FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Titirangi Small Business Loans
Tell me about the Titirangi Small Business Loans
Titirangi unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from the traditional business loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and funds may be in your account in 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. Our business loan is a pre-paid loan which means you know ahead of time the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business use, including the management of cash flow, business remodels and marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal reasons.
About larger Titirangi Business Loans
What is the Larger Titirangi Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been in operation for at least 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funding for?
A larger company loan can be used to fund almost all business purpose including company renovations, to purchase 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 to obtain funding above $150,000. This can be done as a result of an charge on assets and can be registered with the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is general in nature rather than defining the security of a specific asset. The person signing the ensure is personally accountable if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR grants the priority of personal property granted depending on the date that a security interest that is registered.
An affidavit is an official document lodged to provide an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan of more than $250,000 it is possible to offer an initial pre-approval in order to make the process. We may be able to apply for this without credit checks and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial well-being checks. It is in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you receive could be based on different terms.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (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 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form in few minutes and an experienced company loan specialist will call you to help you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence), an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Information on the application including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim financials from the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we can often provide an answer in just one hour – as long as you apply at standard company times and let us utilise the bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statements , we’ll be able to offer the decision in just one company day.
For Larger Business Loans ($100K and up) we may be able to offer the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the circumstances of each application. Certain offers have been approved within just 24 hours.
The quickest method would be to ensure you apply during standard business hours. Also, allow us to use the advance bank verification link to check your bank’s information online. If you send us duplicates of your banking statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we can often provide a response in one hour, provided you apply in normal business time and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statement, we’ll provide the decision within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be likely to provide you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some offers have been approved within 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours, and allow us to use the advanced bank verification system link to instantly confirm your bank details online. If you choose to upload documents from your account statements it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of factors in order to assess how much we can lend you health of the company and the amount of repayments that your company is able to afford. The total amount of your loan will be contingent on the particular circumstances the business.
If you apply for a specific amount we will consider a number of aspects to assess how much we can lend you such as well-being that is your business and the level of payments your company is able to afford. The total amount of your loan will be determined by the specific circumstances of your company.
Fees & repayments
How much should you charge for an business loan?
If you decide to make an application for our business loan, we’ll assess the risk assessment of your company and offer you with a customised offer that includes the loan amount, the terms and interest rates. It is a business loan is a loan that is priced upfront therefore you will know in advance the total amount due, which includes any charges or interest.
What is the factor that determines the price I’m charged?
Business loan interest rates differ based on various factors like the amount of money that is borrowed, what business assets the money are used to purchase and the sector the company is operating in, how long the business has been running as well as what percentage of the business has enough cash flow to cover the loan, and also the general well-being or financial standing of the business.
What are the cost?
There are no hidden costs for our company loans, and you’ll know exactly how much you need to pay and when, from the first day. There’s not any compounding interest and no extra fees (as as long as you pay your payments punctually).
We do not charge an application fee. You can get a cash loan no cost upfront or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan in advance?
You may choose to pay back all of your loan in full at any time.
If you are deciding to pursue this option, please call our helpful business loan professionals. The professionals will provide you with the details of your repayment and an early payment figure. This is calculated as the sum of the principal remaining and accrued interest to the time of early payout in addition to 1.5% of the principal amount remaining and any fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss payment dates and to align with your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about how we collect, use, exchange and protect your information, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We utilise a sophisticated bank verification system to instantly verify the bank account details online. This allows us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner makes use of an asset they own to make a loan. The asset may be an individual property, such as the family home or a business asset such as a truck or piece of equipment.
The majority of banks, even the big banks, tend to guarantee loans against assets. If you have trouble paying back the loan, then your assets could be sold by the lender. In essence it’s means of securing new funding making use of the value of what you already own.
What do I need security to secure an business loan?
For loans up to $150K the requirement for asset security is not required in advance to gain access to the funds however, we do require a personal guarantee. In the event that you fulfill your loan commitments (as stated in the loan contract), asset security will never be required. If you take out loans in excess of $150,000 generally, you are able to get a personal guarantee and security in the form a charge over assets.