FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Thorndon Small Business Loans
Let me know more about Thorndon Small Business Loans
Thorndon unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from an traditional business loan?
You can apply for this Small Business Loan in under 10 minutes by phone. You will receive a same day response and the money could be available in just 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. We offer a company loan is an upfront priced loan which means you be aware in advance of the total amount due, which includes the interest, fees and charges. Then, it is divided into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business use, including managing cash flows, business remodels and marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal use.
Concerning Larger Thorndon Business Loans
What is the Larger Thorndon Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been in operation for at least 3 years with an annual turnover of at least $700,000. 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 minimum 12 months of continuous trading.
What can the funding be used for?
A Larger Business Loan is a great option for almost any business purpose including business remodeling, buying inventory or new equipment or as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It is usually in the form of a charge against assets and can include registration through the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is generally in nature rather than stipulating the security for a particular asset. The person who signs the ensure is personally responsible if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR grants preference over private property granted in accordance with the date on which a security interest that is registered.
Caveats are legal document filed to offer the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan of more than $250,000 we can offer an initial pre-approval in order to ease the process. We could be able to get this done without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health questions. It is not an offer or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you are offered could be based on different conditions.
The application process
Do I have the right to receive funds?
You can apply for an business 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)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in just a few minutes, and an experienced company lending specialist will be in touch to guide you.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details of the application, including credit consent twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour – as long as you submit your request within standard business timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statements , we are able to offer a decision within just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be able to offer you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this can be quicker based on the particular circumstances of each application. Certain agreements have been approved in 24 hours.
The quickest way to apply can be make sure you apply during normal business hours. Also, allow us to use our advanced bank verification system to instantly verify your bank account information online. If you send us copies of your bank statement, it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) We can usually offer an answer in just one hour if you submit your request during normal business timings and let us use 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 an answer within 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be capable of offer you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Certain offers have been approved in 24 hours.
The fastest method can be make sure you apply during standard business hours and permit us to use the advance bank verification to instantly confirm your bank details online. If you choose to send us the copies of bank statements, it will take a little longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a specific amount we consider a variety of aspects that determine what is the health that is your company and the extent of repayments your business will be able to support. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
When you make an application for a particular amount, we look at a range of aspects to assess how much we can lend you such as well-being for your business as well as the amount of the repayments your company is able to afford. The amount you receive from the loan will be determined by the particulars the business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for business loans with us business financing, we’ll assess the risk profile for your company and offer an individualised offer including loan amount, term and interest rates. It is a business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What determines the amount I am charged?
Business loan interest rates differ based on various factors including the amount borrowed, the company assets the money will be used for in addition to the industry that the business operates in, the long the business is in operation and whether the company has enough cash flow to fund the loan, and the general well-being and creditworthiness of the company.
What are the fees?
There are no hidden costs with our company loans. You’ll be aware of the amount you’ll be required to pay and when, starting from the first day. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments on time).
We don’t charge an application fee. You can get a cash loan no cost upfront or the obligation to take action.
The Origination Fee is the cost associated with establishing 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 earlier?
You can choose to repay the total amount of your advance loan at any time.
If you are deciding to take this route, please speak to our friendly business loans specialists. We will offer you with details on repayment and an early payout figure. This will be calculated as the sum of the principal amount remaining and any accrued interest at the time of the early payout plus 1.5% of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing payments and to work with your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing how we collect information, use it, and exchange it, as well as secure your information, is of huge importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We utilise a sophisticated bank verification system to instantly verify your bank account information online, allowing us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the business owner borrows from an asset they own to get a loan. The asset can be either an asset belonging to the personal, like the family home, or a business asset such as a truck or other piece of machinery.
The majority of lenders, not just the major banks, prefer to guarantee loans against an asset. If you have trouble paying back the loan, your asset may be offered for sale by the lender. In essence it is means of securing new funding using the worth of the asset you already own.
Should I require security for an business loan?
For loans up to $150,000 there is no requirement for asset security upfront to access the money but we do need an individual guarantee. As long as you follow the loan terms (as specified in your loan contract document), asset security is not required. If you take out loans in excess of $150,000 typically, you will need an individual ensure and security is provided in the form of the charge of assets.