FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Tea Tree Gully Small Business Loans
Tell me about the Tea Tree Gully Small Business Loans
Tea Tree Gully unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
The application for this Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and funds may be available in just 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. This business loan is a loan that is priced upfront which means you know in advance the amount you will have to pay, including the interest, fees and charges. This is then divided into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every business reason, such as control of cash flow company remodels and marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Tea Tree Gully Business Loans
What is the Larger Tea Tree Gully Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to be in operation for at least 3 years with an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used for almost every company reason, such as company renovations, purchase of new equipment or inventory, as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It’s by taking a charge against assets and can include registration through the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature, rather than specifying the security for a particular asset. The person signing the ensure is personally responsible if the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR gives priority over personal property to be assigned according to the date a security interest that is registered.
Caveats are legal document that is filed to offer the legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250K we may be able to provide an initial pre-approval that will help make the process. We may be able to apply for this without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial well-being questions. It is not an offer of credit or guarantee of finance. A conditional approval is subject an assessment of your creditworthiness and any offer you receive could have different conditions.
Application process
Do I have the right to receive funds?
You may apply for an business 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)
- can demonstrate at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a few minutes and a dedicated business loan specialist will contact you to help you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour, provided you make your application within quality business times and let us utilise the advanced bank verification system link 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 as little as 1 business day.
For Larger Business Loans ($100K or more) we could be capable of offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved in 24 hours.
The most efficient method is to ensure you apply during standard company hours, and allow us to use the modern bank verification link to confirm your bank details online. If you choose to upload documents from your account accounts, it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour, provided you submit your request within normal business times and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements we can provide an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) we may be capable of offer you with conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some offers have been approved within less than 24 hours.
The most efficient method would be to ensure you apply during standard business hours and permit us to use the advance bank verification to instantly verify your bank information online. If you opt to send us copies of your bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a particular amount, we look at a variety of elements to determine your well-being of your company and the extent of repayments your business can afford. The total amount of your loan will be contingent on the specifics for your company.
When you apply for a certain amount, we will consider a number of variables to assess how much we can lend you such as health of the company and the level of repayments that your company is able to afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your business.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to request one of our company loans, we will assess the risk assessment of your company and provide an individualised offer, including the amount of the loan, the duration and the interest rates. The company loan is an upfront priced loan which means you know the exact amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I am charged?
Interest rates for company loans rates differ based on various factors including the amount borrowed, what company assets the funds are used to purchase and the sector the business is operating in, how long the business has been running for, what percentage of the business has sufficient cash flow to pay for the loan, and the general well-being as well as creditworthiness company.
What are the fees?
There aren’t any hidden costs with our company loans, and you’ll know precisely how much you need to pay, and when, starting from the very first day. There’s no compounding and there are no additional charges (as as long as you pay your payments punctually).
We do not charge an application fee. You can request a credit loan with with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan early?
You may choose to pay back the total amount of your loan at any point in time.
If you choose to pursue this option, please speak to our friendly company lending specialists. They will provide you with details for repayment and an early payout figure. The figure will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payout plus 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
To make sure you do not miss repayments and to fit in with your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being transparent about how we collect information, use it, and exchange it, as well as safeguard your data, is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and security. We utilise a sophisticated bank verification system link to immediately confirm your bank account information online to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner makes use of the assets they have to get the funds for a loan. The asset could be an individual property, such as the family home or an business asset such as a vehicle or piece or equipment.
The majority of banks, not just the big banks, tend to guarantee loans against an asset. If you are having difficulty paying back the loan, your asset may be taken over by the lender. In essence it’s an opportunity to secure additional financing taking advantage of the value of what you already own.
Should I require security for a company loan?
For loans that exceed $150,000, the requirement for asset security is not required before you can access the money however, we require a personal guarantee. require a personal guarantee. If you adhere to your loan commitments (as stated in your loan contract document) and you are able to meet your obligations, asset security will never be required. If you take out loans in excess of $150,000 typically, you will need a personal ensure and security in the form of the charge of assets.