FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Timberlea Small Business Loans
Let me know how you are able to avail the Timberlea Small Business Loans
Timberlea unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
You can apply for your Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and the money could be on your account within 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. The company loan is a loan that is priced upfront therefore you’ll be aware of the total amount payable including any fees, charges or charges. This is then divided into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business reason, such as control of cash flow business remodeling, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal reasons.
Concerning Larger Timberlea Business Loans
What is the Larger Timberlea Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to have been operating for a minimum of 3 years, and have an annual income of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can the funds be used for?
A Larger Business Loan is a great option for almost all company purpose including company renovations, to purchase inventory or new equipment as well as for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This can be done in the form of a charge on assets, which could also include the registration of this with the PPSR or registering a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally based rather than defining the security of a specific asset. The person signing the ensure is personally liable in the event that the company creditor 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 lists security interests that are granted to individuals who own personal property (including goods or assets). The PPSR grants priority over personal property to be assigned depending on the date that a security interest was registered.
The caveat can be described as a formal document lodged to offer the public notice of a 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 $250K it’s possible to offer an initial pre-approval in order to make the process. We could be able to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial well-being checks. It’s not an offer or guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer you may receive may be on different terms.
Do I have the right to receive funds?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own 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 or $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in few minutes and an experienced company credit 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) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we typically provide a response in one hour, provided you submit your request in standard business time and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statements we can offer the decision in as little as 1 business day.
For Larger Business Loans ($100K to $500K) we could be capable of offer you with a conditional pre-approval within about six hours. Once you have signed the 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 agreements have been approved in just 24 hours.
The quickest way to apply would be to make sure you apply during standard business hours, and let us use the advance bank verification link to instantly check your bank’s information online. If you decide to send us the copies of bank accounts, it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we usually offer an answer within one hour if you make your application at standard business timings and you allow us to use the bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statements we can offer an answer within one business day.
For Larger Business Loans ($100K to $500K) we might be able to offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some agreements have been approved within 24 hours.
The most effective method would be to ensure you apply during standard business hours and let us use the modern bank verification link to instantly check your bank’s information online. If you send us the copies of bank statement, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a certain amount, we will consider a number of elements for determining how much we can lend you health that is your company as well as the amount of the repayments your company is able to afford. The amount you receive from your loan will depend on the specific circumstances the company.
When you make an application for a certain amount, we take into consideration a variety of aspects to assess the health for your business and the level of the repayments your company is able to afford. The amount you receive from the loan will be determined by the particulars that are unique to your company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for the company loans, we will assess the risk profile of your company and provide you with a customised offer that includes the loan amount, the terms and the interest rates. A company loan is a loan that is priced upfront so you will know in advance the total amount payable including any charges or interest.
What is the factor that determines the price I pay?
The interest rates on company loans rates differ based on various factors like the amount of money borrowed, the company assets the funds will be used for, the industry the business operates in, the long the business has been operating, what percentage of the company has enough cash flow to cover the loan, as well as the overall well-being and creditworthiness of the business.
What are the fees?
There are no hidden costs for our company loans. You’ll know precisely how much it is that you be required to pay and at what time, from the day you sign up. There’s no compounding interest, and no additional fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You can apply for a loan with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan early?
You may choose to pay back all of your loan in full at any time.
If you do decide to do this please talk to one of our helpful company loan specialists. We will provide you with details on repayment and an early payment figure. The figure will be calculated as the total of the principal balance and accrued interest to the time of early payout and 1.5% of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To ensure that you don’t miss payment dates and to align with your cash flow standard, we provide payments that are either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather data, process, exchange and ensure the security of your information is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and security. We use an advanced bank verification system link to immediately verify your bank account information online so we can offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an company owner utilises an asset they own to get the funding. The asset can be either a personal asset like the family home or a business asset like a truck or piece of equipment.
The vast majority of lenders, including the largest banks, are inclined to make loans secured by an asset. If you’re struggling to pay back the loan, your asset may be offered for sale by the lender. In essence it is an opportunity to secure new financing using the value of what you already have.
Should I need security to get an business loan?
Up to $150K in loans there is no requirement for asset security upfront to access the money however, we require a personal guarantee. need a personal guarantee. As long as you follow your loan commitments (as specified in your loan contract) the security of assets is not needed. For loans of over $150K generally there is an individual ensure and security in the form of the charge of assets.