FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Forrest Hill Small Business Loans
Tell me more about Forrest Hill Small Business Loans
Forrest Hill unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from a traditional business loan?
Apply for the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the funds could be on your account within 24 hours. Traditional business loans reference an interest rate per annum along with other charges and fees. This business loan is a loan that is priced upfront so you will know in advance the total amount to be paid, including the interest, fees and charges. This is then broken down into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company reason, such as cash flow management, company remodels and marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About the Larger Forrest Hill Business Loans
What is the Larger Forrest Hill Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
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 in operation for at least 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly all business need, including business improvements, purchasing inventory or new equipment for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This can be done by way of charge against assets, and could be registered through the PPSR or making as a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature, rather than stipulating the security of a specific asset. The person who signs the ensure is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR permits priority over personal property to be assigned depending on the date that a security interest has been registered.
Caveats are legal document lodged to offer notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger business loans that exceeds $250K it is possible to offer an initial pre-approval to smooth out the process. We might be able to do this without a credit check and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial well-being checks. This is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you are offered could be based on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in few minutes and an experienced business expert in lending will contact you to guide you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we typically provide an answer in just one hour if you apply at standard business hours and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statements we can offer a decision in as little as the span of one company day.
For Larger Business Loans ($100K up to $500,000) we may be capable of offer you with conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval within less than 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal business hours. Also, allow us to use our advanced bank verification system link to instantly verify your bank information online. If you opt to send us the copies of bank accounts, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we typically offer 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 decide to upload copies of your banking statements we can offer the decision in just an business day.
If you are applying for Larger Business Loans ($100K and up) we might be capable of provide you with a conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Some offers have been approved within the space of 24 hours.
The fastest method can be ensure you apply during standard business hours, and allow us to use our advanced bank verification system link to confirm your bank details online. If you upload documents from your account statements it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we will consider a number of factors that determine what is the well-being of the business and the level of the repayments your company will be able to support. The total amount of your loan will depend on the specific circumstances of your business.
When you make an application for a certain amount, we look at a range of aspects to determine your health for your business and the extent of payments your company can afford. The amount you receive from your loan will be contingent on the particulars for your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you request the business credit, we will assess the risk assessment for your company and provide you with a customised offer that includes loan amount, term and interest rates. A company loan is an upfront priced loan and you’ll be aware of the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I pay?
Interest rates for business loans rates differ based on various factors such as the amount that is of money borrowed, the business assets the money are used to purchase and the sector the company operates in, how long the business has been in operation as well as whether the business has enough cash flow to fund the loan, and also the general health as well as creditworthiness business.
What are the costs?
There are no hidden costs for our company loans, and you’ll know precisely how much you’ll need to pay, and when, starting from the first day. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments punctually).
We do not charge an application fee. You can request a credit loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of your advance loan at any time.
If you choose to take this route, please call our helpful business credit experts. We will provide you with the details of your repayment and an early payment figure. This is calculated as the total of the remaining principal amount plus any accrued interest as of the time of early payout, plus 1.5% of the principal balance as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align with your cash flow standard, we provide payments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about the ways we gather the information we collect, use, share and ensure the security of your information is crucial and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We utilise a sophisticated bank verification system link to instantly verify the bank account details online, allowing us to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner utilises assets they own to get the funding. The asset can be an individual asset, such as the family home or an company asset such as a vehicle or other piece of machinery.
The vast majority of lenders, including the big banks, tend to guarantee loans against assets. If you’re struggling to pay back the loan then the asset could be transferred to the lender. In essence, it’s means of securing new financing making use of the value of what you already have.
Do I require security for an business loan?
For loans of up to $150K, no asset security is required in advance to gain access to the funds but we do need a personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract), asset security is not needed. If you take out loans in excess of $150K generally, there is personal ensure and security is provided in the form of a charge over assets.