FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Totara Park Small Business Loans
Tell me what you think of the Totara Park Small Business Loans
Totara Park unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
Apply to get your Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and have the funds in your account in 24 hours. Traditional business loans are based on an interest rate per annum as well as other fees and charges. Our company loan is a loan that is priced upfront so you will know in advance the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business reason, such as managing cash flows, business improvements, advertising to purchase inventory, new equipment, as general working capital and so much more. The loan is not available for personal purposes.
About larger Totara Park Business Loans
What is the Larger Totara Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to have been in operation for at least 3 years with an annual turnover of $700,000. 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 minimum 12 months of continuous trading.
What can I use the funds for?
A large company loan can be used for almost any business purpose including company renovations, to purchase inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It is usually as a result of an charge against assets, and may be registered with the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally based rather than stating the security for a particular asset. The person signing the guarantee is personally accountable if the company 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 reflects security interests that are registered for personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned in accordance with the date on which a security interest that is registered.
Caveats are legal document filed to provide the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for larger business loans that is greater than $250K we may be able to provide an initial pre-approval that will help make the process. We could be able to do this without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial well-being checks. This is not an offer or guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer that you may receive may be on different terms.
Do I qualify for funds?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application within a few minutes and a dedicated company credit specialist will call you to assist you.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within one hour if you submit your request at quality company timings and permit us to utilise the 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 a decision in just an business day.
If you are applying for a Larger Business Loan ($100K or more) we may be likely to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved in less than 24 hours.
The quickest method is to make sure you apply during normal business hours, and allow us to use the advance bank verification link to instantly verify your bank account information online. If you opt to upload copies of your bank statement, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we typically provide a response in one hour, provided you make your application at normal business timings and permit us to use the bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statement, we’ll provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be in a position to offer you with conditional pre-approval within 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some agreements have been approved in 24 hours.
The most efficient method can be make sure you apply during normal business hours, and allow us to use our modern bank verification to confirm your bank details online. If you send us the copies of bank accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a particular amount, we take into consideration a range of aspects in order to assess what is the well-being of the business and the level of the repayments your business will be able to support. The amount you receive from the loan will be determined by the specifics of your company.
When you make an application for a certain amount, we will consider a number of aspects to assess your health of your business as well as the amount of payments your company will be able to support. The total amount of your loan will depend on the particulars that are unique to your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to make an application for our company credit, we’ll assess the risk profile of your company and offer you with a customised proposal that includes the amount of loan, the term and interest rates. A business loan is an upfront cost loan and you’ll know in advance the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I pay?
Business loan interest rates vary due to factors such as the amount that is borrowed, what business assets the funds are used to purchase and the sector the business is operating in, how long the business has been running and how long the company has enough cash flow to support the loan, and overall well-being or creditworthiness of the business.
What are the cost?
There are no hidden fees for our business loans. You’ll know precisely how much you need to pay and when, starting from the day you sign up. There’s no compounding interest and no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You are able to get a cash loan with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Can I repay the loan early?
You may choose to pay back the entire amount of the loan at any point in time.
If you are deciding to do this please speak to our friendly business loans specialists. We will provide you with details on repayment and an early payout figure. This is calculated as the sum of the principal balance and accrued interest to the date of early payout, plus 1.5% of the remaining principal as well as any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in with your cash flow routine, we provide payments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being transparent about how we collect data, process, exchange and safeguard your data, is of huge importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We use an advanced bank verification system that allows you to instantly confirm your bank account information online to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an business owner utilises an asset they own to get the loan. The asset may be an asset belonging to the personal, like the family home or an business asset such as a vehicle or piece of equipment.
The vast majority of banks, even the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan then the asset might be transferred to the lender. In essence, it is means of securing new financing using the value of what you already own.
Should I require security to secure a business loan?
For loans up to $150K it is not necessary to secure assets before you are able to access the money however, we require a personal guarantee. require an individual guarantee. In the event that you fulfill your loan commitments (as detailed in the loan contract), asset security is not needed. For loans that exceed $150,000, generally, there is personal ensure and security in the form of an asset charge.