FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Takapuna Small Business Loans
Let me know what you think of the Takapuna Small Business Loans
Takapuna unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
The application to the Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and the funds could be available in just 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. Our company loan is a loan that is priced upfront so you will be aware of the total amount payable including any interest, fees or charges. This is then divided into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company purpose including cash flow management, company improvements, advertising to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Takapuna Business Loans
What is the Larger Takapuna Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to be operating for a minimum of 3 years and have an annual turnover of $700K. It is necessary to 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 to demonstrate at the least 12 months of operating.
How can the funds be used for?
A Business Loan of a larger size can be used for nearly every business need, including company remodeling, buying inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. It is usually in the form of a charge over assets and can include registering this on the PPSR or registering as a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally in nature rather than stating security over an asset. The person who is signing the guarantee is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
An affidavit is an official document lodged to offer notice of a legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250K we can offer a preliminary pre-approval to help make the process. We could be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes you answering some financial well-being checks. This is not an offer or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you may receive may be subject to different terms.
The application process
Do I have the right to receive funds?
You may be eligible for a 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 business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in few minutes and a dedicated company loan specialist will be in touch to guide you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we usually provide a response in one hour – as long as you make your application at standard business times and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statement, we’ll offer the decision within just the span of one company day.
For the Larger Business Loan ($100K or more) we may be in a position to provide the conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Some offers have been approved in 24 hours.
The quickest method is to ensure you apply during standard business hours. Also, allow us to use the advanced bank verification system to verify your bank account information online. If you send us duplicates of your banking statements it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within an hour, provided you apply within standard business times and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statements, we are able to provide the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be in a position to offer the conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain agreements have been approved in just 24 hours.
The fastest method is to make sure you apply during standard business hours, and allow us to use the sophisticated bank verification link to instantly confirm your bank details online. If you decide to send us duplicates of your banking statements, it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of elements to determine your health of the company and the level of the repayments your business is able to afford. The total amount of the loan will be determined by the specific circumstances the business.
If you apply for a particular amount, we look at a range of elements to determine the health of your business and the amount of repayments your company is able to afford. The total amount of your loan will be determined by the specifics the business.
Fees & repayments
What is the cost for an business loan?
When you request one of our company financing, we’ll assess the risk assessment the company and offer you with a tailored offer including loan amount, term and the interest rates. A business loan is an upfront cost loan and you’ll know the exact amount payable including any charges or interest.
What determines the amount I’m charged?
Interest rates for business loans rates depend on several factors such as the amount that is of money borrowed, the business assets the funds are used to purchase as well as the field the company operates in, how long the company has been running for, what percentage of the company has sufficient cash flow to pay for the loan, and the overall health as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges for our company loans. 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 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 the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay out the loan earlier?
You can repay the total amount of your loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful company lending specialists. They’ll provide you with details for repayment and an early payment figure. It will be calculated using the total of the principal remaining plus any accrued interest as of the time of early payment and 1.5% of the principal remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being transparent about the ways we gather, use, exchange and safeguard your data, is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We employ a highly sophisticated bank verification system to immediately confirm your bank account information online, allowing us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner makes use of an asset that they own to secure the funds for a loan. The asset may be an individual property, such as the family home or an business asset such as a vehicle as well as a piece of machine.
The majority of the lenders not just the largest banks, are inclined to secure loans against an asset. If you are having difficulty paying back the loan, then the asset could be transferred to the lender. In essence, it’s an opportunity to secure new financing making use of the value of what you already own.
Should I require security for a business loan?
Up to $150,000 in loans there is no requirement for asset security prior to the loan’s access but we require a personal guarantee. require the personal guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract document), asset security will never be needed. For loans of over $150,000 generally there is a personal guarantee and security in the form of a charge over assets.