FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Reservoir Small Business Loans
Tell me what you think of the Reservoir Small Business Loans
Reservoir unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and have the funds available in just 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. We offer a business loan is an upfront priced loan so you will know in advance the total amount to be paid, including any fees, charges or charges. This is then broken down into weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company reason, such as control of cash flow company renovations, marketing, to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Reservoir Business Loans
What is the Larger Reservoir Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to be trading for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly every business use, including company renovations, to purchase equipment or inventory as well as for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This is in the form of a charge over assets, and could include registering this on the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is generally based rather than stating security over an asset. The person signing the guarantee is personally liable in the event that the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR gives preference over private property assigned according to the date the security interest that is registered.
Caveats are legal document lodged to provide notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger company loans that exceeds $250K we may be able to provide an initial pre-approval in order to ease the process. It is possible to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial health checks. It is neither an offer nor a guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you might receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Just complete the online application in few minutes and a dedicated business loan 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 as well as at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent, 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we typically offer a response in one hour – as long as you apply at quality business time and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements , we’ll be able to offer a decision in as little as an business day.
For the Larger Business Loan ($100K to $500K) we could be likely to offer the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Some transactions have received approval in the space of 24 hours.
The quickest way to apply would be to make sure you apply during standard company hours. You can also allow us to use the modern bank verification link to check your bank’s information online. If you upload duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer within an hour, provided you make your application in normal business times and permit us to utilise 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 provide the decision within the span of one business day.
For Larger Business Loans ($100K to $500K) We may be likely to offer the conditional pre-approval in about 6 hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Some deals have been approved within just 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours, and allow us to use our sophisticated bank verification link to verify your bank account information online. If you opt to send us documents from your account statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of factors that determine your health of your company and the amount of the repayments your business can afford. The amount you receive from the loan will be determined by the specific circumstances for your company.
If you apply for a particular amount, we take into consideration a variety of factors to assess your well-being that is your company and the level of payments your business is able to afford. The amount you receive from your loan will be contingent on the particulars of your company.
Fees & repayments
How much should you charge for an company loan?
If you decide to request one of our business credit, we will assess the risk assessment that you have for your business and provide you with a customised offer that includes the amount of the loan, the duration and the interest rates. A company loan is an upfront cost loan therefore you will know in advance the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I’m charged?
Interest rates for company loans rates differ based on various variables like the amount to be borrowed, what business assets the funds are used to purchase in addition to the industry that the business is in, how long the business is in operation for, how long the company has sufficient cash flow to support the loan, as well as the overall well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden costs with our business loans. You’ll know precisely how much you be required to pay, and at what time, from the first day. There’s no compounding and there are no additional charges (as long as you make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You can decide to repay all of your advance loan at any time.
If you decide to pursue this option, please speak to our friendly business loan professionals. We will offer you with details for repayment along with an early payout estimate. This will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payment, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To ensure that you don’t miss payments and to work your cash flow schedule, we provide payments that are either daily or weekly. They are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear the ways we gather the information we collect, use, share and protect your information, is crucial 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 techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We make use of an advanced bank verification system link to instantly verify your bank account details online to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from the assets they have to get the funding. The asset can be either an asset belonging to the personal, like the family home or a business asset like a truck as well as a piece of machine.
The majority of lenders, including the banks with the biggest size, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, the asset might be taken over by the lender. In essence, it is the process of securing new financing by making use of the value of what you already own.
Should I require security to get a company loan?
For loans up to $150,000 it is not necessary to secure assets before you can access the money however, we do require the personal guarantee. If you adhere to your loan obligations (as specified in the loan contract) the security of assets is not required. If you take out loans in excess of $150K typically, you will need the option of a personal guarantee and security that is in the form a charge over assets.