help smooth out the process. We may be able to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes you answering some financial well-being questions. This is not an offer or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer you may receive may be based on different terms.
Application process
Are I eligible for funding?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (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. Just fill out the online application within a couple minutes, and an experienced company lending specialist will contact you to guide you.
To be eligible for up to $100,000 you’ll need the right identification documents (valid Driver’s License), a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent twelve months of bank statements, IRD statements as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within one hour – as long as you submit your request in quality business hours and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll provide an answer within an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be able to offer the conditional pre-approval in about six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Some offers have been approved within just 24 hours.
The most efficient method for you to apply is ensure you apply during standard business hours. You can also let us use the advanced bank verification system link to instantly check your bank’s information online. If you choose to send us documents from your account statement, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour if you apply at normal business hours and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements we can provide an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be able to offer you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending upon the circumstances for each application. Certain deals have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours and let us use the modern bank verification link to verify your bank account information online. If you decide to upload duplicates of your banking accounts, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a certain amount, we consider a variety of elements in order to assess what is the health of the company and the extent of repayments that your company can afford. The amount you receive from your loan will be contingent on the particular circumstances for your company.
If you apply for a set amount, we will consider a number of factors to assess the health of your company and the level of repayments your business is able to afford. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
What is the cost for an business loan?
When you make an application for the business loans, we’ll assess the risk assessment of your company and provide you with a customised offer that includes the amount of loan, the term and the interest rates. A business loan is an upfront priced loan and you’ll know in advance the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I am charged?
The interest rates on company loans rates differ based on various variables like the amount to be of money borrowed, the company assets the funds are used to purchase and the sector the business operates in, how long the business is in operation for, how long the company has enough cash flow to pay for the loan, and the general well-being as well as creditworthiness business.
What are the charges?
There are no hidden costs with our company loans, and you’ll know exactly how much you’ll need to pay, and when, right from the day you sign up. There’s no compounding interest, and no additional fees (as long as you are able to make your payments in time).
We do not charge an Application Fee. You are able to request a credit loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this 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 out the loan early?
You may choose to pay back all of your loan early at any time.
If you choose to pursue this option, please call our helpful company lending professionals. We will provide you with the details of your repayment as well as an early payout amount. This will be calculated as the sum of the principal amount remaining plus any accrued interest as of the date of early payout in addition to 1.5 percent of the principal balance as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss repayments and to fit in with your cash flow cycle 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?
Making sure that your information is secure, and being clear about how we collect the information we collect, use, share and safeguard your data, is of huge importance and an integral aspect 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 secure your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We make use of an advanced bank verification system that allows you to immediately verify your bank account information online, allowing us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the business owner uses the assets they have to obtain the loan. The asset can be either an individual asset, such as the family home or an company asset like a truck as well as a piece of machine.
The vast majority of lenders, even the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, your asset may be offered for sale by the lender. In essence it is means of securing new financing making use of the value of what you already have.
Are I need security to secure a company loan?
Up to $150,000 in loans no asset security is required before you are able to access the money However, we require a personal guarantee. require the personal guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract) Asset security will never be required. For loans that exceed $150K, generally there is an individual guarantee and security that is in the form a charge over assets.