FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Tennyson Small Business Loans
Let me know how you can avail the Tennyson Small Business Loans
Tennyson unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
The application to the Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and the money could be in your account within 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. This company loan is a cash-based loan and you’ll be aware in advance of the total amount to be paid, including any fees, charges or charges. Then, it is broken down into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every company purpose including the management of cash flow, business improvements, advertising, to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal purposes.
About larger Tennyson Business Loans
What is the Larger Tennyson Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been operating for a minimum of 3 years, and have an annual income of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (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 use, including business improvements, purchasing new equipment or inventory, as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. This can be done by way of charge over assets and can be registered in the PPSR or the registration of as a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is generally based rather than stating the security for a particular asset. The person who is signing the ensure is personally accountable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal form of document to offer the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger company loans that exceeds $250K we can offer an initial pre-approval in order to smooth out the process. We may be able to make this decision without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes you answering some financial health questions. This is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you may receive may be on different terms.
Application process
Do I qualify for funds?
You may apply for a business 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)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a few minutes and a dedicated company credit specialist will be in touch to guide you.
To apply for up $100,000, you’ll need ID details (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent, 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim financial statements for the current year such as age-related payables and aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within one hour – as long as you submit your request during quality company hours and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements , we will be able to provide the decision in just the span of one business day.
For the Larger Business Loan ($100K to $500K) we might be in a position to provide you with conditional pre-approval within 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Some agreements have been approved in the space of 24 hours.
The most efficient method can be ensure you apply during normal business hours and allow us to use the advanced bank verification system to instantly verify your bank account information online. If you opt to upload copies of your bank statement, it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour, provided you apply at normal business time and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll provide an answer in just one business day.
If you are applying for Larger Business Loans ($100K or more) we may be capable of provide you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain agreements have been approved in just 24 hours.
The most effective method can be ensure you apply during standard business hours. You can also let us use the advance bank verification link to instantly verify your bank information online. If you choose to send us copies of your bank statements it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a particular amount, we consider a variety of aspects in order to assess your well-being of the business and the amount of the repayments your business can afford. The amount you receive from your loan will depend on the specifics of your company.
If you apply for a particular amount, we will consider a number of aspects to determine your well-being of the business and the level of the repayments your company can support. The amount you receive from your loan will be determined by the particular circumstances the business.
Fees & repayments
How do you charge for an business loan?
If you decide to apply for business loans with us company loans, we will assess the risk assessment of your company and provide you with a customised offer that includes the loan amount, the terms and the interest rates. The business loan is a loan that is priced upfront and you’ll know in advance the total amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on several variables like the amount to be that is borrowed, what business assets the money will be used for, the industry the business operates in, the long the business has been in operation, how long the business has sufficient cash flow to cover the loan, as well as the general well-being or financial standing of the company.
What are the cost?
There aren’t any hidden charges for our company loans. You’ll know precisely what it is that you need to pay and when, from the first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We don’t 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 covers the costs associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back the total amount of your advance loan at any time.
If you are deciding to take this route, please call our helpful business loan specialists. They will offer you with details for repayment along with an early payout estimate. The figure will be calculated as the total of the principal balance and any accrued interest at the time of early payout and 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payment dates and to align your cash flow schedule, we provide repayments either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about the ways we gather the information we collect, use, share and secure your information, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We make use of an advanced bank verification system to immediately verify your bank account details online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the business owner makes use of an asset that they own to secure a loan. The asset can be a personal asset like the family home or an company asset like a truck or piece or equipment.
The majority of banks, not just the big banks, tend to guarantee loans against assets. If you’re having trouble paying back the loan then your assets could be offered for sale by the lender. In essence, it is a way of securing new financing by using the worth of the asset you already own.
Should I need 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 an individual guarantee. So long as you comply with your loan commitments (as detailed in your loan contract document) Asset security is not needed. For loans over $150,000 typically, you will need an individual ensure and security in the form an asset charge.