FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Fullarton Small Business Loans
Let me know how you can avail the Fullarton Small Business Loans
Fullarton unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from a traditional business loan?
You can apply to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and the money could be in your account in 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. The company loan is a loan that is priced upfront so you will be aware of the amount you will have to pay, including the interest, fees and charges. This is then broken down into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business reason, such as the management of cash flow, company improvements, advertising for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available to fund personal expenses.
About the Larger Fullarton Business Loans
What is the Larger Fullarton Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been operating for at least three years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funding for?
A large business loan can be used for nearly all company use, including business renovations, to purchase equipment or inventory for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. This can be done as a result of an charge over assets, which could also include registration through 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 security over an asset. The person who is signing the ensure is personally liable in the event that the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR permits the priority of personal property assigned depending on the date that a security interest was registered.
An affidavit is an official document that is filed to offer notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans that is greater than $250K, we may offer an initial pre-approval that will help simplify the process. We may be able to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering a few financial well-being questions. It’s not an offer or guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could be subject to different conditions.
The application process
Do I have the right to receive funds?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a few minutes and a dedicated company loan specialist will be in touch to help you.
To be eligible for up to $100,000 you’ll need the right identification documents (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Information on the application including credit consent, 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer within an hour – as long as you apply during standard company hours and allow us to utilise the bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statement, we’ll offer an answer in as little as the span of one business day.
For the Larger Business Loan ($100K to $500K) we may be capable of provide you with conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved in less than 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, let us use the advanced bank verification system link to verify your bank information online. If you choose to send us documents from your account statement, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) we typically provide a response in one hour – as long as you apply in standard business time and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statement, we’ll provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be likely to offer you with pre-approval conditional to your application in about 6 hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, allow us to use our advanced bank verification system to instantly verify your bank account information online. If you upload copies of your bank statements it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount we will consider a number of variables for determining how much we can lend you well-being of your company and the level of repayments that your company can afford. The amount you receive from the loan will be determined by the particular circumstances that are unique to your business.
When you make an application for a particular amount, we consider a variety of factors to assess how much we can lend you such as well-being that is your company and the level of repayments that your business is able to afford. The total amount of your loan will be contingent on the specific circumstances of your business.
Fees & repayments
How much do you charge for an company loan?
If you decide to make an application for business loans with us business loan, we’ll assess the risk assessment that you have for your company and provide an individualised offer that includes the loan amount, the terms and the interest rates. A company loan is an upfront priced loan so you will be aware of the total amount to be paid, including any interest rates, fees or charges.
What determines the rate that I am charged?
Interest rates for company loans rates depend on a variety of variables like the amount to be that is borrowed, what company assets the funds will be used for and the sector the business is in, how long the business has been operating, whether the company has sufficient cash flow to cover the loan, and also the overall well-being or financial standing of the company.
What are the charges?
There aren’t any hidden costs with our company loans. You’ll know exactly how much you’ll need to pay, and at what time, from the first day. There’s not any compounding interest and no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to apply for a loan without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan in advance?
You can decide to repay all of your loan in full at any time.
If you decide to do this please contact our helpful business lending specialists. We will provide you with the details of your repayment and an early payout figure. The figure will be calculated as the total of the principal balance and accrued interest to the date of early payout, plus 1.5 percent of the principal balance plus any outstanding fees.
How do you make repayments work?
To make sure you do not miss payments and to work your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing how we collect, use, exchange and protect your information, is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We employ an exceptionally sophisticated bank verification system link to instantly verify your bank account information online, allowing us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a business owner uses an asset they own to make a loan. The asset can be an asset belonging to the personal, like the family home or it could be a business property like a truck as well as a piece of machine.
The vast majority of lenders, even the major banks, prefer to secure loans against assets. If you’re struggling to pay back the loan then the asset might be transferred to the lender. In essence it’s an opportunity to secure additional financing using the worth of the asset you already own.
Should I need security to get a company loan?
For loans of up to $150K, there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. need the personal guarantee. As long as you follow your loan obligations (as specified in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans of over $150,000 typically, you will need an individual ensure and security in the form of charges on assets.