Frequently Asked Questions

CONSUMERS

Q: Why should I use Terrace instead of going directly to my bank?

A: The advantage of a platform is that we have willing lenders ready to provide financing if you meet their criteria. While you bank is a great way to get financing, you will need to start the process over if they are unwilling to lend to you for your specific need.


Q: How much can I borrow?

A: The amount you can borrow depends on the use of the financing (product or service) and your credit profile. It is solely the discretion of the lender to decide how much to finance. However, you can help by selecting an accurate range for the amount of financing you are seeking on your application. Lenders on the platform go up to $15,000 at this time. 


Q: Will my credit report be subjected to multiple hits?

A: Terrace Finance Corp. only does a soft credit check and therefore we will not cause a hit to your credit report. However, each lender may pull credit and result in a hit. If you are declined by a lender and then are sent to another lender, that second company may also pull credit.

If you see this on your credit report, you can ask for adjustment with the credit bureaus if they are related to the same credit request.


Q: Can I still get financing if my credit score isn’t great?

A: We offer financing through the whole spectrum of credit scores for most products. We will route your application based on what you are requesting to finance (product or service), your credit profile and the lender’s specific criteria.


Q: Can I pay off my financing early?

A: Each lender has specific terms to their financing offer. Most offer early payoff options. We encourage you to ask this question prior to accepting any financing offer.


Q: What happens if I can’t make a payment?

A: Each lender has their own terms and conditions about payments. However, we encourage you to be proactive and honest about any delays in payments. You might be surprised at the accommodations a lender will make with you.

COMMERCIAL

Q: What kind of spending limit can we expect for our business?

A: Each type of lending is different – some are specific to assets, some are specific amounts at one time, others are open lines of credit. Help us better understand what you business needs are and we will ensure your application goes to the appropriate lender.


Q: Can I use Terrace to borrow money to cover payroll or other operating costs?

A: Yes - There are capital operating solutions on the platform

  

Q: What is Section 179 of the tax code? How does Terrace help me use it to save money?

A: Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.


GOVERNMENT

Q: Why should we use Terrace instead of going straight to a lender?

A: We have access to multiple lenders and there is no cost to you to utilize our service. Government lending is a specialty that has taken us years to develop. We hope our expertise will help source the right funding for your need.

MERCHANTS

Q: What’s the catch? Do we pay any fees?

A: No catch. Our cooperative model between applicants, merchants, lenders, manufacturers and partners places the costs to the companies that receive the benefit. 



Q: We’re a new business. Can we be part of the network?

A: Yes – as long as you’re a registered business and pass our background checks, we will consider you to join the platform.


Q: We get participation requests from financing companies all the time. Why should we choose Terrace?

A: For exactly the reason you stated – you get these requests all the time. Rather than managing them yourself, why not join a platform that will do most of the work for you? As a participant, you have a voice in the lenders and solutions that we offer.


Q: We have certain brand standards we stick to. Can we brand the platform to our company?

A: You can brand it to your company but that requires some extra work to implement and some extra maintenance to maintain. When encourage you to see our demo to see how we retain your brand throughout the process.


Q: How fast can our customers get approved so we can finalize a sale? 

A: Some lenders are instant, some other lenders require documentation and review prior to making a decision. A lot of that depends on the amount financed. 


Q: Do you have enough lenders to service our wide range of customers?

A: Great question and the answer is we don’t know – we need to build a profile of your business and then we will provide a map showing our coverage and plans to fill in any gaps that are discovered.


Q: Can the Terrace platform accommodate both our brick & mortar and ecommerce sales?

A: Yes – our solution is designed for both B&M and eCommerce sites – and companies that do both. There are slightly different implementation methods for each type of business that we would be glad to share with you during a demonstration.

LENDERS

Q: How are we charged for the acquisitions we receive?

A: There are two models – per application fees and success fees. Per application fees are tied to your specific appetite and therefore a very direct way to measure mutual success. Success fees are harder to define and require lenders to commit to operational performance metrics. We can work with you to decide the best method to meet your business needs. 


Q: How does the Terrace platform lower our operating costs?

A: There are three ways: 


1) better applications – sending you only applications that meet your appetite reduces time to review applications 


2) applicant packages – we gather the application, documents (if you require), and third-party information so that when you get an application it’s complete and ready to process

 

3) lower cost to acquire – we believe our fees are substantially lower than the cost to acquire a new customer organically (e.g. social media, direct marketing to merchants). Let us prove to you the savings.


Q: We only want to consider applicants that meet certain criteria. Can we set limits on which applications we receive?

A: Absolutely – this is the key to a cooperative platform. Each lender defines their appetite to those applications that have the best chance of approval. 


Q: What if we aren’t happy with how something works on the platform?

A: We would kindly ask for direct feedback to our merchant support team. We would open a ticket, assign resources to research and resolve the issue and hopefully make you satisfied. We pride ourselves on our honestly – even if it can’t meet your needs.