FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Telopea Small Business Loans
Tell me what you think of the Telopea Small Business Loans
Telopea unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from an traditional company loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and funds may be in your account in 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. We offer a business loan is a cash-based loan which means you be aware in advance of the total amount payable including the interest, fees and charges. This is then broken down into either a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost any business reason, such as managing cash flows, business renovations, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan is not available for personal reasons.
About larger Telopea Business Loans
What is the Larger Telopea 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 term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to be operating for a minimum of 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be used for?
A larger company loan can be used for nearly any business reason, such as company remodeling, buying inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. It is usually as a result of an charge on assets, and may include the registration of this in the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature rather than stipulating security over an asset. The person who is signing the guarantee is personally responsible if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including goods or assets). The PPSR allows the priority of personal property granted according to the date the registration of a security interest.
An affidavit is an official document that is filed to provide the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan of more than $250,000 we may be able to provide an initial pre-approval that will help smooth out the process. We may be able to get this done without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering some financial well-being questions. It is neither an offer nor a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you are offered could be subject to different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for a business 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)
- you must prove at least 6 months of trading (for 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 application process is simple and simple. Just fill out the online application within a few minutes and a dedicated business lending specialist will call you to guide you through the process.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence), a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) We can usually provide an answer within one hour, provided you apply in standard business hours and allow us to utilise the bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements we can provide a decision in just the span of one company day.
For Larger Business Loans ($100K and up) we could be in a position to provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain transactions have received approval within 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal business hours. You can also allow us to use our modern bank verification link to instantly confirm your bank details online. If you send us documents from your account statements it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we usually provide a response in one hour, provided you apply during standard business timings and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements, we are able to provide the decision within an business day.
For the Larger Business Loans ($100K and up) we may be likely to offer you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within 24 hours.
The quickest method would be to make sure 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 upload documents from your account accounts, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a certain amount we will consider a number of variables in order to assess what is the health that is your company and the level of repayments your company is able to afford. The total amount of the loan will be determined by the specific circumstances for your business.
If you apply for a certain amount, we will consider a number of elements to determine the health that is your company and the extent of the repayments your business will be able to support. The total amount of your loan will depend on the particulars of your business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to make an application for the company loans, we will assess the risk assessment of your business and provide you with a customised offer, including the amount of loan, the term and interest rates. It is a company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the factor that determines the price I will be charged?
Interest rates for company loans rates vary due to factors including the amount borrowed, what business assets the funds are used to purchase, the industry the company is operating in, how long the business is in operation as well as in the event that the business has sufficient cash flow to fund the loan, and general well-being or financial standing of the company.
What are the cost?
There aren’t any hidden charges for our company loans, and you’ll know precisely how much it is that you be required to pay and at what time, from the day you sign up. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments on time).
We don’t charge an Application Fee. You are able to request a credit loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can choose to repay the entire amount of the loan in full at any time.
If you are deciding to do this please speak to our friendly company credit experts. The specialists will offer you with details for repayment as well as an early payout amount. This will be calculated as the total of the principal balance and any accrued interest at the date of early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We make use of an advanced bank verification system to immediately confirm your bank account information online. This allows us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner utilises assets they own to secure a loan. The asset could be a personal asset like the family home or it could be a company property like a truck or piece or equipment.
The majority of lending institutions, not just the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan then your assets could be transferred to the lender. In essence, it’s means of securing new funding making use of the value of what you already own.
Do I need security for an business loan?
Up to $150K in loans there is no requirement for asset security before you can access the money however, we require a personal guarantee. need an individual guarantee. So long as you comply with the loan terms (as stipulated in the loan contract), asset security is not required. If you take out loans in excess of $150K typically, you will need an individual guarantee and security is provided in the form of charges on assets.