FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Truganina Small Business Loans
Let me know what you think of the Truganina Small Business Loans
Truganina unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from a traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and the funds could be on your account within 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. Our company loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount to be paid, including any fees, charges or charges. This is then broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business reason, such as the management of cash flow, company renovations, marketing to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal use.
About the Larger Truganina Business Loans
What is the Larger Truganina Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
A 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?
To be eligible for a credit of this size, your company needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be used for?
A larger company loan can be used for almost all company need, including business renovations, purchase of new equipment or inventory, as 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 needed for accessing funds over $150,000. It’s in the form of a charge on assets and can be registered in the PPSR or registering as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally based rather than stipulating security over an asset. The person signing the ensure is personally accountable if the business the borrower fails to repay 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 which are registered with respect to personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be granted according to the date a security interest was registered.
The caveat can be described as a formal form of document to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans of more than $250K we can offer an initial pre-approval to make the process. It is possible to do this without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial health questions. It is not an offer of credit or guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could be subject to different terms.
Application process
Do I qualify for funds?
You are eligible to apply for a business 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)
- must show at least six months worth of trade (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 process for applying is fast and easy. Just fill out the online application in just a few minutes, and a dedicated business lending specialist will be in touch to help you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License) and a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details for application including credit consent, 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we can often offer a response in one hour, provided you make your application during standard business hours and allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we’ll be able to provide the decision in as little as one business day.
For Larger Business Loans ($100K to $500K) we may be able to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved within 24 hours.
The fastest way is to make sure you apply during standard company hours. You can also allow us to use the advanced bank verification system to instantly check your bank’s information online. If you opt to upload copies of your bank statements , it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) We can usually provide an answer within one hour if you apply within normal business hours and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your bank statement, we’ll provide an answer in just one business day.
For Larger Business Loans ($100K up to $500,000) we could be capable of offer the conditional pre-approval within 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved within just 24 hours.
The fastest method is to ensure you apply during normal business hours. You can also permit us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload duplicates of your banking statement, it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a specific amount we will consider a number of factors that determine your health of the company and the amount of payments your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your company.
If you apply for a set amount, we look at a range of aspects to determine the well-being of your business and the amount of the repayments your company will be able to support. The amount you receive from your loan will depend on the particulars for your company.
Fees & repayments
How do you charge for an business loan?
When you apply for one of our company credit, we will assess the risk assessment that you have for your company and provide an individualised proposal that includes loan amount, term and interest rates. It is a business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What determines the amount I am charged?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, the company assets the money will be used for as well as the field the business is operating in, how long the company has been running, in the event that the business has sufficient cash flow to fund the loan, as well as the overall health or creditworthiness of the company.
What are the cost?
There are no hidden fees for our company loans. You’ll be aware of the amount you be required to pay and when, right from the day you sign up. There’s no compounding interest and no extra fees (as as you make your payments punctually).
We do not charge an application fee. You can request a credit loan without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of your loan at any point in time.
If you do decide to do this please talk to one of our helpful business loan specialists. The specialists will offer you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal remaining plus any accrued interest as of the date of early payout in addition to 1.5% of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To make sure that you don’t miss payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing how we collect data, process, exchange and protect your information, is of paramount importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We make use of an advanced banking verification system to immediately verify the bank account details online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the business owner utilises an asset that they own to secure the loan. The asset could be an individual property, such as the family home, or an company asset such as a vehicle or piece or equipment.
The majority of the lenders even the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset could be offered for sale by the lender. In essence it’s a way of securing additional financing making use of the value of what you already own.
Are I need security for a business loan?
For loans of up to $150K, no asset security is required prior to the loan’s access However, we do require the personal guarantee. As long as you follow your loan commitments (as specified in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally, there is personal guarantee and security in the form a charge over assets.