FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Tennyson Small Business Loans
Tell me about the Tennyson Small Business Loans
Tennyson unsecured loans provides amounts 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 makes the Unsecured Loan different from a traditional business loan?
Apply for the Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and have the funds in your account in 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. We offer a company loan is an upfront priced loan so you will know ahead of time the total amount payable including any fees, charges or charges. Then, it is broken down into either weekly or daily installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any business purpose including the management of cash flow, company improvements, advertising to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
About larger Tennyson Business Loans
What is the Larger Tennyson Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term with a maximum of 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, which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to be operating for at least three years with an annual turnover of $700,000. 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 of proving at minimum 12 months of continuous trading.
How can the funds be utilised?
A larger company loan can be used for nearly all business need, including business renovations, to purchase inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. It is usually as a result of an charge against assets, which could also include registration in the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is general in nature rather than defining the security of a specific asset. The person who is signing the guarantee is personally accountable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including the assets or goods). The PPSR permits the priority of personal property assigned according to the date a security interest that is registered.
Caveats are legal document that is filed to offer notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan of more than $250K, we may offer an initial pre-approval that will help simplify the process. We might be able to make this decision without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial well-being checks. It is not an offer of credit or guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer you may receive may have different conditions.
Application process
Can I be eligible for funding?
You may apply 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)
- must show at least six months of trading (for the 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. Simply complete the online form in few minutes and a dedicated business lending specialist will call you to guide you.
To apply for up to $100,000 you’ll require ID details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within an hour, provided you submit your request within standard business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements , we are able to offer a decision within just 1 company day.
For the Larger Business Loan ($100K and up) we might be able to offer the conditional pre-approval within six hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Certain deals have been approved within just 24 hours.
The fastest way can be ensure you apply during normal company hours and allow us to use the advance bank verification to instantly verify your bank information online. If you opt to send us copies of your bank statement, it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour if you apply within normal business times and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your banking statement, we’ll offer the decision within the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we could be capable of provide you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved within the space of 24 hours.
The quickest method is to make sure you apply during standard business hours. Also, permit us to use the modern bank verification to instantly confirm your bank details online. If you decide to upload documents from your account statement, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of factors for determining your well-being of your company as well as the amount of the repayments your business can afford. The amount you receive from your loan will depend on the specifics that are unique to your business.
When you make an application for a particular amount, we take into consideration a variety of elements to determine how much we can lend you such as health of your company as well as the amount of the repayments your business will be able to support. The amount you receive from your loan will depend on the specifics the business.
Fees & repayments
How much do you charge for a business loan?
When you apply for our company loan, we’ll assess the risk profile of your company and provide an individualised offer, including the amount of the loan, the duration and interest rates. The business loan is an upfront priced loan therefore you will know in advance the total amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I’m charged?
The interest rates on company loans rates depend on several factors such as the amount that is borrowed, what company assets the money will be used for as well as the field the company is in, how long the business has been operating and what percentage of the company has enough cash flow to cover the loan, and general well-being or financial standing of the company.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll know precisely what it is that you be required to pay, and when, from the very first day. There’s no compounding interest, and there are no additional charges (as as you make your payments on time).
We don’t charge an Application Fee. You are able to request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan in advance?
You can choose to repay all of your advance loan at any time.
If you are deciding to pursue this option, please call our helpful company credit experts. We will offer you with the details of your repayment and an early payment figure. The figure will be calculated as the total of the remaining principal amount and accrued interest to the time of early payout, plus 1.5% of the principal balance as well as any outstanding fees.
What are the repayment methods?
To make sure you do not miss payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. These are automatically withdrawn from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and being transparent about how we collect, use, exchange and protect your information, is of paramount importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We utilise a sophisticated banking verification system to instantly verify the bank account details online so we can offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses an asset that they own to get a loan. The asset can be an individual property, such as the family home or an business asset such as a truck or other piece of machinery.
The vast majority of lending institutions, even the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan then the asset might be sold by the lender. In essence, it is an opportunity to secure new financing making use of the value of what you already have.
Are I need security to get a company loan?
For loans that exceed $150,000, it is not necessary to secure assets upfront to access the money however, we do need the personal guarantee. As long as you follow the loan terms (as specified in the loan contract) Asset security will never be needed. For loans over $150,000 generally, you can get an individual guarantee and security that is in the form an asset charge.