FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Tamarama Small Business Loans
Let me know more about Tamarama Small Business Loans
Tamarama unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
The application to get the Small Business Loan in under 10 minutes by phone. You will receive an instant response and the money could be in your account in 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. The company loan is an upfront priced loan and you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business purpose including control of cash flow business renovations, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal use.
About larger Tamarama Business Loans
What is the Larger Tamarama Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the company needs to have been operating for a minimum of 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funds for?
A large company loan can be used to fund almost every company purpose including business renovations, purchase of new equipment or inventory or as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This can be done as a result of an charge over assets, and may include registration with the PPSR or the registration of as a caveat.
A director’s or personal ensure is a promise to pay off a credit line that is general in nature rather than defining the security for a particular asset. The person who is signing the ensure is personally liable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR permits priority over personal property to be granted in accordance with the date on which a security interest has been registered.
A caveat is a legal form of document to offer an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans that is greater than $250,000 we may be able to provide an initial pre-approval in order to make the process. We may be able to apply for this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial well-being questions. It’s neither an offer nor a guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer you may receive may be based on different conditions.
Application process
Are I eligible for funding?
You may be eligible for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Complete the online form within a few minutes and a dedicated business loan specialist will contact you to help you.
To apply for up $100,000 you’ll need identification details (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details 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 as well as Aged Payables and Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we usually offer a response in one hour if you make your application at standard business times and allow us to use the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statements , we’ll be able to offer a decision in as little as an company day.
For the Larger Business Loan ($100K and up) we could be able to provide the conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Some offers have been approved in 24 hours.
The fastest way for you to apply is ensure you apply during normal company hours and let us use the advanced bank verification system to verify your bank information online. If you choose to upload copies of your bank statements it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour, provided you make your application at normal business time and permit us to use the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements, we will be able to provide a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be able to provide you with conditional pre-approval within about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some deals have been approved in the space of 24 hours.
The fastest way can be ensure you apply during standard business hours, and let us use the sophisticated bank verification link to instantly confirm your bank details online. If you send us documents from your account statement, it will take a little longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of elements that determine your health that is your business as well as the amount of the repayments your company can support. The total amount of your loan will depend on the specifics of your company.
When you make an application for a certain amount, we take into consideration a variety of factors to assess how much we can lend you such as health of the business as well as the amount of repayments that your company can afford. The amount you receive from your loan will be contingent on the particular circumstances of your business.
Fees & repayments
How much should you charge for a business loan?
When you make an application for the business loans, we’ll assess the risk profile for your business and provide an individualised offer that includes loan amount, term and interest rates. A business loan is a loan that is priced upfront which means you know in advance the total amount you will have to pay, including charges, interest rates or fees.
What is the factor that determines the price I will be charged?
Business loan interest rates vary due to factors such as the amount that is that is borrowed, what company assets the money are used to purchase, the industry the company is operating in, how long the company is in operation for, what percentage of the company has sufficient cash flow to pay for the loan, and also the general well-being and creditworthiness of the business.
What are the costs?
There are no hidden fees for our business loans. You’ll know precisely what you need to pay, and when, right from day one. There’s no compounding and no additional fees (as long as you are able to make your payments in time).
We do not charge an Application Fee. You are able to get a cash loan with no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan early?
You can repay the entire amount of your advance loan at any time.
If you decide to take this route, please speak to our friendly business lending experts. They will provide you with details for repayment as well as an early payout amount. This is calculated as the sum of the principal remaining plus any accrued interest as of the date of early payout, plus 1.5 percent of the principal balance and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear the ways we gather information, use it, and exchange it, as well as protect your information, is vital and an integral 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 techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated bank verification system that allows you to instantly verify your bank account information online, allowing us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner borrows from assets they own to obtain the loan. The asset can be either an individual property, such as the family home or a company property like a truck or other piece of machinery.
The majority of lenders, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan, your assets could be taken over by the lender. In essence it’s a way of securing additional financing making use of the value of what you already have.
Do I need security for a business loan?
For loans that exceed $150,000, no asset security is required before you can access the money, however we do require a personal guarantee. As long as you follow your loan obligations (as specified in your loan contract document) the security of assets is not required. If you take out loans in excess of $150K generally there is a personal guarantee and security is provided in the form of charges on assets.