FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Trentham Small Business Loans
Let me know more about Trentham Small Business Loans
Trentham unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and the money could be in your account in 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. This business loan is a cash-based loan so you will know ahead of time the total amount due, which includes the interest, fees and charges. Then, it is divided into weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company purpose including control of cash flow company remodeling, marketing to purchase inventory, new equipment, for general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Trentham Business Loans
What is the Larger Trentham Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been trading for at least 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A Business Loan of a larger size is a great option for almost every company use, including company renovations, purchase of new equipment or inventory, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. This can be done by way of charge over assets and can be registered through the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to repay a loan which is general in nature, rather than specifying the security for a particular asset. The person who is signing the ensure is personally liable 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 lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date a security interest was registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan of $250K or more we can offer an initial pre-approval that will help smooth out the process. We could be able to apply for this without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial well-being questions. It is in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you receive could be subject to different terms.
Are I eligible for funding?
You can 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 company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and a dedicated company loan specialist will contact you to assist you.
To apply for up to $100,000 you’ll need the right identification documents (valid Driver’s License) and a valid NZBN/IRD as well as at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent and 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we can often offer a response in one hour if you submit your request during standard company time and you allow us to utilise the bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statement, we’ll provide a decision within one company day.
If you are applying for a Larger Business Loan ($100K or more) we could be able to offer you with a conditional pre-approval in about 6 hours. After you’ve signed your pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some deals have been approved in the space of 24 hours.
The quickest method would be to make sure you apply during normal business hours, and allow us to use the modern bank verification link to check your bank’s information online. If you decide to send us the copies of bank statements , it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we typically offer an answer within one hour – as long as you submit your request in normal business timings and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your bank statement, we’ll offer the decision within 1 business day.
For Larger Business Loans ($100K to $500K) we may be capable of offer you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some agreements have been approved in the space of 24 hours.
The fastest way can be make sure you apply during standard business hours. Also, let us use the advance bank verification link to instantly check your bank’s information online. If you opt to upload the copies of bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a particular amount, we consider a variety of elements to determine how much we can lend you well-being that is your business and the level of payments your business can afford. The total amount of your loan will depend on the specific circumstances for your company.
If you apply for a specific amount we consider a variety of variables to assess the health of the company and the amount of repayments that your business is able to afford. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
Fees & repayments
How do you charge for an business loan?
When you request one of our business loan, we will assess the risk profile of your company and provide you with a tailored offer that includes the amount of loan, the term and interest rates. This business loan is a loan that is priced upfront so you will be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I am charged?
The interest rates on business loans rates depend on several factors including the amount borrowed, what company assets the funds will be used for and the sector the business operates in, how long the business has been running for, whether the business has sufficient cash flow to support the loan, and the general health or creditworthiness of the business.
What are the cost?
There are no hidden costs with our company loans, and you’ll be aware of the amount it is that you need to pay and when, from day one. There’s no compounding interest and no extra fees (as as long as you pay your payments in time).
We don’t charge an application fee. You are able to apply for a loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan in advance?
You can choose to repay the entire amount of the loan in full at any time.
If you are deciding to pursue this option, please talk to one of our helpful business loan experts. We will provide you with the details of your 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 payment in addition to 1.5 percent of the principal remaining and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect data, process, exchange and ensure the security of your information is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We employ a highly sophisticated bank verification system link to immediately verify your bank account information online so we can offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term “asset-based” refers to borrowing where a business owner uses an asset they own to make the funds for a loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a business asset like a truck or other piece of machinery.
The majority of lenders, including the big banks, tend to make loans secured by an asset. If you have trouble paying back the loan, the asset might be transferred to the lender. In essence it is the process of securing additional financing making use of the value of what you already have.
What do I require security for a business loan?
For loans of up to $150K, no asset security is required upfront to access the money but we do need the personal guarantee. So long as you comply with the loan terms (as stipulated in your loan contract document) the security of assets is not required. For loans of over $150,000 generally, you are able to get the option of a personal guarantee and security that is in the form an asset charge.