FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Fulham Gardens Small Business Loans
Tell me more about Fulham Gardens Small Business Loans
Fulham Gardens unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
It is possible to apply to this Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and funds may be on your account within 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. We offer a company loan is a cash-based loan and you’ll know in advance the total amount due, which includes the interest, fees and charges. This is then divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business purpose including the management of cash flow, company improvements, advertising to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Fulham Gardens Business Loans
What is the Larger Fulham Gardens Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to be operating for at least three years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A larger business loan is a great option for almost any company purpose including business renovations, to purchase new 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 to obtain funding above $150,000. This is as a result of an charge on assets, and could include registering this with the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally in nature rather than specifying security over a particular asset. The person who signs the ensure is personally responsible if the company borrower 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 reflects security interests which are registered with respect to personal property (including items or assets). The PPSR allows preference over private property granted depending on the date that a registration of a security interest.
The caveat can be described as a formal document lodged to offer the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger company loans that exceeds $250,000 we may be able to provide an initial pre-approval to ease the process. We might be able to make this decision without a credit check, and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves the answer to a series of financial health checks. This is not an offer or guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you receive could be subject to different conditions.
The application process
Do I have the right to receive funds?
You may apply for an business 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)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a few minutes and an experienced company credit specialist will contact you to help you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statement, last 2 years finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we usually provide a response in one hour if you apply during standard business time and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements , we’ll be able to offer a decision in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we may be in a position to offer the conditional pre-approval within 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some agreements have been approved within 24 hours.
The most efficient method is to make sure you apply during normal company hours and permit us to use the advance bank verification to verify your bank information online. If you choose to upload copies of your bank statements , it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we typically offer a response in one hour if you submit your request in standard business times and you allow us to use the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements we can provide a decision in as little as 1 business day.
For the Larger Business Loans ($100K and up) we might be in a position to provide you with a conditional pre-approval in about 6 hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain transactions have received approval within just 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours. You can also let us use the sophisticated bank verification to verify your bank information online. If you upload documents from your account statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount we take into consideration a range of aspects that determine what is the well-being for your company and the level of the repayments your company can support. The amount you receive from your loan will be contingent on the specific circumstances for your business.
When you submit an application for a particular amount, we consider a variety of factors to assess your well-being that is your company and the amount of the repayments your company will be able to support. The total amount of the loan will be determined by the particulars the company.
Fees & repayments
How do you charge for an business loan?
If you decide to request business loans with us company credit, we’ll assess the risk assessment that you have for your company and provide an individualised proposal that includes the amount of the loan, the duration and interest rates. A company loan is an upfront cost loan therefore you will be aware in advance of the total amount payable including any interest rates, fees or charges.
What determines the amount I pay?
Interest rates for business loans rates depend on a variety of factors including the amount that is borrowed, what business assets the funds will be used for as well as the field the company is in, how long the company has been operating as well as what percentage of the company has sufficient cash flow to support the loan, and also the overall well-being and creditworthiness of the business.
What are the fees?
There are no hidden costs with our company loans. You’ll know precisely how much you need to pay, and when, from day one. There’s no compounding interest, and no extra fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to apply for a loan no cost upfront or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You can choose to repay the entire amount of the loan early at any time.
If you do decide to take this route, please speak to our friendly company loans professionals. They’ll offer you with the details of your repayment as well as an early payout amount. This is calculated as the sum of the principal balance and any accrued interest at the date of early payout, plus 1.5 percent of the remaining principal plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and an integral 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 secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We utilise a sophisticated bank verification system link to immediately verify the bank account details online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an business owner makes use of assets they own to obtain the funds for a loan. The asset may be an individual asset, such as the family home, or an company asset such as a truck or piece of equipment.
The majority of banks, including the big banks, tend to guarantee loans against an asset. If you are having difficulty paying back the loan, your assets could be offered for sale by the lender. In essence it’s an opportunity to secure new financing using the value of what you already own.
Do I need security to secure a company loan?
Up to $150K in loans there is no requirement for asset security before you are able to access the money but we require a personal guarantee. require the personal guarantee. If you adhere to the loan terms (as detailed in the loan contract) Asset security will never be needed. For loans that exceed $150,000, generally, you are able to get a personal ensure and security in the form of charges on assets.