FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Teneriffe Small Business Loans
Tell me what you think of the Teneriffe Small Business Loans
Teneriffe unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
The application to get the Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and the funds could be on your account within 24 hours. Traditional company loans reference an annual interest rate along with other charges and fees. We offer a company loan is a cash-based loan therefore 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 a daily or weekly repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business need, such as managing cash flows, business improvements, advertising, to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal use.
About larger Teneriffe Business Loans
What is the Larger Teneriffe Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large the business needs to be operating for a minimum of 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A large company loan can be used for nearly any company purpose including business remodeling, buying new equipment or inventory or as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This is in the form of a charge against assets and can include registering this in the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature, rather than stating security over an asset. The person signing the ensure is personally accountable if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR permits preference over private property assigned depending on the date that a registration of a security interest.
A caveat is a legal document that is filed to offer notice of a legal claim to property.
What is a pre-approval minus Credit Check?
When you’re applying for a Larger Business Loan of $250K or more it’s possible to offer an initial pre-approval to simplify the process. We may be able to apply for this without a credit check and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial health questions. It is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject a full credit assessment and any offer you might receive could be based on different conditions.
The application process
Can I be eligible for funding?
You can apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form in few minutes and a dedicated company credit specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s License) and an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Information about the 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, 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) We can usually offer a response in one hour – as long as you make your application within standard company times and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements we can offer the decision within just an company day.
For Larger Business Loans ($100K to $500K) we could be likely to provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the circumstances of each application. Certain transactions have received approval within less than 24 hours.
The most effective method is to make sure you apply during standard company hours. Also, allow us to use our advanced bank verification system link to check your bank’s information online. If you decide to send us documents from your account statements it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we can often offer an answer within an hour if you make your application at normal business timings and let us use the bank verification system link to instantly verify your bank details online. If you opt to submit copies of your bank statement, we’ll provide a decision in just one business day.
For Larger Business Loans ($100K to $500K) we could be capable of provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved within 24 hours.
The most efficient method is to make sure you apply during normal business hours. Also, allow us to use the sophisticated bank verification link to instantly verify your bank account information online. If you decide to upload duplicates of your banking statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a particular amount, we look at a variety of aspects in order to assess what is the well-being that is your company as well as the amount of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances the company.
When you apply for a specific amount we consider a variety of factors to determine the health of your company as well as the amount of repayments your company will be able to support. The total amount of your loan will be contingent on the specific circumstances for your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for the business loans, we’ll assess the risk profile the company and offer you with a customised proposal that includes the amount of loan, the term and the interest rates. It is a business loan is an upfront cost loan and you’ll know in advance the total amount payable including any interest rates, fees or charges.
What determines the rate that I am charged?
Business loan interest rates vary due to variables like the amount to be that is borrowed, what company assets the funds will be used for and the sector the company is in, how long the company has been operating, what percentage of the company has enough cash flow to cover the loan, and the general health and creditworthiness of the company.
What are the fees?
There are no hidden costs for our company loans. You’ll know precisely what you’ll be required to pay and when, from day one. There’s no compounding interest, and no extra fees (as long as you make your payments punctually).
We don’t charge an application fee. You are able to get a cash loan with without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan in advance?
You may choose to pay back the total amount of your loan in full at any time.
If you do decide to take this route, please speak to our friendly company loans experts. They’ll provide you with repayment details and an early payment figure. This is calculated as the sum of the principal amount remaining and any accrued interest at the time of early payout, plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we provide payments that are either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear how we collect data, process, exchange and secure your information, is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We use an advanced bank verification system that allows you to immediately confirm your bank account information online to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from an asset that they own to make a loan. The asset may be a personal asset like the family home, or an company asset like a truck or other piece of machinery.
The vast majority of lending institutions, including the largest banks, are inclined to guarantee loans against an asset. If you are having difficulty paying back the loan then your asset may be taken over by the lender. In essence it is an opportunity to secure new financing by using the worth of the asset you already own.
Are I require security for a business loan?
For loans that exceed $150,000, it is not necessary to secure assets before you are able to access the money, however we require a personal guarantee. need a personal guarantee. As long as you follow your loan commitments (as stipulated in the loan contract) the security of assets is not required. For loans that exceed $150,000, generally there is the option of a personal guarantee and security in the form an asset charge.