FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Totara Heights Small Business Loans
Let me know about the Totara Heights Small Business Loans
Totara Heights unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from the traditional business loan?
The application for this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and the money could be in your account in 24 hours. Traditional company loans refer to an annual interest rate along with other charges and fees. The business loan is a pre-paid loan so you will know in advance the total amount due, which includes any fees, interest or charges. This is then divided into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company reason, such as cash flow management, business improvements, advertising for purchasing inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal purposes.
Concerning Larger Totara Heights Business Loans
What is the Larger Totara Heights Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
This 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 be eligible for a credit that is this large, your company needs to be operating for at least three years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A large company loan can be used for nearly every business reason, such as business renovations, purchase of equipment or inventory for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This is by way of charge over assets and can include registering this through the PPSR or making a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is generally in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally accountable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR permits preference over private property assigned according to the date a security interest has been registered.
An affidavit is an official document lodged to provide the legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans that exceeds $250,000 it’s possible to offer an initial pre-approval to ease the process. We could be able to do this without credit checks and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering a few financial well-being checks. It’s not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be based on different conditions.
The application process
Can I be eligible for funding?
You may be eligible 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 business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a few minutes and a dedicated company lending specialist will be in touch to guide you through the process.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent as well as 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour, provided you apply at quality company times and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements , we will be able to offer a decision in just the span of one company day.
For Larger Business Loans ($100K or more) we could be likely to provide you with a conditional pre-approval in around 6 hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some transactions have received approval within 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours. You can also permit us to use the advanced bank verification system to instantly confirm your bank details online. If you choose to upload duplicates of your banking accounts, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within one hour if you apply at normal business hours and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements, we are able to provide an answer in as little as the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we could be capable of offer you with conditional pre-approval within 6 hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Certain agreements have been approved in 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours, and let us use the advance bank verification link to verify your bank information online. If you decide to upload duplicates of your banking accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of aspects in order to assess your health of your business and the level of the repayments your company can afford. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
When you make an application for a set amount, we will consider a number of aspects to assess how much we can lend you such as health of your business and the amount of repayments your business can support. The total amount of your loan will be determined by the particular circumstances the company.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for one of our business financing, we’ll assess the risk assessment for your company and provide you with a tailored offer, including the amount of loan, the term and interest rates. The business loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including any costs, fees, or interest rates.
What determines the amount I am charged?
Business loan interest rates differ based on various factors including the amount of money borrowed, the company assets the funds are used to purchase and the sector the company operates in, how long the business has been in operation and whether the company has enough cash flow to support the loan, and also the general well-being or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our company loans. You’ll know precisely how much you’ll be required to pay and at what time, from the very first day. There’s no compounding and there are no additional charges (as as you make your payments on time).
We do not charge an application fee. You are able to get a cash loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan in advance?
You may choose to pay back the entire amount of the loan in full at any time.
If you are deciding to pursue this option, please call our helpful company credit experts. They’ll offer you with details on repayment 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 balance and any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align with your cash flow cycle we offer repayments that are either daily or weekly. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about the ways we gather information, use it, and exchange it, as well as secure your information, is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to security for our clients and security. We utilise a sophisticated bank verification system link to instantly confirm your bank account information online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner borrows from an asset that they own to make the loan. The asset may be a personal asset like the family home or it could be a company asset like a truck or piece or equipment.
The vast majority of the lenders even the largest banks, are inclined to guarantee loans against assets. If you’re having trouble paying back the loan then the asset could be taken over by the lender. In essence it is the process of securing new financing by using the value of what you already have.
What do I require security to secure a business loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds However, we do require the personal guarantee. As long as you follow the loan terms (as stipulated in the loan contract) the security of assets is not needed. For loans that exceed $150,000, generally there is a personal guarantee and security that is in the form charges on assets.