FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Takanini Small Business Loans
Let me know more about Takanini Small Business Loans
Takanini unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from a traditional company loan?
It is possible to apply for your Small Business Loan in under 10 minutes online or over the phone, receive an instant response and have the funds on your account within 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. Our business loan is a cash-based loan so you will be aware of the total amount payable including the interest, fees and charges. Then, it is broken down into a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business purpose including the management of cash flow, company remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal use.
About Larger Takanini Business Loans
What is the Larger Takanini Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been operating for at least three years, and have an annual income of $700K. The applicant must also be 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 of proving at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used to fund almost all company purpose including business renovations, purchase of equipment or inventory or as 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 necessary for accessing funds over $150,000. This can be done in the form of a charge against assets and can include registering this through the PPSR or filing a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally based rather than defining the security for a particular asset. The person who is signing the ensure is personally accountable if the company borrower is unable to repay 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 granted to individuals who own personal property (including items or assets). The PPSR allows preference over private property assigned in accordance with the date on which a security interest was registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans that exceeds $250K, we may offer an initial pre-approval that will help ease the process. It is possible to do this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial health checks. It is not an offer of credit or guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer that you receive could be based on different terms.
Application process
Do I have the right to receive funds?
You may be eligible 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 a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in few minutes and a dedicated business lending specialist will be in touch to guide you.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour if you apply at quality company times and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statements , we are able to provide an answer in as little as 1 company day.
For the Larger Business Loan ($100K and up) we may be able to provide the conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain agreements have been approved in 24 hours.
The most efficient method for you to apply is make sure you apply during normal business hours. Also, permit us to use the advanced bank verification system to verify your bank information online. If you upload copies of your bank statements it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour, provided you submit your request in standard business times and allow us to use the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statements, we are able to provide a decision in as little as 1 business day.
For Larger Business Loans ($100K to $500K) we may be in a position to provide you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this can be faster depending on the circumstances of each application. Certain offers have been approved within just 24 hours.
The quickest method would be to ensure you apply during standard business hours. You can also let us use the advanced bank verification system link to instantly verify your bank account information online. If you send us the copies of bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a certain amount we take into consideration a range of elements to determine your well-being that is your business and the extent of repayments your business is able to afford. The total amount of the loan will be determined by the particular circumstances of your business.
When you apply for a particular amount, we look at a range of elements to determine your well-being for your business and the amount of the repayments your company is able to afford. The total amount of the loan will be determined by the particular circumstances the company.
Fees & repayments
How do you charge for an business loan?
If you decide to apply for one of our business loans, we will assess the risk profile of your business and offer you with a customised offer, including the loan amount, the terms and interest rates. A business loan is an upfront priced loan therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates depend on several factors including the amount borrowed, what company assets the money will be used for as well as the field the business is in, how long the business is in operation as well as how long the company has sufficient cash flow to fund the loan, and overall well-being as well as creditworthiness business.
What are the cost?
There are no hidden fees with our business loans. You’ll know precisely how much you’ll be required to pay, and at what time, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You can get a cash loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You can decide to repay the entire amount of your advance loan at any time.
If you do decide to pursue this option, please call our helpful business lending professionals. They will offer you with details on repayment along with an early payout estimate. This is calculated as the total of the principal balance and any accrued interest at the time of the early payout plus 1.5% of the principal balance as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payment dates and to align with your cash flow general, we offer repayments either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being upfront about how we collect information, use it, and exchange it, as well as ensure the security of 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 make use of industry-standard encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated banking verification system to immediately verify the bank account details online to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the company owner utilises an asset that they own to make the funds for a loan. The asset may be an asset belonging to the personal, like the family home, or it could be a company property like a truck or piece or equipment.
The majority of lenders, not just the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, your asset may be taken over by the lender. In essence it is the process of securing new funding using the worth of the asset you already have.
Do I require security to get an business loan?
For loans that exceed $150,000, it is not necessary to secure assets in advance to gain access to the funds However, we do require an individual guarantee. If you adhere to the loan terms (as stipulated in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150K generally, there is a personal ensure and security in the form of the charge of assets.