FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Tawa Small Business Loans
Tell me how you are able to avail the Tawa Small Business Loans
Tawa unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from an traditional company loan?
Apply to the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional business loans reference an annual interest rate along with other charges and fees. We offer a business loan is a loan that is priced upfront and you’ll know ahead of time the total amount payable including any interest, fees or charges. This is then broken down into either weekly or daily payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business use, including managing cash flows, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal reasons.
Concerning Larger Tawa Business Loans
What is the Larger Tawa Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly to work with you cashflow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to be operating for at least three years and have an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A large business loan can be used for almost every company need, including business improvements, purchasing inventory or new equipment 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 requires security?
Asset security is required for accessing funds over $150,000. It is usually by taking a charge over assets, and may include the registration of this through the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is general in nature, rather than specifying security over an asset. The person who is signing the ensure is personally liable in the event that the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a security interest has been registered.
Caveats are legal document lodged to offer the legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger company loans that exceeds $250,000 we may be able to provide an initial pre-approval to ease the process. We could 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 evaluation that involves answering a couple of financial health checks. It’s neither an offer nor a guarantee of finance. A conditional approval is subject a full credit assessment and any offer you are offered could be based on different terms.
Do I qualify for funds?
You may apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in few minutes and an experienced business expert in lending will contact you to help you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $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, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K or more) we usually offer an answer within an hour if you submit your request at quality business time and permit us to utilise the bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements we can provide a decision within 1 business day.
For the Larger Business Loan ($100K to $500K) we could be able to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved in the space of 24 hours.
The quickest way to apply is to ensure you apply during standard company hours and allow us to use the advanced bank verification system to instantly verify your bank account information online. If you decide to upload duplicates of your banking statements , it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour – as long as you apply within standard business hours 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 banking statement, we’ll provide a decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be able to offer you with a conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Some agreements have been approved within less than 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours, and allow us to use our sophisticated bank verification link to instantly confirm your bank details online. If you decide to upload documents from your account statements it will take a little longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a specific amount we will consider a number of aspects for determining your health for your business and the level of repayments your business is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your business.
When you submit an application for a particular amount, we consider a variety of aspects to assess how much we can lend you such as health of your company and the extent of payments your company can afford. The total amount of the loan will be determined by the specifics of your business.
Fees & repayments
How much should you charge for a business loan?
When you make an application for business loans with us company loans, we’ll assess the risk profile the company and provide an individualised offer that includes the amount of the loan, the duration and interest rates. A company loan is a loan that is priced upfront so you will be aware of the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I’m charged?
Interest rates for business loans rates differ based on various factors such as the amount that is borrowed, the company assets the funds will be used for in addition to the industry that the company operates in, the long the business has been in operation and how long the business has enough cash flow to pay for the loan, as well as the overall well-being as well as creditworthiness business.
What are the costs?
There are no hidden costs with our company loans, and you’ll know precisely what you be required to pay and at what time, from the day you sign up. There’s no compounding interest, and there are no additional charges (as as you make your payments on time).
We don’t charge an application fee. You are able to get a cash loan with with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan early?
You can repay the entire amount of the loan early at any time.
If you are deciding to take this route, please contact our helpful company lending experts. The professionals will provide you with repayment details along with an early payout estimate. This will be calculated as the sum of the principal balance and accrued interest to the time of early payout in addition to 1.5% of the principal amount remaining and any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss payment dates and to align your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and being transparent about how we collect the information we collect, use, share and ensure the security of your information 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 employ industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We utilise a sophisticated bank verification system link to instantly verify your bank account information online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term “asset-based” refers to borrowing where an company owner borrows from assets they own to obtain the funding. The asset can be either an individual property, such as the family home or it could be a company asset such as a truck or other piece of machinery.
The majority of lenders, not just the big banks, tend to secure loans against assets. If you have trouble paying back the loan, the asset might be transferred to the lender. In essence it’s means of securing new funding taking advantage of the value of what you already have.
What do I require security to secure a business loan?
For loans of up to $150,000, it is not necessary to secure assets prior to the loan’s access however, we do need a personal guarantee. In the event that you fulfill the terms of your loan (as detailed in your loan contract document) Asset security is not needed. For loans of over $150,000 generally there is a personal guarantee and security in the form charges on assets.