FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Tanah Merah Small Business Loans
Let me know about the Tanah Merah Small Business Loans
Tanah Merah unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
You can apply for your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and have the funds available in just 24 hours. Traditional company loans refer to an interest rate per annum together with additional fees and charges. The business loan is a loan that is priced upfront therefore you’ll be aware in advance of the total amount due, which includes the interest, fees and charges. This is then broken down into weekly or daily installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business use, including the management of cash flow, business renovations, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal reasons.
About larger Tanah Merah Business Loans
What is the Larger Tanah Merah Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for at least three years, and have an annual income of $700K. You must be 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.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost every business reason, such as business improvements, purchasing new equipment or inventory or as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It is usually by taking a charge against assets, which could also include registering this with the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature, rather than stating security over a particular asset. The person who signs the guarantee is personally responsible if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR permits preference over private property assigned depending on the date that a registration of a security interest.
Caveats are legal document filed to offer the legal claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan of more than $250K we may be able to provide an initial pre-approval in order to smooth out the process. It is possible to get this done without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial well-being questions. It’s neither an offer nor a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be subject to different terms.
The application process
Do I have the right to receive funds?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (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 continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form in just a few minutes, and a dedicated business credit specialist will contact you to guide you through the process.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s License) and an NZBN/IRD that is valid and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, 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 twelve month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often provide a response in one hour, provided you apply in standard company time and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements we can offer an answer within just an business day.
For the Larger Business Loan ($100K and up) we could be in a position to provide the conditional pre-approval within about six hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours. You can also allow us to use our modern bank verification to instantly confirm your bank details online. If you upload copies of your bank statements it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we can often provide an answer within one hour if you apply within normal business times and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statement, we’ll provide the decision within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be able to offer you with a conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Certain transactions have received approval within 24 hours.
The fastest way can be ensure you apply during standard business hours. You can also allow us to use the modern bank verification to verify your bank information online. If you upload duplicates of your banking statements it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of factors for determining the well-being for your company and the amount of the repayments your company is able to afford. The amount you receive from your loan will be contingent on the specifics for your company.
When you make an application for a particular amount, we consider a variety of variables to assess your well-being of your business and the amount of repayments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances for your company.
Fees & repayments
How much should you charge for an business loan?
If you decide to apply for business loans with us company loans, we’ll assess the risk profile the company and provide an individualised offer that includes the loan amount, the terms and interest rates. This business loan is an upfront priced loan therefore you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Business loan interest rates differ based on various variables like the amount to be borrowed, what business assets the funds will be used for as well as the field the business is in, how long the business has been running for, how long the company has sufficient cash flow to pay for the loan, and also the overall well-being or financial standing of the business.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll know exactly how much it is that you need to pay and when, starting from the 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 are able to make an application for loans no cost upfront or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of the loan early at any time.
If you do decide to pursue this option, please talk to one of our helpful company loans specialists. They will offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal remaining and any accrued interest at the time of early payout, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss repayments and to fit in with your cash flow routine, we offer repayments that are either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing how we collect data, process, exchange and secure your information, is of huge importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to customer security and security. We utilise a sophisticated bank verification system that allows you to immediately confirm your bank account information 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 uses an asset that they own to obtain the loan. The asset may be an individual property, such as the family home or a company asset such as a truck or piece or equipment.
The vast majority of banks, even the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then the asset might be transferred to the lender. In essence it is an opportunity to secure additional financing using the worth of the asset you already own.
What do I need security for an business loan?
For loans of up to $150K, it is not necessary to secure assets before you can access the money, however we require a personal guarantee. need a personal guarantee. As long as you follow your loan obligations (as stipulated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150,000, generally, you are able to get personal ensure and security in the form of charges on assets.