FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Thorngate Small Business Loans
Let me know about the Thorngate Small Business Loans
Thorngate unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and the funds could be on your account within 24 hours. Traditional business loans have an annual rate of interest along with other charges and fees. The business loan is a loan that is priced upfront which means you know in advance the total amount to be paid, including any interest, fees or charges. This is then broken down into either a daily or weekly installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost any company use, including managing cash flows, business remodeling, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
Concerning Larger Thorngate Business Loans
What is the Larger Thorngate Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to be operating for a minimum of 3 years and have an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be used for?
A large company loan is a great option for almost every business purpose including company renovations, to purchase new equipment or inventory for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This is by way of charge on assets, and may include registration on the PPSR or filing a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally in nature rather than specifying security over a particular asset. The person who is signing the guarantee is personally liable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR gives the priority of personal property granted depending on the date that a security interest that is registered.
The caveat can be described as a formal document lodged to provide notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000, we may offer a preliminary pre-approval to help smooth out the process. We may be able to make this decision without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial health checks. It’s in no way an offer, nor is it a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you receive could be based on different conditions.
Application process
Do I qualify for funds?
You may apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a couple minutes, and an experienced company credit specialist will call you to guide you through the process.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s License) and an NZBN/IRD that is valid and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details for application including credit consent, 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we can often provide an answer in just one hour – as long as you make your application in standard business times and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements we can provide a decision in just 1 business day.
For the Larger Business Loan ($100K to $500K) we may be likely to offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Certain deals have been approved in the space of 24 hours.
The most efficient method can be make sure you apply during standard business hours. Also, let us use the advance bank verification to check your bank’s information online. If you choose to upload duplicates of your banking statements , it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within an hour if you apply in standard business time and let us use the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statement, we’ll provide a decision in just the span of one business day.
For the Larger Business Loans ($100K and up) we may be capable of provide the conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Certain deals have been approved within the space of 24 hours.
The fastest way would be to ensure you apply during standard business hours and allow us to use our sophisticated bank verification to verify your bank information online. If you opt to upload documents from your account accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we will consider a number of factors for determining the health for your company and the amount of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specifics that are unique to your business.
When you submit an application for a certain amount, we take into consideration a variety of factors to assess how much we can lend you such as well-being of your company as well as the amount of repayments that your company will be able to support. The amount you receive from the loan will be determined by the particulars the company.
Fees & repayments
How much do you charge for an business loan?
If you decide to apply for our business financing, we will assess the risk profile for your company and provide you with a customised proposal that includes the loan amount, the terms and interest rates. The business loan is a loan that is priced upfront and you’ll know the exact amount payable including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
Interest rates for company loans rates depend on a variety of variables like the amount to be borrowed, the company assets the funds are used to purchase and the sector the business operates in, the long the company has been operating as well as in the event that the business has enough cash flow to support the loan, and also the general well-being or financial standing of the company.
What are the charges?
There aren’t any hidden costs with our company loans, and you’ll be aware of the amount it is that you be required to pay, and when, right from day one. There’s no compounding 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 without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of 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 amount of the loan.
Can I repay the loan earlier?
You can decide to repay all of your loan early at any time.
If you decide to take this route, please call our helpful business lending professionals. They will provide you with details for repayment and an early payout figure. It will be calculated using the sum of the remaining principal amount and any accrued interest at the time of the early payout in addition to 1.5 percent of the remaining principal plus any outstanding fees.
How do repayments work?
To ensure you do not miss due dates and also to be in line with your cash flow general, we provide payments that are either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and safeguard your data, is crucial and is an essential 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 personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We make use of an advanced banking verification system to immediately confirm your bank account information online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of an asset they own to make the loan. The asset can be an individual asset, such as the family home, or a business asset such as a truck or piece of equipment.
The majority of lenders, not just the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan, the asset might be transferred to the lender. In essence it’s an opportunity to secure new financing using the value of what you already have.
Should I need security for an company loan?
Up to $150K in loans there is no requirement for asset security before you are able to access the money, however we do require an individual guarantee. As long as you follow your loan commitments (as stated in the loan contract) Asset security will never be required. For loans of over $150K typically, you will need a personal ensure and security is provided in the form of charges on assets.