FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Taigum Small Business Loans
Tell me what you think of the Taigum Small Business Loans
Taigum unsecured loans provides the range of $5,000 to $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 how is the Unsecured Loan different from an traditional company loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and the money could be available in just 24 hours. Traditional company loans have an annual rate of interest as well as other fees and charges. We offer a business loan is an upfront priced loan so you will be aware of the total amount payable including the interest, fees and charges. This is then divided into a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company purpose including the management of cash flow, company renovations, marketing to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal use.
About larger Taigum Business Loans
What is the Larger Taigum Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
A 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 qualify for a loan in this amount, your company needs to be trading for at least 3 years and have an annual turnover of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funds for?
A large business loan can be used for nearly all company purpose including company renovations, to purchase new equipment or inventory for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This can be done as a result of an charge on assets, which could also be registered through the PPSR or the registration of a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is generally in nature rather than specifying security over an asset. The person who is signing the ensure is personally accountable if the company lender is not able to re-pay the debt.
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 granted to individuals who own personal property (including the assets or goods). The PPSR gives priority over personal property to be granted according to the date a registration of a security interest.
A caveat is a legal document that is filed to offer notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger company loans that exceeds $250,000 it is possible to offer an initial pre-approval to simplify the process. We could be able to get this done without credit checks and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial well-being questions. It is not an offer or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you might receive could have different conditions.
Application process
Are I eligible for funding?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form within a couple minutes, and an experienced company expert in lending will contact you to guide you through the process.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent, 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) We can usually offer an answer within an hour – as long as you apply during standard business times and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements , we will be able to provide a decision within just an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be capable of offer you with a conditional pre-approval within six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Some offers have been approved in the space of 24 hours.
The quickest way to apply can be ensure you apply during standard business hours and allow us to use our modern bank verification to instantly check your bank’s information online. If you choose to upload the copies of bank statements it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we typically offer an answer within an hour – provided you submit your request in normal business times and let us use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statements, we are able to offer an answer within one business day.
For Larger Business Loans ($100K or more) We may be in a position to offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The fastest way would be to ensure you apply during normal business hours, and let us use the modern bank verification link to instantly confirm your bank details online. If you choose to send us copies of your bank statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a certain amount, we look at a variety of variables in order to assess how much we can lend you well-being of the business as well as the amount of payments your company is able to afford. The amount you receive from your loan will be contingent on the specifics for your business.
When you make an application for a certain amount, we consider a variety of variables to determine your well-being of your business and the level of repayments that your business will be able to support. The amount you receive from your loan will depend on the particular circumstances of your business.
Fees & repayments
How do you charge for a business loan?
If you decide to make an application for our business financing, we will assess the risk profile the business and offer an individualised proposal that includes the amount of the loan, the duration and interest rates. It is a business loan is an upfront-priced loan therefore you will know the exact amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I’m charged?
The interest rates on company loans rates depend on several factors such as the amount that is that is borrowed, what business assets the funds are used to purchase and the sector the business operates in, how long the company has been running for, how long the company has sufficient cash flow to cover the loan, and overall health or creditworthiness of the company.
What are the fees?
There are no hidden fees for our company loans, and you’ll know exactly how much you’ll need to pay and at what time, from day one. There’s no compounding and no extra fees (as as you make your payments in time).
We do not charge an application fee. You can apply for a loan no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I repay the loan early?
You may choose to pay back the total amount of your loan in full at any time.
If you decide to do this please talk to one of our helpful business lending specialists. We will provide you with details on repayment as well as an early payout amount. It will be calculated using the total of the principal remaining and accrued interest to the date of early payout plus 1.5% of the principal balance as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to security for our clients and privacy. We make use of an advanced bank verification system link to immediately verify your bank account details online. This allows us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner utilises an asset that they own to obtain the loan. The asset can be either an individual asset, such as the family home or an company property like a truck or piece of equipment.
The vast majority of lenders, including the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan, then your assets could be transferred to the lender. In essence, it’s an opportunity to secure new financing by using the value of what you already have.
Do I need security for a business loan?
For loans up to $150,000 the requirement for asset security is not required before you can access the money however, we do require a personal guarantee. As long as you follow the terms of your loan (as detailed in your loan contract) the security of assets will never be required. If you take out loans in excess of $150K generally there is a personal guarantee and security in the form of the charge of assets.