FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Tynong Small Business Loans
Tell me more about Tynong Small Business Loans
Tynong unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from the traditional business loan?
Apply to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and have the funds on your account within 24 hours. Traditional company loans refer to an interest rate per annum together with additional fees and charges. This business loan is a loan that is priced upfront which means you be aware of the total amount to be paid, including any fees, interest or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business use, including the management of cash flow, company remodels and marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Tynong Business Loans
What is the Larger Tynong Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been operating for a minimum of 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funds for?
A large company loan is a great option for almost all company purpose including company improvements, purchasing equipment or inventory, as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It’s by way of charge on assets, and could include the registration of this on the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature rather than stipulating security over an asset. The person who is signing the ensure is personally responsible if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date the security interest was registered.
Caveats are legal form of document to provide the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250,000 it is possible to offer an initial pre-approval that will help smooth out the process. We may be able to get this done without credit checks and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial health checks. This is in no way an offer, nor is it a 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
Are I eligible for funding?
You may apply for an company 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’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Complete the online form in few minutes and a dedicated business loan specialist will be in touch to guide you through the process.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence), a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank statements, IRD statements, last 2 years finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour – as long as you submit your request in standard business hours and allow us to utilise the bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements , we are able to offer a decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K and up) we could be capable of provide you with conditional pre-approval within about 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, it could be faster based on the particular circumstances of each application. Some deals have been approved within the space of 24 hours.
The quickest way to apply is to make sure you apply during standard business hours. Also, allow us to use the advanced bank verification system link to check your bank’s information online. If you send us copies of your bank statements , it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we usually provide an answer within one hour – provided you apply in standard business hours and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statement, we’ll provide the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K and up) we may be likely to provide the conditional pre-approval in about six hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be faster depending upon the circumstances for each application. Some transactions have received approval in just 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. Also, allow us to use our advanced bank verification system link to check your bank’s information online. If you decide to upload copies of your bank statements it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a particular amount, we consider a variety of factors for determining what is the well-being of the company and the extent of repayments that your business will be able to support. The total amount of your loan will depend on the particular circumstances the company.
When you make an application for a particular amount, we consider a variety of aspects to determine the health of your business and the level of the repayments your company will be able to support. The amount you receive from your loan will depend on the particulars of your business.
Fees & repayments
How much do you charge for an business loan?
When you make an application for one of our company loan, we will assess the risk assessment that you have for your business and offer an individualised offer that includes the amount of loan, the term and the interest rates. This business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount payable including any charges or interest.
What is the factor that determines the price I pay?
The interest rates on business loans rates depend on several variables like the amount to be of money borrowed, the company assets the money are used to purchase and the sector the company is in, how long the company has been in operation for, how long the business has sufficient cash flow to cover the loan, and also the overall well-being or creditworthiness of the company.
What are the costs?
There are no hidden fees with our company loans, and you’ll know precisely how much it is that you be required to pay and when, starting from day one. There’s no compounding and no extra fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You can make an application for loans with with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan in advance?
You may choose to pay back the total amount of your loan at any point in time.
If you choose to take this route, please call our helpful business credit specialists. We will offer you with repayment details and an early payout figure. The figure will be calculated as the total of the principal amount remaining and the accrued interest up to the time of the early payout plus 1.5% of the remaining principal plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work with your cash flow standard, we offer repayments that are either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about how we collect data, process, exchange and secure your information, is of huge importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account details online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner uses an asset they own to secure a loan. The asset can be a personal asset like the family home or an company asset like a truck or piece of equipment.
The majority of lenders, not just the big banks, tend to make loans secured by assets. If you have trouble paying back the loan then the asset might be sold by the lender. In essence, it is means of securing additional financing making use of the value of what you already own.
What do I require security for an business loan?
For loans of up to $150K, it is not necessary to secure assets before you can access the money but we do require the personal guarantee. So long as you comply with the terms of your loan (as stated in the loan contract) the security of assets will never be required. For loans of over $150K typically, you will need a personal ensure and security is provided in the form of a charge over assets.