FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Takanini Small Business Loans
Tell me how you can avail the Takanini Small Business Loans
Takanini unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an traditional company loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and have the funds in your account within 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. The company loan is a cash-based loan so you will know ahead of time the total amount due, which includes any interest, fees or charges. This is then broken down into weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company reason, such as the management of cash flow, business renovations, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal use.
About the Larger Takanini Business Loans
What is the Larger Takanini Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been operating for at least three years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Larger Business Loan can be used to fund almost every company need, including business renovations, to purchase equipment or inventory, as 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 by way of charge against assets, which could also be registered on the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature rather than specifying security over an asset. The person who signs the guarantee is personally liable if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR gives preference over private property granted according to the date a security interest that is registered.
An affidavit is an official 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 seeking the Larger Business Loan of $250K or more it’s possible to offer a preliminary pre-approval to help make the process. We may be able to get this done without credit checks and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial well-being checks. It is neither an offer nor a guarantee of credit. A conditional approval is subject a full credit assessment and any offer you might receive could be on different terms.
Do I qualify for funds?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and an experienced company lending specialist will contact you to assist you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent, 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we can often provide an answer in just one hour, provided you make your application within quality business times and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statements , we are able to offer a decision within the span of one business day.
For Larger Business Loans ($100K to $500K) we could be able to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some deals have been approved within 24 hours.
The most efficient method is to make sure you apply during normal company hours. You can also allow us to use our advanced bank verification system link to verify your bank information online. If you choose to send us the copies of bank statements , it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we usually offer an answer within an hour – as long as you apply within normal business hours and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements, we’ll be able to offer an answer within one business day.
For the Larger Business Loans ($100K or more) We may be capable of provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this can be faster depending upon the circumstances for each application. Some offers have been approved within 24 hours.
The most efficient method can be ensure you apply during normal business hours. You can also allow us to use the advance bank verification to verify your bank information online. If you decide to upload duplicates of your banking statement, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a specific amount we take into consideration a range of factors for determining how much we can lend you well-being of the company as well as the amount of the repayments your company can afford. The total amount of your loan will depend on the specific circumstances that are unique to your company.
When you submit an application for a set amount, we look at a range of elements to determine your well-being of your business and the extent of the repayments your business is able to afford. The total amount of your loan will be contingent on the specifics the business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you make an application for the company financing, we’ll assess the risk assessment that you have for your business and provide you with a tailored offer including the amount of the loan, the duration and interest rates. The company loan is a loan that is priced upfront so you will know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I am charged?
Business loan interest rates depend on a variety of factors like the amount of money of money borrowed, the company assets the money are used to purchase in addition to the industry that the business operates in, the long the business has been running for, what percentage of the company has sufficient cash flow to pay for the loan, as well as the general health or financial standing of the company.
What are the cost?
There are no hidden fees for our company loans. You’ll know precisely how much it is that you be required to pay, and when, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments punctually).
We do not charge an Application Fee. You are able to request a credit loan no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of the loan at any point in time.
If you do decide to take this route, please speak to our friendly company credit experts. We will offer you with details for repayment along with an early payout estimate. This will be calculated as the sum of the principal amount remaining and any accrued interest at the time of the early payout, plus 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and secure your information, is crucial 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 standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We use an advanced bank verification system that allows you to immediately verify the bank account details online, allowing us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term “asset-based” refers to borrowing where a company owner makes use of an asset they own to make the funding. The asset can be an asset belonging to the personal, like the family home, or a company property like a truck as well as a piece of machine.
The vast majority of lenders, not just the banks with the biggest size, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, your assets could be transferred to the lender. In essence, it is an opportunity to secure new financing by using the value of what you already have.
Are I need security to secure a company loan?
For loans that exceed $150,000, it is not necessary to secure assets before you are able to access the money however, we do require an individual guarantee. If you adhere to your loan obligations (as stated in the loan contract) the security of assets will never be needed. For loans of over $150K generally, there is personal guarantee and security in the form the charge of assets.