FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Fairfield Heights Small Business Loans
Tell me what you think of the Fairfield Heights Small Business Loans
Fairfield Heights unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from the traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and the funds could be in your account within 24 hours. Traditional company loans reference an annual rate of interest along with other charges and fees. Our company loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount payable including any fees, charges or charges. Then, it is broken down into either weekly or daily payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business reason, such as control of cash flow company improvements, advertising, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
About the Larger Fairfield Heights Business Loans
What is the Larger Fairfield Heights Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been in operation for at least 3 years and have an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be used for?
A Business Loan of a larger size is a great option for almost any business need, including company improvements, purchasing inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. It’s in the form of a charge over assets, and could include registration in the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature, rather than stipulating the security for a particular asset. The person signing the ensure is personally liable in the event that the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
The caveat can be described as a formal form of document to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that exceeds $250,000 we can offer an initial pre-approval to ease the process. It is possible to get this done without a credit check and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being questions. It’s not an offer of credit or guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer that you receive could be based on different terms.
The application process
Do I qualify for funds?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (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. Complete the online form in few minutes and a dedicated company credit specialist will call you to assist you.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within an hour, provided you apply during standard company hours and allow us to utilise the bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statements , we are able to offer the decision in just 1 business day.
If you are applying for a Larger Business Loan ($100K or more) we might be likely to offer you with pre-approval conditional to your application in about six hours. After you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be quicker based upon the circumstances for each application. Certain agreements have been approved in 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard business hours. You can also allow us to use the modern bank verification link to verify your bank account information online. If you choose to send us the copies of bank statement, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) We can usually offer a response in one hour if you make your application within normal business hours and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statement, we’ll offer the decision in just 1 business day.
For the Larger Business Loans ($100K to $500K) We may be able to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Some offers have been approved in less than 24 hours.
The most effective method is to ensure you apply during normal business hours. You can also allow us to use the modern bank verification link to instantly confirm your bank details online. If you decide to upload copies of your bank statement, it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of variables to determine what is the well-being that is your company and the extent of the repayments your business can support. The total amount of your loan will depend on the specific circumstances the business.
When you apply for a certain amount, we will consider a number of elements to assess the well-being of your business as well as the amount of repayments that your company can support. The amount you receive from your loan will be contingent on the particulars of your company.
Fees & repayments
How much do you charge for an company loan?
If you decide to request one of our business loans, we will assess the risk assessment the business and offer an individualised offer, including loan amount, term and the interest rates. A business loan is an upfront cost loan which means you be aware of the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I will be charged?
Business loan interest rates depend on a variety of factors such as the amount that is that is borrowed, what company assets the money are used to purchase and the sector the business is operating in, how long the business has been operating, in the event that the company has enough cash flow to cover the loan, and the overall health and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our company loans, and you’ll know precisely what you’ll be required to pay, and at what time, from the very first day. There’s no compounding and no extra fees (as as long as you pay your payments on time).
We don’t charge an application fee. You can make an application for loans with without any upfront costs or obligation to proceed.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I repay the loan in advance?
You can repay the entire amount of the loan at any point in time.
If you choose to take this route, please talk to one of our helpful business lending professionals. The specialists will provide you with repayment details and an early payout figure. This will be calculated as the sum of the principal balance plus any accrued interest as of the time of the early payout and 1.5 percent of the principal balance as well as any outstanding fees.
How do you make repayments work?
To make sure you do not miss payments and to work with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing how we collect the information we collect, use, share and secure your information, is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system to immediately verify the bank account details online, allowing us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner uses the assets they have to secure the loan. The asset can be either a personal asset like the family home, or it could be a company asset such as a truck or other piece of machinery.
The vast majority of banks, not just the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan, then your assets could be sold by the lender. In essence, it is a way of securing additional financing making use of the value of what you already own.
Do I require security for a business loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money, however we do need an individual guarantee. If you adhere to the loan terms (as specified in your loan contract document), asset security is not required. If you take out loans in excess of $150K generally, you can get a personal guarantee and security in the form a charge over assets.