FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Tottenham Small Business Loans
Tell me about the Tottenham Small Business Loans
Tottenham unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from an traditional company loan?
Apply to the Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and the money could be in your account in 24 hours. Traditional business loans have an interest rate per annum as well as other fees and charges. We offer a business loan is a loan that is priced upfront and you’ll know in advance the total amount payable including the interest, fees and charges. Then, it is broken down into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business reason, such as cash flow management, business remodeling, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available for personal use.
Concerning Larger Tottenham Business Loans
What is the Larger Tottenham Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be operating for a minimum of 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A larger business loan can be used for nearly every company reason, such as business renovations, to purchase inventory or new equipment or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It’s by taking a charge on assets, and may include registration with the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to repay a loan which is generally based rather than specifying security over a particular asset. The person signing the ensure is personally liable in the event that the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR gives the priority of personal property assigned depending on the date that a security interest has been registered.
Caveats are legal document lodged to provide an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan of $250K or more, we may offer an initial pre-approval in order to simplify the process. We could be able to make this decision without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial health questions. It is not an offer or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you might receive could be subject to different terms.
Application process
Are I eligible for funding?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and an experienced company lending specialist will be in touch to guide you.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent, 12 months of bank statements, IRD statement, last 2 years finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we can often offer a response in one hour – as long as you apply in standard company time and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements , we’ll be able to provide the decision in just 1 business day.
For the Larger Business Loan ($100K or more) we could be capable of offer you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval in just 24 hours.
The fastest way can be make sure you apply during normal business hours, and let us use the advance bank verification link to instantly verify your bank information online. If you send us the copies of bank statements , it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we can often provide an answer within one hour, provided you make your application within standard business hours and permit us to use the bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statement, we’ll provide an answer in just an business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be in a position to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain offers have been approved within less than 24 hours.
The fastest method would be to make sure you apply during normal business hours. You can also permit us to use the modern bank verification to instantly verify your bank information online. If you opt to upload duplicates of your banking statements it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount we consider a variety of elements that determine how much we can lend you well-being of the business and the extent of repayments your company can afford. The amount you receive from your loan will depend on the specifics for your company.
When you make an application for a specific amount we take into consideration a variety of elements to determine how much we can lend you such as health of the company and the amount of payments your business can support. The total amount of the loan will be determined by the particulars that are unique to your company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request business loans with us business loan, we will assess the risk assessment of your business and provide you with a customised offer including the amount of the loan, the duration and interest rates. The business loan is an upfront cost loan and you’ll know the exact amount payable including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
Business loan interest rates depend on a variety of factors including the amount of money borrowed, the company assets the money will be used for, the industry the company operates in, the long the business has been operating as well as what percentage of the company has enough cash flow to fund the loan, and also the general well-being and creditworthiness of the business.
What are the charges?
There are no hidden costs with our business loans. You’ll know precisely what it is that you need to pay, and when, starting from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments in time).
We do not charge an application fee. You are able to request a credit loan with with no upfront cost or commitment to apply.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan early?
You can choose to repay the total amount of your loan early at any time.
If you choose to pursue this option, please speak to our friendly business credit professionals. We will provide you with details for repayment and an early payment figure. It will be calculated using the total of the principal remaining and the accrued interest up to the time of early payout, plus 1.5% of the principal balance and any outstanding fees.
How do you make repayments work?
To make sure you do not miss payment dates and to align with your cash flow standard, we provide repayments either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is crucial and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We make use of an advanced banking verification system to immediately verify the bank account details online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner borrows from assets they own to make the funds for a loan. The asset may be an individual property, such as the family home, or an company asset like a truck or other piece of machinery.
The vast majority of lenders, even the banks with the biggest size, prefer to secure loans against assets. If you are having difficulty paying back the loan, then the asset could be sold by the lender. In essence it is means of securing new funding taking advantage of the value of what you already own.
Are I need security to secure an business loan?
For loans up to $150,000 no asset security is required in advance to gain access to the funds however, we do require a personal guarantee. So long as you comply with your loan obligations (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans of over $150,000 typically, you will need an individual ensure and security in the form charges on assets.