FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Rosehill Small Business Loans
Tell me about the Rosehill Small Business Loans
Rosehill unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from the traditional business loan?
You can apply to your Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and have the funds in your account within 24 hours. Traditional business loans refer to an annual interest rate as well as other fees and charges. We offer a company loan is an upfront priced loan so you will know in advance the total amount due, which includes the interest, fees and charges. This is then broken down into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business need, such as cash flow management, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
About Larger Rosehill Business Loans
What is the Larger Rosehill Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How’s 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?
To be eligible for a loan in this amount, your business needs to have been in operation for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be used for?
A large company loan can be used for almost any business purpose including company improvements, purchasing new equipment or inventory as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This can be done in the form of a charge on assets, which could also include the registration of this on the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is general in nature rather than specifying the security of a specific asset. The person who is signing the guarantee is personally accountable if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR gives the priority of personal property assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document that is filed to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger business loans of $250K or more it’s possible to offer a preliminary pre-approval to help smooth out the process. We might be able to do this without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being checks. It is neither an offer nor a guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer you may receive may be on different conditions.
Application process
Do I qualify for funds?
You may apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the 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 easy. Complete the online form within a couple minutes, and a dedicated company credit specialist will be in touch to assist you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application 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 twelve month bank accounts, the IRD statements Last 2 years’ finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within an hour if you make your application in quality business times and permit us to utilise the bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your bank statements we can provide an answer in just 1 business day.
For the Larger Business Loan ($100K up to $500,000) we might be able to offer you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Some offers have been approved in 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard company hours, and let us use the advanced bank verification system to instantly verify your bank account information online. If you send us copies of your bank statements , it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we usually offer an answer in just one hour, provided you make your application during standard business hours and you allow us to use the bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statement, we’ll offer a decision in just 1 business day.
For Larger Business Loans ($100K or more) We may be in a position to offer you with conditional pre-approval within six hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain deals have been approved within 24 hours.
The quickest method is to make sure you apply during standard business hours and permit us to use the advanced bank verification system to verify your bank information online. If you choose to upload copies of your bank accounts, it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of aspects for determining what is the well-being of your business and the amount of payments your business can afford. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your business.
When you apply for a certain amount, we look at a range of aspects to assess your well-being that is your business and the level of repayments your company can support. The amount you receive from your loan will depend on the particular circumstances for your company.
Fees & repayments
What is the cost for an business loan?
When you apply for our company credit, we will assess the risk assessment the company and provide you with a tailored offer that includes the amount of loan, the term and the interest rates. The business loan is an upfront cost loan and you’ll be aware of the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I am charged?
Interest rates for company loans rates depend on several variables like the amount to be borrowed, the company assets the money will be used for as well as the field the company operates in, how long the company has been running as well as whether the business has sufficient cash flow to fund the loan, as well as the overall well-being and creditworthiness of the business.
What are the charges?
There are no hidden costs for our company loans. You’ll be aware of the amount you’ll be required to pay and at what time, from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You may choose to pay back the total amount of your loan early at any time.
If you do decide to do this please call our helpful company credit professionals. We will provide you with details for repayment and an early payout figure. The figure will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payment and 1.5% of the remaining principal plus any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about how we collect data, process, exchange and protect your information, is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We use an advanced bank verification system to instantly verify your bank account details online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner borrows from an asset they own to make the loan. The asset could be an individual property, such as the family home, or an company asset like a truck or piece of equipment.
The vast majority of lending institutions, not just the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, then your assets could be transferred to the lender. In essence, it’s a way of securing additional financing using the value of what you already have.
What do I require security for an company loan?
Up to $150,000 in loans the requirement for asset security is not required prior to the loan’s access however, we do need the personal guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract document), asset security will never be required. For loans that exceed $150,000, generally there is personal guarantee and security that is in the form charges on assets.