FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Flemington Small Business Loans
Let me know how you are able to avail the Flemington Small Business Loans
Flemington unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from an ordinary company loan?
Apply to this Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and have the funds in your account within 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. We offer a company loan is an upfront priced loan so you will know in advance the total amount to be paid, including any fees, interest or charges. This is then broken down into either a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company purpose including the management of cash flow, business improvements, advertising, to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
Concerning Larger Flemington Business Loans
What is the Larger Flemington Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to have been operating for at least three years with an annual turnover of $700,000. Your business must belong to 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 to demonstrate at least 12 months of trading.
How can the funds be used for?
A large company loan can be used for nearly every company purpose including business renovations, to purchase equipment or inventory or as general working capital, and much more. The loan cannot be used for personal purposes.
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, which could also be registered on the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature, rather than stating security over an asset. The person signing the ensure is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR gives priority over personal property to be assigned according to the date the security interest that is registered.
A caveat is a legal document lodged to provide the legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking larger company loans that is greater than $250,000 we may be able to provide an initial pre-approval that will help simplify the process. It is possible to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial well-being checks. This is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be subject to different conditions.
Application process
Can I be eligible for funding?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application in few minutes and a dedicated business credit specialist will be in touch to guide you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, plus interim financial statements for the current year, Aged Payables and Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we usually provide an answer in just one hour, provided you submit your request within standard business hours and let us utilise the bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we will be able to provide an answer within just the span of one company day.
For the Larger Business Loan ($100K and up) we might be capable of provide you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some transactions have received approval within 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal business hours, and allow us to use our advance bank verification to verify your bank account information online. If you choose to send us the copies of bank accounts, it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we usually offer an answer in just one hour, provided you apply at normal business times and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statements we can offer an answer in as little as the span of one business day.
For Larger Business Loans ($100K to $500K) we could be likely to offer you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Some agreements have been approved in the space of 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours and permit us to use the advance bank verification link to verify your bank information online. If you choose to send us duplicates of your banking statements it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of elements to determine your well-being of the company and the amount of repayments that your company can afford. The amount you receive from your loan will depend on the specifics the business.
When you submit an application for a set amount, we look at a range of variables to determine the health of the business and the extent of payments your business can support. The amount you receive from your loan will be determined by the particular circumstances the company.
Fees & repayments
How do you charge for a business loan?
If you decide to request our business credit, we’ll assess the risk profile that you have for your business and provide you with a customised proposal that includes the amount of the loan, the duration and interest rates. The business loan is an upfront priced loan and you’ll know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on a variety of factors like the amount of money that is borrowed, what company assets the money are used to purchase as well as the field the business operates in, the long the company has been running for, whether the business has enough cash flow to pay for the loan, and also the general health as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll know precisely how much you’ll need to pay, and when, right from the very first day. There’s not any compounding interest and no extra fees (as as you make your payments on time).
We don’t charge an application fee. You can request a credit loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can repay the total amount of your advance loan at any time.
If you do decide to take this route, please contact our helpful business loans specialists. We will provide you with repayment details and an early payment figure. This is calculated as the sum of the principal amount remaining and any accrued interest at the date of early payout in addition to 1.5% of the principal amount remaining and any outstanding fees.
What are the repayment methods?
To make sure you do not miss due dates and also to be in line with your cash flow standard, we provide payments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my information 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 safeguard your data, is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We use an advanced banking verification system to immediately verify the bank account details online. This allows us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner utilises an asset that they own to secure the funds for a loan. The asset can be either a personal asset like the family home or a company property like a truck or piece of equipment.
The vast majority of the lenders even the major banks, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, the asset could be taken over by the lender. In essence, it’s an opportunity to secure new financing by taking advantage of the value of what you already own.
Should I require security for a company loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money, however we do require an individual guarantee. As long as you follow the terms of your loan (as specified in the loan contract) the security of assets will never be needed. For loans over $150K generally there is an individual guarantee and security in the form an asset charge.