FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Flemington Small Business Loans
Let me know how you can avail the Flemington Small Business Loans
Flemington unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an traditional company loan?
The application to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and funds may be in your account in 24 hours. Traditional company loans are based on an annual rate of interest together with additional fees and charges. The business loan is a pre-paid loan therefore you’ll be aware of the total amount payable including any fees, charges or charges. This is then broken down into weekly or daily repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company use, including the management of cash flow, business remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
About larger Flemington Business Loans
What is the Larger Flemington Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been in operation for at least 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can the funds be used for?
A Larger Business Loan can be used for nearly all company purpose including business improvements, purchasing inventory or new equipment or as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. It is usually by taking a charge against assets, and may include registration on the PPSR or filing as a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally in nature rather than stipulating the security for a particular asset. The person signing the guarantee is personally responsible if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR gives priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document that is filed to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger company loans of more than $250,000, we may offer an initial pre-approval that will help simplify the process. It is possible to apply for this 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 a few financial health questions. This is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer you are offered could be based on different terms.
Application process
Do I have the right to receive funds?
You may apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in few minutes and a dedicated business credit specialist will be in touch to guide you.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s License), a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, 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, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we can often provide an answer within an hour if you make your application during quality business time and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements , we will be able to provide a decision within one company day.
For Larger Business Loans ($100K up to $500,000) we might be able to offer you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved in less than 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours, and let us use the advance bank verification to instantly confirm your bank details online. If you opt to upload copies of your bank statement, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we can often offer an answer within one hour – as long as you apply within normal business time and allow us to use the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statement, we’ll provide the decision in just one business day.
If you are applying for Larger Business Loans ($100K or more) we might be likely to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Certain transactions have received approval in less than 24 hours.
The most effective method can be ensure you apply during normal business hours. Also, allow us to use the sophisticated bank verification link to instantly verify your bank account information online. If you choose to upload duplicates of your banking statements, it takes a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of aspects for determining what is the well-being of the business and the amount of payments your business is able to afford. The total amount of your loan will be contingent on the particular circumstances for your business.
When you apply for a certain amount, we will consider a number of variables to assess your health that is your company as well as the amount of the repayments your business can afford. The total amount of your loan will be determined by the particulars of your company.
Fees & repayments
How much should you charge for the cost of a business loan?
When you make an application for the company loan, we’ll assess the risk profile that you have for your company and provide you with a tailored offer that includes the amount of loan, the term and the interest rates. This company loan is a loan that is priced upfront therefore you will know in advance the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Interest rates for company loans rates vary due to variables like the amount to be that is borrowed, what business assets the funds are used to purchase, the industry the business is in, how long the company has been running and what percentage of the business has enough cash flow to cover the loan, and the overall health as well as creditworthiness business.
What are the costs?
There are no hidden costs with our company loans. You’ll be aware of the amount you be required to pay, and when, from the day you sign up. There’s no compounding and there are no additional charges (as long as you are able to make your payments in time).
We do not charge an application fee. You are able to get a cash loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can decide to repay the total amount of your loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful company loan professionals. They will offer you with the details of your repayment as well as an early payout amount. This will be calculated as the sum of the principal balance and any accrued interest at the time of early payment plus 1.5% of the principal balance and any outstanding fees.
What is the process for repayments?
To make sure you do not miss payments and to work with your cash flow routine, we provide payments that are either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being upfront about the ways we gather data, process, exchange and ensure the security of your information is of huge importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to security for our clients and privacy. We employ an exceptionally sophisticated bank verification system link to instantly confirm your bank account information online. This allows us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an company owner makes use of assets they own to make a loan. The asset may be a personal asset like the family home or an business asset such as a vehicle or piece or equipment.
The vast majority of lenders, not just the major banks, prefer to secure loans against an asset. If you have trouble paying back the loan then your assets could be offered for sale by the lender. In essence, it’s means of securing new financing making use of the value of what you already own.
Should I need security for a company loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money but we require a personal guarantee. require a personal guarantee. As long as you follow the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not required. If you take out loans in excess of $150K generally, you can get the option of a personal guarantee and security that is in the form charges on assets.