FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Turramurra Small Business Loans
Let me know more about Turramurra Small Business Loans
Turramurra unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from the traditional company loan?
It is imaginable to apply to your Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the funds could be available in just 24 hours. Traditional business loans reference an annual rate of interest as well as other fees and charges. This company loan is a loan that is priced upfront therefore you’ll know in advance the total amount payable including the interest, fees and charges. Then, it is divided into a daily or weekly payment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business use, including control of cash flow business improvements, advertising, to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal purposes.
Concerning Larger Turramurra Business Loans
What is the Larger Turramurra 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 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan of this size the company needs to have been in operation for at least 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used for almost every company purpose including business improvements, purchasing equipment or inventory or as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. It is usually in the form of a charge on assets, which could also include registration through the PPSR or registering as a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally in nature rather than defining security over an asset. The person signing the guarantee is personally liable in the event that the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted depending on the date that a security interest was registered.
Caveats are legal document lodged to offer an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more, we may offer an initial pre-approval in order to ease the process. It is possible to apply for this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial well-being questions. It is not an offer or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you might receive could have different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the 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 quick and simple. Simply complete the online form within a few minutes and a dedicated company credit specialist will call you to assist you.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, and interim current financial year financials including Aged Payables, Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we usually offer an answer in just one hour, provided you apply within standard company time and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements , we will be able to provide an answer within one business day.
For Larger Business Loans ($100K to $500K) we may be able to offer you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some offers have been approved in the space of 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal company hours, and allow us to use the advance bank verification link to check your bank’s information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour if you apply in normal business time and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements, we’ll be able to offer the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be in a position to offer you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be faster depending on the particular circumstances of each application. Certain transactions have received approval in just 24 hours.
The fastest way would be to ensure you apply during normal business hours and allow us to use our modern bank verification link to instantly check your bank’s information online. If you decide to upload the copies of bank statements it will take a little longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of aspects in order to assess what is the well-being for your business and the extent of the repayments your business can support. The total amount of your loan will be contingent on the specifics the business.
When you apply for a certain amount, we take into consideration a variety of elements to determine the well-being for your company and the level of repayments that your business can afford. The total amount of your loan will depend on the specifics that are unique to your business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request our business credit, we will assess the risk assessment of your company and offer you with a tailored offer, including the amount of the loan, the duration and interest rates. This business loan is an upfront cost loan which means you know in advance the total amount payable including any costs, fees, or interest rates.
What determines the amount I am charged?
Business loan interest rates differ based on various factors such as the amount that is that is borrowed, what company assets the funds will be used for as well as the field the business operates in, how long the company has been in operation for, whether the company has enough cash flow to pay for the loan, and the overall well-being or creditworthiness of the company.
What are the costs?
There are no hidden costs for our business loans. You’ll know exactly how much you’ll be required to pay and when, from the very first day. There’s not any compounding interest and no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to get a cash loan with with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Do I have the option of paying off the loan early?
You may choose to pay back the entire amount of the loan early at any time.
If you choose to pursue this option, please talk to one of our helpful company loan experts. They will provide you with the details of your repayment along with an early payout estimate. This is calculated as the sum of the remaining principal amount and accrued interest to the time of the early payout, plus 1.5% of the principal balance 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 cycle we offer repayments either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is an essential element 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 financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We utilise a sophisticated bank verification system link to instantly confirm your bank account information online, allowing us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner utilises the assets they have to get a loan. The asset may be an asset belonging to the personal, like the family home, or it could be a company asset such as a truck or piece or equipment.
The vast majority of banks, even the big banks, tend to secure loans against assets. If you’re having trouble paying back the loan then the asset might be offered for sale by the lender. In essence, it is an opportunity to secure new funding taking advantage of the value of what you already have.
Do I require security to get an company loan?
For loans up to $150,000 there is no requirement for asset security before you can access the money, however we require a personal guarantee. require an individual guarantee. As long as you follow the terms of your loan (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150,000 generally there is an individual ensure and security that is in the form the charge of assets.