FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Tuerong Small Business Loans
Tell me about the Tuerong Small Business Loans
Tuerong unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
The application to get this Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and the money could be in your account within 24 hours. Traditional business loans reference an annual interest rate plus other fees and charges. Our business loan is an upfront priced loan so you will be aware of the total amount to be paid, including the interest, fees and charges. Then, it is broken down into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business need, such as managing cash flows, business remodels and marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used for personal purposes.
Concerning Larger Tuerong Business Loans
What is the Larger Tuerong Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can the funding be used for?
A larger business loan can be used for nearly any business purpose including company remodeling, buying new equipment or inventory for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. It is usually by taking a charge on assets, which could also include registering this through the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is generally in nature rather than defining the security for a particular asset. The person who is signing the guarantee is personally liable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR allows priority over personal property to be assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal document lodged to provide notice of a legal claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan of more than $250,000 it’s possible to offer an initial pre-approval to smooth out the process. We could be able to make this decision without a credit check, and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial health questions. It’s neither an offer nor a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer that you might receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You are eligible to apply for an 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)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and a dedicated company loan specialist will contact you to help you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we can often provide an answer within one hour, provided you submit your request at quality company time and you allow us to utilise the bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll provide a decision in as little as one company day.
For the Larger Business Loan ($100K and up) we could be likely to offer you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal business hours. Also, let us use the modern bank verification to check your bank’s information online. If you 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 up to $100,000) we typically provide a response in one hour – as long as you make your application at standard business hours and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statement, we’ll provide the decision in just an business day.
For Larger Business Loans ($100K to $500K) We may be able to provide the conditional pre-approval within 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The quickest method would be to make sure you apply during normal business hours. Also, let us use the modern bank verification link to confirm your bank details online. If you choose to upload copies of your bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a specific amount we will consider a number of variables to determine your health of the company and the amount of repayments that your business will be able to support. The total amount of your loan will depend on the specific circumstances that are unique to your business.
If you apply for a specific amount we take into consideration a variety of variables to assess the well-being of your company and the extent of payments your business can support. The total amount of the loan will be determined by the particulars the company.
Fees & repayments
What is the cost for an business loan?
When you apply for one of our business loan, we will assess the risk profile for your business and offer you with a customised proposal that includes the amount of loan, the term and interest rates. This business loan is an upfront-priced loan so you will know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I pay?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, the company assets the funds will be used for, the industry the company operates in, the long the business has been in operation, in the event that the business has enough cash flow to support the loan, as well as the overall well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much you need to pay, and at what time, from the very first day. There’s no compounding interest, and no additional fees (as long as you make your payments punctually).
We do not charge an application fee. You can request a credit loan with no upfront cost or any obligation to sign up.
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% of the amount of the loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the total amount of your advance loan at any time.
If you are deciding to do this please contact our helpful company loan specialists. They will provide you with details for repayment as well as an early payout amount. This is calculated as the sum of the principal amount remaining and accrued interest to the time of early payout and 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work with your cash flow cycle we provide payments that are either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
Protecting your information, 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 you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We employ an exceptionally sophisticated bank verification system that allows you to instantly confirm your bank account information online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner borrows from an asset they own to secure the funding. The asset may be an individual property, such as the family home, or it could be a company property like a truck or piece of equipment.
The majority of banks, even the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, your asset may be offered for sale by the lender. In essence it’s the process of securing new financing by using the worth of the asset you already own.
Are I need security to get a company loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money however, we require a personal guarantee. need an individual guarantee. If you adhere to your loan commitments (as detailed in your loan contract), asset security will never be required. For loans over $150K generally, there is a personal ensure and security in the form of an asset charge.