FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Tatachilla Small Business Loans
Let me know how you can avail the Tatachilla Small Business Loans
Tatachilla unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from a traditional business loan?
You can apply for the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and the funds could be in your account within 24 hours. Traditional company loans are based on an interest rate per annum as well as other fees and charges. The company loan is a cash-based loan and you’ll know in advance the total amount payable including the interest, fees and charges. This is then broken down into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business reason, such as cash flow management, company renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
Concerning Larger Tatachilla Business Loans
What is the Larger Tatachilla Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to be in operation for at least 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be utilised?
A larger business loan can be used for almost every company reason, such as company renovations, to purchase inventory or new equipment or as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It is usually by way of charge against assets and can be registered through the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is generally based rather than defining the security for a particular asset. The person who is signing the guarantee is personally liable in the event that the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date the registration of a security interest.
An affidavit is an official document lodged to provide an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger business loans of $250,000 or more we may be able to provide an initial pre-approval in order to ease the process. We may be able to get this done without credit checks and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health questions. It’s not an offer of credit or guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer that you receive could have different conditions.
The application process
Do I have the right to receive funds?
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 company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a couple minutes, and an experienced company loan specialist will contact you to assist you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application details 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 and 12 months of bank records, IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour, provided you apply at quality business time and allow us to utilise the bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements , we will be able to offer an answer within just 1 business day.
For Larger Business Loans ($100K to $500K) we may be in a position to provide you with pre-approval conditional to your application within about 6 hours. Once 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 circumstances of each application. Some agreements have been approved within 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. You can also allow us to use the advanced bank verification system to verify your bank information online. If you choose to send us duplicates of your banking statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) we usually offer a response in one hour – provided you submit your request during standard business timings and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you choose to send us copies of your bank statement, we’ll provide a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we could be in a position to provide you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Some deals have been approved in the space of 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours and allow us to use the advanced bank verification system to verify your bank information online. If you choose to send us duplicates of your banking accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a specific amount we look at a variety of aspects to determine what is the health for your business and the level of repayments your company can afford. The amount you receive from your loan will depend on the specific circumstances of your company.
When you submit an application for a set amount, we take into consideration a variety of factors to determine your well-being of the business and the level of payments your company can support. The total amount of your loan will depend on the particulars that are unique to your business.
Fees & repayments
How do you charge for the cost of a business loan?
When you apply for business loans with us company credit, we’ll assess the risk assessment of your company and provide an individualised offer, including the loan amount, the terms and interest rates. It is a business loan is an upfront priced loan therefore you will know the exact amount due, which includes any costs, fees, or interest rates.
What determines the amount I pay?
Interest rates for business loans rates differ based on various variables like the amount to be that is borrowed, what business assets the money will be used for, the industry the business operates in, how long the business has been in operation for, whether the business has enough cash flow to pay for the loan, and also the overall health and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our business loans. You’ll know exactly how much it is that you need to pay and when, right from day one. There’s no compounding interest, and no extra fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You are able to apply for a loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan early?
You can decide to repay the total amount of your loan in full at any time.
If you decide to take this route, please talk to one of our helpful company lending specialists. They will offer you with details for repayment along with an early payout estimate. This will be calculated as the sum of the principal amount remaining and any accrued interest at the time of early payout and 1.5 percent of the remaining principal as well as any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear how we collect, use, exchange and safeguard your data, is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and security. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account information online to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner utilises assets they own to secure the funds for a loan. The asset may be an individual property, such as the family home or an business asset such as a vehicle or other piece of machinery.
The vast majority of banks, not just the largest banks, are inclined to guarantee loans against assets. If you are having difficulty paying back the loan then the asset might be taken over by the lender. In essence it is a way of securing new financing making use of the value of what you already have.
What do I need security to secure a business loan?
Up to $150,000 in loans the requirement for asset security is not required before you are able to access the money however, we require a personal guarantee. need an individual guarantee. If you adhere to your loan obligations (as detailed in your loan contract document) Asset security is not required. For loans that exceed $150K, generally, you can get the option of a personal guarantee and security in the form of a charge over assets.