FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Hataitai Small Business Loans
Let me know what you think of the Hataitai Small Business Loans
Hataitai unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
The application to this Small Business Loan in under 10 minutes by phone. You will receive an instant response and funds may be in your account within 24 hours. Traditional company loans are based on an annual interest rate together with additional fees and charges. This company loan is a loan that is priced upfront 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 could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business reason, such as managing cash flows, company remodeling, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger Hataitai Business Loans
What is the Larger Hataitai Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size, your company needs to have been in operation for at least 3 years, and have an annual income of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funds for?
A Larger Business Loan can be used for almost every business reason, such as business improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It is usually as a result of an charge against assets and can include registration with the PPSR or registering a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally based rather than specifying security over a particular asset. The person signing the guarantee is personally accountable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR allows the priority of personal property assigned according to the date the security interest has been registered.
A caveat is a legal document filed to provide the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250,000 we can offer an initial pre-approval to ease the process. It is possible to apply for this without a credit verification and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering some financial well-being checks. This is not an offer of credit or guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer that you may receive may be subject to different conditions.
The application process
Do I qualify for funds?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a few minutes and an experienced business credit specialist will contact you to assist you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s Licence) along with an NZBN/IRD that is valid 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 IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, and interim current financial year financials as well as Aged Payables and Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour – as long as you make your application during standard company times and let us use the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statement, we’ll offer the decision within just one company day.
For the Larger Business Loan ($100K to $500K) we may be likely to provide you with a conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain offers have been approved within 24 hours.
The most effective method for you to apply is ensure you apply during standard business hours. You can also allow us to use our advance bank verification link to check your bank’s information online. If you opt to upload the copies of bank statements , it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we usually provide an answer in just one hour if you apply at normal business times and allow us to use the bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements, we are able to provide an answer within an business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to offer you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within 24 hours.
The fastest method would be to ensure you apply during normal business hours. Also, allow us to use the advanced bank verification system link to instantly confirm your bank details online. If you decide to upload the copies of bank statements it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a specific amount we consider a variety of variables in order to assess the health of the business as well as the amount of repayments that your company can afford. The total amount of your loan will be contingent on the specific circumstances of your company.
If you apply for a particular amount, we consider a variety of elements to determine your health that is your company as well as the amount of repayments that your business can support. The amount you receive from your loan will be determined by the particular circumstances that are unique to your business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to apply for the business financing, we will assess the risk assessment the business and provide an individualised offer, including the loan amount, the terms and interest rates. The business loan is an upfront-priced loan and you’ll know the exact amount to be paid, including any costs, fees, or interest rates.
What determines the amount I will be charged?
Interest rates for company loans rates differ based on various factors including the amount that is borrowed, what company assets the funds are used to purchase and the sector the business operates in, how long the business has been operating and how long the business has sufficient cash flow to support the loan, and the general well-being or financial standing of the company.
What are the cost?
There are no hidden fees with our business loans. You’ll know exactly how much you be required to pay and when, starting from the day you sign up. There’s not any compounding interest and no extra fees (as long as you are able to make your payments on time).
We do not charge an application fee. You can request a credit loan with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can repay the entire amount of the loan at any point in time.
If you are deciding to do this please speak to our friendly company loans specialists. They will provide you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the principal balance and accrued interest to the date of early payout, plus 1.5% of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To make sure you do not miss payments and to work your cash flow cycle we provide payments that are either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect data, process, exchange and protect your information, is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We utilise a sophisticated bank verification system link to immediately verify your bank account details online. This allows us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an company owner uses an asset that they own to secure the loan. The asset could be an individual property, such as the family home, or a company property like a truck or piece of equipment.
The majority of banks, including the banks with the biggest size, prefer to secure loans against assets. If you are having difficulty paying back the loan, your assets could be taken over by the lender. In essence it is an opportunity to secure new financing making use of the value of what you already own.
Do I need security for an business loan?
Up to $150K in loans the requirement for asset security is not required in advance to gain access to the funds, however we do require an individual guarantee. So long as you comply with your loan obligations (as specified in the loan contract) the security of assets is not required. For loans over $150K typically, you will need personal ensure and security that is in the form an asset charge.