FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Tatachilla Small Business Loans
Tell me more about Tatachilla Small Business Loans
Tatachilla unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary business loan?
You can apply for your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and the money could be available in just 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. This business loan is a loan that is priced upfront so you will know ahead of time the total amount to be paid, including any fees, charges or charges. This is then divided into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business reason, such as the management of cash flow, business improvements, advertising to purchase inventory, new equipment, to fund general working capital, and much more. The loan is not available for personal reasons.
About larger Tatachilla Business Loans
What is the Larger Tatachilla Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the company needs to be in operation for at least 3 years with an annual turnover of $700,000. The applicant must also 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 least 12 months of trading.
How can the funding be used for?
A larger company loan can be used for almost every business reason, such as company renovations, to purchase equipment or inventory, as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It’s by way of charge on assets and can be registered with the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally in nature rather than stipulating the security for a particular asset. The person who signs the guarantee is personally liable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run 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 gives preference over private property granted according to the date a security interest was registered.
An affidavit is an official form of document to provide notice of a legal claim to property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan of $250,000 or more it’s possible to offer a preliminary pre-approval to help ease the process. We could be able to apply for this without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health questions. This is not an offer of credit or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you may receive may be on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for the 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 business loan specialist will contact you to guide you through the process.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s Licence), a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent twelve months bank statement, an IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often provide an answer in just one hour, provided you make your application in standard company time and you allow us to utilise the bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements , we are able to provide an answer within just one company day.
If you are applying for a Larger Business Loan ($100K or more) we might be capable of offer you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain transactions have received approval in 24 hours.
The quickest method can be make sure you apply during standard business hours, and allow us to use our advance bank verification to instantly verify your bank information online. If you choose to upload duplicates of your banking statements , it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) We can usually offer an answer within one hour – as long as you make your application within standard business time and you allow us to use the bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statement, we’ll offer an answer within an business day.
If you are applying for Larger Business Loans ($100K or more) we may be able to offer you with a conditional pre-approval in around six hours. Once you’ve signed your 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. Some deals have been approved within the space of 24 hours.
The fastest way would be to ensure you apply during normal business hours. Also, permit us to use the modern bank verification to check your bank’s information online. If you decide to upload duplicates of your banking statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a certain amount we will consider a number of aspects for determining how much we can lend you well-being for your company and the amount of the repayments your business can support. The amount you receive from your loan will depend on the specifics that are unique to your company.
If you apply for a specific amount we consider a variety of elements to assess how much we can lend you such as health of the company as well as the amount of the repayments your business will be able to support. The amount you receive from the loan will be determined by the particular circumstances that are unique to your business.
Fees & repayments
What is the cost for an business loan?
When you request the business loans, we’ll assess the risk assessment the business and offer you with a tailored offer that includes loan amount, term and interest rates. It is a company loan is an upfront-priced loan which means you be aware in advance of the total amount due, which includes any charges or interest.
What determines the amount I will be charged?
Interest rates for business loans rates depend on several factors such as the amount that is borrowed, what business assets the funds will be used for, the industry the company operates in, how long the business is in operation for, what percentage of the business has sufficient cash flow to cover the loan, and also the general health and creditworthiness of the business.
What are the fees?
There are no hidden costs for our company loans. You’ll know precisely how much you be required to pay and at what time, from the day you sign up. There’s no compounding interest, and there are no additional charges (as as you make your payments on time).
We do not charge an Application Fee. You can apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back all of your loan in full at any time.
If you decide to do this please speak to our friendly business loans experts. The specialists will provide you with the details of your repayment and an early payment figure. This will be calculated as the total of the principal balance and accrued interest to the time of the early payout and 1.5 percent of the principal balance as well as any outstanding fees.
What is the process for repayments?
To ensure you do not miss payments and to work your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being transparent about how we collect information, use it, and exchange it, as well as safeguard your data, is of huge importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We utilise a sophisticated bank verification system that allows you to instantly confirm your bank account information online. This allows us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner makes use of the assets they have to secure the funds for a loan. The asset could be an individual asset, such as the family home, or an business asset like a truck or piece of equipment.
The vast majority of lending institutions, even the major banks, prefer to secure loans against assets. If you’re struggling to pay back the loan then your assets could be sold by the lender. In essence, it is the process of securing new financing using the worth of the asset you already own.
Do I need security to secure an business loan?
For loans of up to $150,000, the requirement for asset security is not required upfront to access the money however, we do require a personal guarantee. As long as you follow your loan commitments (as detailed in the loan contract), asset security will never be needed. For loans over $150,000 generally, you are able to get an individual guarantee and security that is in the form a charge over assets.