FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Titahi Bay Small Business Loans
Let me know about the Titahi Bay Small Business Loans
Titahi Bay unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from a traditional business loan?
The application for your Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and funds may be in your account within 24 hours. Traditional company loans reference an annual interest rate as well as other fees and charges. We offer a 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, interest or charges. Then, it is divided into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business reason, such as the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, for general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Titahi Bay Business Loans
What is the Larger Titahi Bay Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to have been operating for a minimum of 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funding be used for?
A large business loan can be used to fund almost all company purpose including company remodeling, buying equipment or inventory 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 funding of more than $150,000. This is by taking a charge against assets, and may be registered with the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally in nature rather than stipulating security over an asset. The person who signs the ensure is personally accountable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR gives priority over personal property to be granted according to the date a registration of a security interest.
A caveat is a legal document that is filed to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans of more than $250K we can offer an initial pre-approval that will help ease the process. We might be able to make this decision without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial well-being checks. This is neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you are offered could have different terms.
Do I have the right to receive funds?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just complete the online application in just a few minutes, and an experienced business expert in lending will contact you to guide you through the process.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, 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 you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour, provided you apply within standard company time and you allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statement, we’ll provide an answer within the span of one company day.
For Larger Business Loans ($100K up to $500,000) we may be in a position to offer the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be quicker based on the specifics of each application. Some agreements have been approved within the space of 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours. You can also permit us to use the advance bank verification link to instantly verify your bank information online. If you upload the copies of bank accounts, it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we typically provide a response in one hour if you submit your request within normal business times and let us utilise the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements, we’ll be able to provide an answer in just the span of one business day.
For Larger Business Loans ($100K or more) we could be in a position to provide the conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be faster depending upon the circumstances for each application. Certain agreements have been approved in the space of 24 hours.
The fastest method would be to make sure you apply during standard business hours and let us use the advance bank verification to instantly check your bank’s information online. If you decide to send us the copies of bank statements it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a specific amount we will consider a number of factors that determine what is the health of your company as well as the amount of repayments your company can support. The amount you receive from your loan will be contingent on the specific circumstances the company.
When you make an application for a certain amount, we take into consideration a variety of elements to determine the well-being for your business and the level of repayments your business can afford. The total amount of your loan will be determined by the specific circumstances of your company.
Fees & repayments
How do you charge for a company loan?
If you decide to request one of our company credit, we will assess the risk profile the business and offer you with a customised offer, including the amount of loan, the term and the interest rates. It is a company loan is an upfront cost loan and you’ll know the exact amount payable including any interest rates, fees or charges.
What determines the rate that I will be charged?
Business loan interest rates vary due to factors such as the amount that is borrowed, what company assets the funds are used to purchase in addition to the industry that the business is operating in, how long the company is in operation for, what percentage of the company has enough cash flow to pay for the loan, and general well-being and creditworthiness of the company.
What are the fees?
There are no hidden costs for our company loans, and you’ll be aware of the amount it is that you need to pay, and when, right from day one. There’s no compounding interest, and no extra fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan with without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can repay all of your loan at any point in time.
If you decide to take this route, please call our helpful company loans specialists. They will provide you with repayment details along with an early payout estimate. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the date of early payout and 1.5 percent of the principal amount remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow general, we provide payments that are either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing how we collect data, process, exchange and safeguard your data, is of huge importance 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 protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to customer security and security. We employ an exceptionally sophisticated banking verification system to immediately confirm your bank account information online. This allows us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an company owner borrows from an asset they own to secure the funds for a loan. The asset can be an individual property, such as the family home, or an company asset such as a truck as well as a piece of machine.
The vast majority of lending institutions, including the largest banks, are inclined to guarantee loans against an asset. If you’re struggling to pay back the loan, then the asset could be offered for sale by the lender. In essence it’s an opportunity to secure new funding taking advantage of the value of what you already have.
Should I require security to get a company loan?
For loans that exceed $150,000, the requirement for asset security is not required before you are able to access the money however, we do need a personal guarantee. So long as you comply with the loan terms (as stipulated in the loan contract), asset security will never be required. For loans over $150K generally, you can get the option of a personal ensure and security in the form charges on assets.