FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Flat Bush Small Business Loans
Let me know about the Flat Bush Small Business Loans
Flat Bush unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from a traditional company loan?
Apply for the Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and have the funds in your account in 24 hours. Traditional company loans reference an interest rate per annum as well as other fees and charges. The company loan is a loan that is priced upfront and you’ll be aware of the amount you will have to pay, including any fees, interest or charges. This is then divided into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any business need, such as the management of cash flow, company improvements, advertising, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
About the Larger Flat Bush Business Loans
What is the Larger Flat Bush Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to have been in operation for at least 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be used for?
A large business loan is a great option for almost all company reason, such as company remodeling, buying 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 requires security?
Asset security is needed for accessing funds over $150,000. It’s in the form of a charge over assets, and may include the registration of this on the PPSR or filing as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is general in nature rather than defining security over a particular asset. The person who is signing the guarantee is personally liable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including goods or assets). The PPSR allows preference over private property assigned depending on the date that a security interest was registered.
A caveat is a legal form of document to offer an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250,000 it’s possible to offer an initial pre-approval to ease the process. It is possible 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 assessment that includes answering a couple of financial health questions. It is not an offer or guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you may receive may be on different terms.
Do I qualify for funds?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a couple minutes, and a dedicated business credit specialist will contact you to help you.
To be eligible for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) and a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually provide a response in one hour, provided you apply during standard company timings and allow us to use the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements , we are able to offer the decision in just 1 company day.
For Larger Business Loans ($100K up to $500,000) we could be likely to provide the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain deals have been approved in just 24 hours.
The fastest way can be make sure you apply during normal company hours. Also, let us use the advanced bank verification system to instantly confirm your bank details online. If you send us documents from your account statement, it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we typically offer a response in one hour – provided you make your application during normal business time and allow us to use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements we can offer an answer within the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we could be in a position to offer you with conditional pre-approval in around six hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Some agreements have been approved within less than 24 hours.
The fastest method can be ensure you apply during standard business hours and let us use the sophisticated bank verification link to confirm your bank details online. If you choose to send us duplicates of your banking statements, it will take a little longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a certain amount we look at a variety of elements in order to assess your well-being of your company as well as the amount of repayments your company is able to afford. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
When you apply for a particular amount, we will consider a number of aspects to assess your health for your business and the level of payments your company can support. The total amount of your loan will depend on the particulars for your business.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to request one of our business credit, we’ll assess the risk assessment for your business and provide you with a customised offer, including the amount of the loan, the duration and interest rates. A business loan is an upfront priced loan so you will know the exact amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I’m charged?
Business loan interest rates depend on a variety of factors including the amount borrowed, the company assets the funds are used to purchase, the industry the company operates in, how long the company is in operation and whether the business has sufficient cash flow to pay for the loan, and the general well-being or creditworthiness of the company.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll know precisely what it is that you need to pay and when, from the day you sign up. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan early?
You can choose to repay the entire amount of the loan in full at any time.
If you do decide to pursue this option, please talk to one of our helpful company loan experts. The professionals will offer you with details on repayment and an early payment figure. This will be calculated as the sum of the remaining principal amount and the accrued interest up to the date of early payout and 1.5 percent of the principal balance and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow routine, we offer repayments that are either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about how we collect, use, exchange and secure your information, is of paramount importance and a vital part of our relationship 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 certified for our dedication to customer security and security. We use an advanced bank verification system that allows you to instantly verify the bank account details online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term “asset-based” refers to borrowing where an business owner utilises the assets they have to obtain a loan. The asset may be an asset belonging to the personal, like the family home, or a business asset like a truck or piece or equipment.
The majority of lenders, including the largest banks, are inclined to guarantee loans against assets. If you are having difficulty paying back the loan, then the asset could be sold by the lender. In essence it is a way of securing new financing by using the worth of the asset you already have.
Are I require security to secure a company loan?
For loans of up to $150K, it is not necessary to secure assets in advance to gain access to the funds, however we do need an individual guarantee. As long as you follow the terms of your loan (as detailed in your loan contract document) Asset security is not needed. For loans that exceed $150,000, typically, you will need an individual guarantee and security that is in the form an asset charge.