FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Tallai Small Business Loans
Let me know more about Tallai Small Business Loans
Tallai unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from a traditional business loan?
The application to get this Small Business Loan in under 10 minutes over the phone, receive an instant response and the funds could be on your account within 24 hours. Traditional business loans are based on an annual interest rate plus other fees and charges. Our business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. Then, it is broken down into either a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company purpose including managing cash flows, company remodels and marketing to purchase inventory, new equipment, as general working capital and much more. The loan is not available for personal use.
About larger Tallai Business Loans
What is the Larger Tallai Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to be in operation for at least 3 years and generate an annual revenue of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly every business need, including business remodeling, buying equipment or inventory for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This can be done by way of charge on assets, which could also include the registration of this on the PPSR or making as a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature rather than specifying the security for a particular asset. The person signing the guarantee is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR permits the priority of personal property granted in accordance with the date on which a security interest was registered.
The caveat can be described as a formal document filed to provide the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger business loans of $250K or more, we may offer an initial pre-approval that will help simplify the process. We may be able to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial health questions. It is neither an offer nor a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could have different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a few minutes and a dedicated company loan specialist will call you to assist you.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we usually provide an answer within one hour – as long as you apply in quality company time and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statements we can provide the decision in just one company day.
For the Larger Business Loan ($100K or more) we might be in a position to provide you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain offers have been approved in 24 hours.
The fastest way is to make sure you apply during normal business hours. Also, permit us to use the modern bank verification to instantly confirm your bank details online. If you choose to send us 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 a response in one hour – provided you make your application at normal business timings and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements, we are able to provide an answer within an business day.
If you are applying for Larger Business Loans ($100K and up) we may be capable of offer you with a conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved within the space of 24 hours.
The most efficient method is to ensure you apply during standard business hours and allow us to use the sophisticated bank verification link to verify your bank information online. If you opt to upload copies of your bank accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a certain amount, we look at a variety of variables that determine how much we can lend you well-being of the company and the amount of the repayments your company can support. The total amount of your loan will be contingent on the particular circumstances the company.
When you submit an application for a particular amount, we consider a variety of elements to determine your well-being that is your company as well as the amount of repayments that your business can support. The amount you receive from the loan will be determined by the specific circumstances of your business.
Fees & repayments
What is the cost for the cost of a company loan?
When you make an application for one of our company credit, we will assess the risk profile that you have for your business and provide you with a customised offer including the amount of loan, the term and the interest rates. The business loan is an upfront-priced loan and you’ll know in advance the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I am charged?
Interest rates for business loans rates differ based on various factors such as the amount that is of money borrowed, the company assets the funds are used to purchase as well as the field the company is operating in, how long the business has been running for, what percentage of the business has sufficient cash flow to fund the loan, and the general well-being or creditworthiness of the business.
What are the charges?
There are no hidden costs with our business loans. You’ll know precisely what you’ll be required to pay, and when, starting from day one. There’s no compounding interest and no extra fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can request a credit loan with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of the loan at any point in time.
If you choose to do this please talk to one of our helpful company lending specialists. They’ll provide you with details for repayment as well as an early payout amount. It will be calculated using the total of the remaining principal amount and accrued interest to the date of early payout and 1.5% of the principal remaining plus any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing how we collect information, use it, and exchange it, as well as protect your information, is of paramount importance and a vital aspect 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 personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We use an advanced banking verification system to immediately verify the bank account details online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner makes use of assets they own to get the funds for a loan. The asset may be an asset belonging to the personal, like the family home or a company asset such as a vehicle or piece or equipment.
The vast majority of lenders, even the major banks, prefer to secure loans against an asset. If you have trouble paying back the loan, then the asset might be sold by the lender. In essence it’s means of securing additional financing using the worth of the asset you already have.
Are I need security to secure a company loan?
Up to $150,000 in loans there is no requirement for asset security prior to the loan’s access However, we require a personal guarantee. require a personal guarantee. In the event that you fulfill your loan obligations (as stipulated in your loan contract document) Asset security will never be required. For loans of over $150,000 generally, there is a personal guarantee and security that is in the form an asset charge.