FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Ferntree Gully Small Business Loans
Let me know what you think of the Ferntree Gully Small Business Loans
Ferntree Gully unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from a traditional business loan?
The application to get this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional company loans refer to an interest rate per annum along with other charges and fees. This business loan is an upfront priced loan so you will know in advance the total amount payable including the interest, fees and charges. This is then divided into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business purpose including the management of cash flow, company renovations, marketing, to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Ferntree Gully Business Loans
What is the Larger Ferntree Gully Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to have been operating for a minimum of 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funds be used for?
A large company loan can be used to fund almost every business use, including business improvements, purchasing equipment or inventory or as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. This is by way of charge over assets, which could also include the registration of this with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally in nature rather than stating the security of a specific asset. The person signing the ensure is personally liable if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including objects or assets). The PPSR gives preference over private property assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal document filed to provide the legal claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking larger company loans that exceeds $250K, we may offer an initial pre-approval to ease the process. We may be able to get this done without a credit verification and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial well-being checks. This is not an offer of credit or guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could have different terms.
Application process
Do I qualify for funds?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a couple minutes, and an experienced business credit specialist will be in touch to guide you through the process.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we can often provide an answer within an hour – as long as you make your application at standard company time 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 bank statement, we’ll offer an answer in just the span of one company day.
For the Larger Business Loan ($100K and up) we may be in a position to provide you with conditional pre-approval within 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The fastest way can be make sure you apply during normal business hours. Also, allow us to use our advanced bank verification system to verify your bank account information online. If you opt to send us the copies of bank accounts, it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour – provided you submit your request within standard business timings and permit us to use the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statement, we’ll offer an answer within an business day.
For the Larger Business Loans ($100K or more) We may be likely to offer you with conditional pre-approval within 6 hours. Once you’ve signed your 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 deals have been approved within the space of 24 hours.
The fastest way can be make sure you apply during standard business hours and let us use the modern bank verification to check your bank’s information online. If you send us the copies of bank statements, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a particular amount, we consider a variety of aspects in order to assess what is the health of your business and the amount of the repayments your business can support. The total amount of your loan will depend on the specific circumstances for your company.
When you make an application for a particular amount, we consider a variety of elements to determine your health of your business as well as the amount of payments your business can support. The total amount of your loan will depend on the specific circumstances the business.
Fees & repayments
How much should you charge for a company loan?
When you make an application for the company loan, we’ll assess the risk assessment for your company and provide an individualised offer that includes the loan amount, the terms and interest rates. This company loan is an upfront priced loan which means you know in advance the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I will be charged?
Business loan interest rates depend on a variety of variables like the amount to be that is borrowed, what business assets the money are used to purchase and the sector the business is in, how long the business has been in operation and what percentage of the company has sufficient cash flow to cover the loan, and the general health or financial standing of the company.
What are the cost?
There are no hidden fees with our company loans, and you’ll know precisely what you’ll need to pay, and when, right from the day you sign up. 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 can get a cash loan without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You can choose to repay the entire amount of your loan early at any time.
If you choose to do this please call our helpful business lending specialists. The professionals will provide you with details on repayment and an early payment figure. This is calculated as the total of the principal remaining and the accrued interest up to the date of early payout in addition to 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
To make sure that you don’t miss repayments and to fit in your cash flow cycle we offer repayments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as making it clear how we collect, use, exchange and secure your information, is of huge importance and is a crucial aspect of our relationship with 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 financial and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We utilise a sophisticated bank verification system link to instantly verify your bank account details online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner uses the assets they have to make the loan. The asset may be an asset belonging to the personal, like the family home, or an business asset such as a vehicle or other piece of machinery.
The vast majority of the lenders not just the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, your asset may be transferred to the lender. In essence, it is the process of securing additional financing taking advantage of the value of what you already own.
Are I need security to secure an business loan?
For loans of up to $150K, the requirement for asset security is not required prior to the loan’s access however, we do need the personal guarantee. So long as you comply with the loan terms (as stated in your loan contract) Asset security is not needed. For loans over $150K generally there is the option of a personal ensure and security in the form of a charge over assets.