FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Thornlands Small Business Loans
Tell me what you think of the Thornlands Small Business Loans
Thornlands unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
You can apply to this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and the funds could be in your account within 24 hours. Traditional business loans reference an annual rate of interest along with other charges and fees. The business loan is a pre-paid loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then broken down into either weekly or daily amount to be paid back.
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, business improvements, advertising for purchasing inventory or new equipment, to fund general working capital and much more. The loan is not available for personal purposes.
About Larger Thornlands Business Loans
What is the Larger Thornlands Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funds be used for?
A large company loan is a great option for almost all company reason, such as business improvements, purchasing equipment or inventory for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. This is by taking a charge over assets, which could also include registration through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally in nature rather than stipulating the security for a particular asset. The person who is signing the ensure is personally liable if the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR grants preference over private property granted in accordance with the date on which a security interest that is registered.
Caveats are legal document that is filed to provide notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger business loans of more than $250,000 it is possible to offer an initial pre-approval to simplify the process. We might be able to make this decision without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial well-being checks. This is not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you may receive may be subject to different conditions.
The application process
Are I eligible for funding?
You may be eligible for a company 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)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form in few minutes and a dedicated business lending specialist will call you to help you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we typically offer an answer within an hour – as long as you apply within standard company times and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statement, we’ll provide an answer in as little as one business day.
If you are applying for a Larger Business Loan ($100K or more) we could be capable of provide the conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The quickest way to apply can be make sure you apply during normal company hours. Also, allow us to use our advance bank verification to verify your bank account information online. If you choose to upload documents from your account statements it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we typically offer an answer within one hour – provided you apply within normal business times and you allow us to use the bank verification system link to instantly verify your bank information online. If you decide to upload copies of your banking statements, we will be able to offer a decision in as little as an business day.
For Larger Business Loans ($100K or more) we might be likely to offer you with conditional pre-approval within 6 hours. Once you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some deals have been approved within the space of 24 hours.
The fastest way is to ensure you apply during normal business hours. You can also allow us to use our sophisticated bank verification to instantly check your bank’s information online. If you opt to upload the copies of bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount, we look at a variety of factors for determining your well-being of your company and the amount of repayments that your company is able to afford. The total amount of the loan will be determined by the specific circumstances of your business.
When you submit an application for a certain amount, we will consider a number of elements to assess your well-being for your business and the extent of payments your business is able to afford. The amount you receive from your loan will depend on the particular circumstances for your company.
Fees & repayments
What is the cost for a business loan?
If you decide to request the business loan, we’ll assess the risk profile the business and offer you with a customised proposal that includes the amount of the loan, the duration and interest rates. This company loan is an upfront-priced loan and you’ll know the exact amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates vary due to factors including the amount borrowed, the business assets the funds are used to purchase in addition to the industry that the company operates in, the long the company has been in operation as well as what percentage of the company has sufficient cash flow to pay for the loan, and general well-being and creditworthiness of the company.
What are the fees?
There are no hidden fees with our company loans, and you’ll know precisely what you need to pay, and when, right from the very first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You can make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of the loan at any point in time.
If you do decide to take this route, please speak to our friendly business loans specialists. We will provide you with repayment details and an early payout figure. This will be calculated as the total of the remaining principal amount and any accrued interest at the time of the early payout and 1.5% of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in with your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing how we collect, use, exchange and 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 standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and security. We make use of an advanced bank verification system to instantly verify your bank account information online, allowing us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the company owner makes use of assets they own to obtain the loan. The asset could be an individual property, such as the family home or a business asset like a truck as well as a piece of machine.
The majority of banks, even the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan, then your assets could be taken over by the lender. In essence it’s means of securing additional financing taking advantage of the value of what you already own.
Do I need security to get a company loan?
Up to $150,000 in loans there is no requirement for asset security in advance to gain access to the funds however, we require a personal guarantee. need an individual guarantee. If you adhere to your loan obligations (as specified in the loan contract) Asset security is not required. For loans that exceed $150K, generally, you can get the option of a personal ensure and security that is in the form charges on assets.