FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Tuerong Small Business Loans
Tell me how you are able to avail the Tuerong Small Business Loans
Tuerong unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from the traditional business loan?
Apply for your Small Business Loan in under 10 minutes by phone. You will receive a same day response and the funds could be in your account within 24 hours. Traditional company loans are based on an annual interest rate along with other charges and fees. The business loan is a pre-paid loan and you’ll be aware of the amount you will have to pay, including the interest, fees and charges. This is then broken down into either weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company reason, such as control of cash flow business remodeling, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Tuerong Business Loans
What is the Larger Tuerong Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for a minimum of 3 years, and have an annual income of at least $700K. The applicant must also 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 least 12 months of trading.
What can I use the funds for?
A larger business loan is a great option for almost any company reason, such as company renovations, purchase of new equipment or inventory, as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. This can be done by taking a charge against assets, and could include the registration of this with the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally in nature rather than specifying the security for a particular asset. The person who is signing the ensure is personally accountable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR permits the priority of personal property granted according to the date the security interest has been registered.
Caveats are legal document that is filed to provide an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250,000 we may be able to provide an initial pre-approval in order to ease the process. It is possible to get this done without credit checks and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering a few financial health questions. This is not an offer or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you might receive could be based on different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (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 fill out the online application within a few minutes and an experienced business credit specialist will contact you to guide you through the process.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Application details including credit consent twelve months of bank statements, IRD statement as well as the two most recent years’ financial statements, plus interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we typically provide an answer within one hour – as long as you make your application during standard business time and allow us to utilise the bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements , we’ll be able to offer the decision in just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we could be in a position to offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain agreements have been approved within just 24 hours.
The fastest way can be make sure you apply during standard business hours, and permit us to use the advanced bank verification system link to instantly confirm your bank details online. If you decide to upload the copies of bank statements , it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) We can usually offer an answer in just one hour – as long as you submit your request within standard business timings and allow us to use 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 offer an answer in just one business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain deals have been approved within just 24 hours.
The most effective method for you to apply is make sure you apply during standard business hours. Also, allow us to use our sophisticated bank verification to verify your bank information online. If you decide to upload duplicates of your banking statements, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a specific amount we look at a variety of variables that determine the health of your business and the level of repayments that your company can afford. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
When you apply for a particular amount, we consider a variety of factors to assess the health for your company and the level of the repayments your business can support. The total amount of your loan will be determined by the particulars that are unique to your company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to make an application for one of our company loans, we’ll assess the risk profile that you have for your company and offer you with a tailored offer including loan amount, term and interest rates. This business loan is an upfront cost loan therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What determines the rate that I pay?
The interest rates on company loans rates vary due to factors like the amount of money that is borrowed, what business assets the money will be used for in addition to the industry that the business operates in, the long the business is in operation as well as whether the business has enough cash flow to cover the loan, and also the general health as well as creditworthiness company.
What are the costs?
There are no hidden fees for our company loans, and you’ll know precisely what you’ll need to pay, and when, right from the day you sign up. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can make an application for loans no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can decide to repay the entire amount of the loan at any point in time.
If you decide to pursue this option, please call our helpful business loans specialists. We will provide you with repayment details and an early payout figure. It will be calculated using the total of the remaining principal amount plus any accrued interest as of the time of early payment, plus 1.5 percent of the principal balance and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as safeguard your data, is vital and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to security for our clients and security. We employ a highly sophisticated banking verification system to immediately verify your bank account details online, allowing us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the company owner uses an asset they own to make the loan. The asset can be either an individual asset, such as the family home or a business property like a truck or piece or equipment.
The majority of the lenders including the major banks, prefer to make loans secured by an asset. If you’re having trouble paying back the loan then your assets could be sold by the lender. In essence, it is an opportunity to secure new financing by using the value of what you already own.
Are I need security to secure a business loan?
Up to $150K in loans no asset security is required before you can access the money but we require a personal guarantee. require an individual guarantee. In the event that you fulfill your loan obligations (as specified in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans of over $150,000 typically, you will need an individual guarantee and security in the form of charges on assets.