FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Thorneside Small Business Loans
Let me know how you can avail the Thorneside Small Business Loans
Thorneside unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional company loan?
You can apply for the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and funds may be available in just 24 hours. Traditional company loans reference an annual rate of interest along with other charges and fees. We offer a business loan is a loan that is priced upfront therefore you’ll know in advance the total amount due, which includes the interest, fees and charges. Then, it is divided into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business reason, such as cash flow management, business remodeling, marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan cannot be used to fund personal expenses.
About the Larger Thorneside Business Loans
What is the Larger Thorneside Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to have been trading for at least 3 years with an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly every business need, including business renovations, purchase of equipment or inventory as well as for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is by way of charge over assets and can include registration through the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally in nature rather than defining the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including objects or assets). The PPSR permits prioritisation over property that is personal to be granted in accordance with the date on which a security interest was registered.
An affidavit is an official document that is filed to provide an official notice of a claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that exceeds $250K, we may offer a preliminary pre-approval to help make the process. We might be able to make this decision without credit checks and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial health questions. It’s not an offer or guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may have different conditions.
The application process
Do I have the right to receive funds?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form in just a few minutes, and an experienced business expert in lending will call you to assist you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Information on the application including credit consent and 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we can often offer an answer within one hour if you make your application at standard business hours and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your bank statement, we’ll provide an answer within 1 business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be able to offer you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be quicker based on the specifics of each application. Certain offers have been approved in less than 24 hours.
The quickest method is to ensure you apply during normal business hours and permit us to use the modern bank verification link to verify your bank information online. If you send us documents from your account statements , it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour – as long as you apply within normal business time and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you want to submit copies of your bank statements, we are able to provide the decision in just an business day.
For Larger Business Loans ($100K and up) we could be able to offer you with conditional pre-approval in about 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be faster depending on the specifics of each application. Certain agreements have been approved within just 24 hours.
The fastest method would be to make sure you apply during standard business hours, and permit us to use the modern bank verification to check your bank’s information online. If you upload documents from your account statements, it takes a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a certain amount we consider a variety of variables that determine how much we can lend you health for your business and the amount of payments your company can support. The total amount of your loan will be contingent on the specifics the business.
When you make an application for a particular amount, we look at a range of elements to determine your well-being for your company as well as the amount of the repayments your company can afford. The total amount of your loan will be contingent on the specific circumstances the business.
Fees & repayments
How much do you charge for an company loan?
If you decide to request our business loans, we will assess the risk profile for your business and provide you with a customised proposal that includes loan amount, term and the interest rates. The 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 determines the amount I am charged?
Interest rates for company loans rates vary due to factors including the amount of money borrowed, the company assets the money will be used for in addition to the industry that the company operates in, the long the company is in operation for, whether the business has enough cash flow to fund the loan, as well as the overall health and creditworthiness of the business.
What are the cost?
There are no hidden fees for our company loans, and you’ll be aware of the amount it is that you need to pay, and when, starting from the first day. There’s no compounding interest, and there are no additional charges (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 absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan early?
You can decide to repay the entire amount of your loan early at any time.
If you are deciding to take this route, please speak to our friendly company credit experts. We will offer you with details for repayment along with an early payout estimate. This will be calculated as the sum of the principal remaining and the accrued interest up to the time of early payment plus 1.5% of the principal amount remaining and any fees that remain unpaid.
How do you make repayments work?
To help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about how we collect data, process, exchange and safeguard your data, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our clients and security. We employ a highly sophisticated bank verification system that allows you to immediately verify the bank account details online so we can offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a company owner utilises assets they own to secure the funds for a loan. The asset can be a personal asset like the family home, or an business asset like a truck or other piece of machinery.
The vast majority of lending institutions, even the banks with the biggest size, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then the asset could be offered for sale by the lender. In essence it is an opportunity to secure additional financing using the value of what you already own.
Should I need security for an company loan?
Up to $150K in loans it is not necessary to secure assets prior to the loan’s access, however we do require a personal guarantee. As long as you follow the terms of your loan (as specified in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150K, generally there is the option of a personal ensure and security in the form charges on assets.