FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Tivoli Small Business Loans
Tell me about the Tivoli Small Business Loans
Tivoli unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an ordinary business loan?
It is possible to apply to the Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the money could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum along with other charges and fees. We offer a business loan is a loan that is priced upfront and you’ll know ahead of time the total amount payable including any interest, fees or charges. Then, it is broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business need, such as managing cash flows, business remodels and marketing to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal purposes.
About Larger Tivoli Business Loans
What is the Larger Tivoli Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years, 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 utilised?
A larger company loan is a great option for almost every company reason, such as business improvements, purchasing new equipment or inventory for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It’s in the form of a charge over assets, and could include registration in the PPSR or filing as a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally based rather than specifying the security of a specific asset. The person signing the ensure is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a registration of a security interest.
The caveat can be described as a formal document that is filed to provide an official notice of a claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250,000, we may offer an initial pre-approval to smooth out the process. We might 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 an initial assessment, which involves you answering a few financial health questions. This is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you are offered could be subject to different conditions.
Application process
Are I eligible for funding?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, 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 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a couple minutes, and a dedicated business loan specialist will call you to guide you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Information on the application including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised 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 up to $100,000) we usually offer an answer within one hour, provided you apply at quality company hours and permit us to utilise the bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements , we’ll be able to offer an answer within 1 business day.
For the Larger Business Loan ($100K and up) we may be likely to provide you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some offers have been approved in 24 hours.
The quickest way to apply can be ensure you apply during standard business hours and allow us to use our advance bank verification to confirm your bank details online. If you send us the copies of bank statement, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we typically offer an answer in just one hour – provided you submit your request at standard business hours and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statements, we will be able to offer an answer within 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be able to provide you with conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be faster depending on the particular circumstances of each application. Some transactions have received approval in the space of 24 hours.
The quickest method can be make sure you apply during standard business hours, and allow us to use the modern bank verification link to verify your bank information online. If you choose to upload the copies of bank accounts, it may take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a particular amount, we consider a variety of variables for determining what is the health of the company and the extent of payments your business is able to afford. The total amount of your loan will depend on the specifics that are unique to your business.
When you apply for a certain amount, we will consider a number of variables to determine the health for your company and the extent of repayments that your business can afford. The amount you receive from your loan will be contingent on the particulars the business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to make an application for business loans with us business loans, we will assess the risk profile for your company and offer you with a customised offer, including the loan amount, the terms and the interest rates. This company loan is a loan that is priced upfront which means you know in advance the total amount payable including any charges or interest.
What determines the amount I pay?
The interest rates on business loans rates depend on several factors including the amount that is borrowed, what company assets the money will be used for and the sector the company is in, how long the business has been operating for, what percentage of the business has enough cash flow to fund the loan, as well as the general well-being or creditworthiness of the business.
What are the charges?
There aren’t any hidden costs for our company loans. You’ll be aware of the amount you need to pay, and at what time, from the day you sign up. There’s no compounding interest, and there are no additional charges (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 no cost upfront or commitment to apply.
The Origination Fee covers the costs associated in establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay out the loan in advance?
You can repay all of your loan at any point in time.
If you choose to do this please talk to one of our helpful company credit experts. They will provide you with repayment details and an early payment figure. This is calculated as the total of the principal amount remaining and any accrued interest at the time of the early payout in addition to 1.5% of the principal remaining and any fees that remain unpaid.
How do repayments work?
To help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about the ways we gather data, process, exchange and safeguard your data, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We make use of an advanced bank verification system that allows you to instantly verify your bank account details online, allowing us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner utilises an asset that they own to make the loan. The asset may be an asset belonging to the personal, like the family home, or a company property like a truck or piece of equipment.
The vast majority of lenders, even the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, your assets could be transferred to the lender. In essence it’s the process of securing new funding making use of the value of what you already own.
What do I require security to get an company loan?
For loans up to $150,000 the requirement for asset security is not required upfront to access the money, however we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as detailed in the loan contract), asset security will never be required. If you take out loans in excess of $150,000 generally there is the option of a personal ensure and security that is in the form the charge of assets.