FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Tallai Small Business Loans
Tell me more about Tallai Small Business Loans
Tallai unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from the traditional company loan?
Apply to this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and have the funds available in just 24 hours. Traditional business loans refer to an annual interest rate along with other charges and fees. The business loan is a pre-paid loan and you’ll know in advance the amount you will have to pay, including the interest, fees and charges. This is then 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 virtually any business purpose including control of cash flow company remodels and marketing to purchase inventory, new equipment, as general working capital and so much more. The loan cannot be used to fund personal expenses.
About Larger Tallai Business Loans
What is the Larger Tallai Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
A 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 of this size, your business needs to have been operating for at least three years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funds for?
A large business loan can be used for nearly any company purpose including business improvements, purchasing equipment or inventory for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It is usually in the form of a charge against assets, and could include the registration of this in the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to repay a loan which is general in nature, rather than stating security over an asset. The person signing the guarantee is personally liable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted in accordance with the date on which a security interest has been registered.
An affidavit is an official document filed to provide the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan of more than $250K, we may offer an initial pre-approval to simplify the process. It is possible to get this done without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial health questions. It’s not an offer of credit or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you might receive could be on different terms.
The 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 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 the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Complete the online form in few minutes and an experienced business loan specialist will contact you to guide you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour, provided you apply at standard company time and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statements we can offer the decision within one business day.
For the Larger Business Loan ($100K or more) we may be in a position to offer you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be quicker based on the specifics of each application. Some offers have been approved within 24 hours.
The fastest way can be ensure you apply during normal business hours. You can also let us use the advanced bank verification system to instantly verify your bank account information online. If you opt to send us documents from your account statement, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour – provided you submit your request in standard business hours and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements, we are able to provide the decision in just one business day.
For Larger Business Loans ($100K to $500K) We may be able to offer the conditional pre-approval within 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Certain transactions have received approval within 24 hours.
The fastest method is to ensure you apply during normal business hours. You can also allow us to use our sophisticated bank verification link to verify your bank information online. If you choose to send us copies of your bank accounts, it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we look at a variety of variables to determine what is the health of your business and the amount of repayments your business can afford. The total amount of your loan will depend on the particular circumstances for your business.
If you apply for a specific amount we take into consideration a variety of aspects to assess the health for your company and the extent of the repayments your company is able to afford. The amount you receive from the loan will be determined by the specific circumstances for your company.
Fees & repayments
How do you charge for a company loan?
When you request one of our business loans, we’ll assess the risk assessment for your business and offer you with a tailored offer that includes the amount of loan, the term and interest rates. This company loan is a loan that is priced upfront therefore you will know the exact amount payable including any charges, interest rates or fees.
What is the factor that determines the price I pay?
Interest rates for company loans rates depend on a variety of factors including the amount of money borrowed, the company assets the funds are used to purchase, the industry the business is in, how long the business has been running for, in the event that the company has enough cash flow to support the loan, and also the general well-being or financial standing of the business.
What are the costs?
There are no hidden costs with our company loans, and you’ll be aware of the amount you’ll be required to pay and at what time, from day one. There’s no compounding and there are no additional charges (as as you make your payments in time).
We do not charge an Application Fee. You are able to make an application for loans with without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan earlier?
You can decide to repay the total amount of your loan at any point in time.
If you are deciding to pursue this option, please talk to one of our helpful company loan professionals. We will offer you with details for repayment as well as an early payout amount. This is calculated as the total of the principal amount remaining and any accrued interest at the time of early payout plus 1.5% of the principal amount remaining and any fees that remain unpaid.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow routine, we offer repayments either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear how we collect the information we collect, use, share and protect your information, is crucial and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We use an advanced bank verification system to immediately verify the bank account details online to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner utilises the assets they have to secure the loan. The asset can be either a personal asset like the family home or it could be a business asset like a truck or other piece of machinery.
The vast majority of banks, including the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan, the asset might be sold by the lender. In essence, it is means of securing new financing by taking advantage of the value of what you already own.
Should I require security to get an company loan?
For loans up to $150K the requirement for asset security is not required in advance to gain access to the funds However, we require a personal guarantee. need the personal guarantee. In the event that you fulfill the loan terms (as specified in your loan contract) the security of assets will never be needed. If you take out loans in excess of $150K generally, you are able to get a personal guarantee and security that is in the form the charge of assets.