FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Te Atatu South Small Business Loans
Let me know more about Te Atatu South Small Business Loans
Te Atatu South unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from an traditional business loan?
The application for this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and funds may be in your account within 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. The company loan is a loan that is priced upfront so you will know ahead of time the total amount due, which includes the interest, fees and charges. Then, it is broken down into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any company purpose including the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal use.
About the Larger Te Atatu South Business Loans
What is the Larger Te Atatu South Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to be operating for a minimum of 3 years with an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used for almost any business need, including company remodeling, buying new equipment or inventory for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This is by taking a charge on assets and can include the registration of this with the PPSR or registering as a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is generally in nature rather than stating the security of a specific asset. The person signing the guarantee is personally accountable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR gives priority over personal property to be granted according to the date a security interest has been registered.
The caveat can be described as a formal document lodged to provide the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help smooth out the process. We might be able to make this decision without a credit check and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health questions. It’s not an offer or guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you receive could be subject to different terms.
Are I eligible for funding?
You are eligible to apply for an company 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)
- can demonstrate at least 6 months worth of trade (for you to qualify for 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 quick and easy. Just complete the online application in few minutes and an experienced business lending specialist will call you to assist you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll also require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent twelve months bank statement, an IRD statements and the last two years’ finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) We can usually provide a response in one hour if you apply at quality company hours and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can offer the decision in as little as an company day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with a conditional pre-approval within 6 hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the particular circumstances of each application. Certain deals have been approved in the space of 24 hours.
The most efficient method would be to ensure you apply during standard business hours and allow us to use our modern bank verification link to verify your bank account information online. If you opt to upload copies of your bank statements , it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within an hour, provided you make your application at standard business hours and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you want to submit copies of your bank statements, we are able to provide a decision within an business day.
For Larger Business Loans ($100K to $500K) we might be in a position to offer you with pre-approval conditional to your application within six hours. Once 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 specifics of each application. Some agreements have been approved within less than 24 hours.
The most efficient method can be make sure you apply during standard business hours. Also, let us use the modern bank verification to instantly confirm your bank details online. If you send us documents from your account statement, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we consider a variety of elements for determining how much we can lend you well-being that is your business and the amount of the repayments your company is able to afford. The total amount of your loan will depend on the specific circumstances that are unique to your company.
If you apply for a specific amount we will consider a number of variables to determine the health for your business and the extent of the repayments your business can afford. The amount you receive from your loan will be determined by the specific circumstances the company.
Fees & repayments
How do you charge for a business loan?
If you decide to make an application for one of our business loan, we will assess the risk profile that you have for your company and offer an individualised offer that includes the amount of the loan, the duration and interest rates. The business loan is an upfront-priced loan so you will know the exact amount due, which includes any charges or interest.
What determines the rate that I will be charged?
Business loan interest rates differ based on various factors including the amount borrowed, the company assets the funds will be used for, the industry the business operates in, how long the business has been in operation, how long the business has enough cash flow to support the loan, as well as the overall well-being or financial standing of the business.
What are the fees?
There are no hidden costs for our business loans, and you’ll know exactly how much it is that you need to pay and at what time, from the day you sign up. There’s no compounding and no additional fees (as as you make your payments punctually).
We do not charge an Application Fee. You can make an application for loans absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan in advance?
You may choose to pay back the entire amount of your loan early at any time.
If you do decide to do this please contact our helpful business loans experts. We will provide you with the details of your repayment as well as an early payout amount. This will be calculated as the total of the remaining principal amount and the accrued interest up to the time of the early payout in addition to 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being upfront about how we collect, use, exchange and secure your information, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We utilise a sophisticated bank verification system to immediately verify your bank account details online to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term “asset-based” refers to borrowing where an business owner utilises an asset they own to make the funding. The asset could be an asset belonging to the personal, like the family home or a company asset like a truck as well as a piece of machine.
The majority of lenders, not just the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan then your assets could be sold by the lender. In essence it’s the process of securing additional financing using the worth of the asset you already own.
Are I need security to secure an company loan?
For loans of up to $150,000, there is no requirement for asset security before you are able to access the money however, we do require a personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract), asset security will never be required. If you take out loans in excess of $150,000 typically, you will need personal ensure and security in the form of charges on assets.