FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Farm Cove Small Business Loans
Let me know how you are able to avail the Farm Cove Small Business Loans
Farm Cove unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
Apply to get this Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and funds may be available in just 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. The business loan is an upfront priced loan and you’ll be aware of the total amount to be paid, including the interest, fees and charges. Then, it is broken down into either weekly or daily payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company need, such as control of cash flow company renovations, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Farm Cove Business Loans
What is the Larger Farm Cove Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been trading for at least 3 years and have an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can the funding be used for?
A Larger Business Loan can be used to fund almost every company need, including business renovations, purchase of equipment or inventory, as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This can be done in the form of a charge on assets and can include registering this in the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is generally in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable in the event that the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR allows the priority of personal property granted according to the date the security interest was registered.
An affidavit is an official document filed to provide an official notice of a claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan of more than $250K we can offer an initial pre-approval that will help make the process. It is possible to do this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial well-being questions. This is neither an offer nor a guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you might receive could be on different terms.
The application process
Are I eligible for funding?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form within a few minutes and a dedicated business loan specialist will call you to help you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent and 12 months of bank records, IRD statements and the last two years’ finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour if you make your application during quality company time and let us utilise the bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statements , we’ll be able to provide an answer within just an company day.
For Larger Business Loans ($100K or more) we could be in a position to offer you with conditional pre-approval within six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Certain agreements have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours, and permit us to use the advanced bank verification system to instantly check your bank’s 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 money?
For the Small Business Loan ($5K and up) we can often provide an answer in just one hour, provided you apply within normal business times and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statement, we’ll offer an answer within an business day.
For Larger Business Loans ($100K and up) we could be able to provide the conditional pre-approval within about 6 hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this could be shorter based on the specifics of each application. Some deals have been approved within less than 24 hours.
The fastest way would be to ensure you apply during standard business hours. You can also allow us to use the advanced bank verification system to instantly verify your bank information online. If you send us the copies of bank accounts, it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a certain amount we will consider a number of aspects to determine your well-being for your company and the extent of repayments that your business will be able to support. The total amount of the loan will be determined by the specific circumstances for your company.
When you make an application for a particular amount, we consider a variety of elements to assess the health that is your company and the extent of payments your business can afford. The amount you receive from your loan will be determined by the particulars the company.
Fees & repayments
How much should you charge for an business loan?
If you decide to apply for one of our business financing, we’ll assess the risk profile of your company and provide an individualised proposal that includes loan amount, term and interest rates. The company loan is an upfront-priced loan therefore you will know in advance the total amount payable including any costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates differ based on various variables like the amount to be of money borrowed, the company assets the money are used to purchase and the sector the company is in, how long the company is in operation and in the event that the company has sufficient cash flow to fund the loan, and overall health as well as creditworthiness business.
What are the cost?
There are no hidden fees for our business loans. You’ll be aware of the amount you be required to pay, and when, right from day one. There’s no compounding interest, and no extra fees (as long as you are able to make your payments in time).
We do not charge an application fee. You can get a cash loan with with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you decide to do this please speak to our friendly business loan professionals. We will offer you with details on repayment and an early payment figure. This is calculated as the sum of the principal remaining and accrued interest to the time of early payout plus 1.5% of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about how we collect information, use it, and exchange it, as well as ensure the security of your information is vital and an integral aspect 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 security for our customers and security. We make use of an advanced banking verification system to instantly verify your bank account information online. This allows us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an company owner uses the assets they have to secure the loan. The asset could be an individual asset, such as the family home or a business asset such as a vehicle or piece of equipment.
The vast majority of banks, even the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan, your assets could be offered for sale by the lender. In essence it’s the process of securing new funding using the worth of the asset you already have.
Do I need security to get a company loan?
For loans of up to $150,000, no asset security is required prior to the loan’s access, however we require a personal guarantee. require an individual guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract) the security of assets will never be needed. For loans over $150,000 typically, you will need an individual ensure and security in the form of the charge of assets.