FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Freemans Bay Small Business Loans
Let me know more about Freemans Bay Small Business Loans
Freemans Bay unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from an traditional company loan?
The application to this Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and funds may be in your account in 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. We offer a company loan is a pre-paid loan and you’ll know ahead of time the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business use, including managing cash flows, business improvements, advertising, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
About Larger Freemans Bay Business Loans
What is the Larger Freemans Bay Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to be trading for at least 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funds be used for?
A Business Loan of a larger size can be used to fund almost any company need, including business improvements, purchasing equipment or inventory or as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This is by taking a charge against assets, and could include registration on the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is generally based rather than specifying the security of a specific asset. The person signing the guarantee is personally accountable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR permits priority over personal property to be granted depending on the date that a security interest has been registered.
The caveat can be described as a formal document lodged to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger business loans of more than $250,000 it’s possible to offer an initial pre-approval in order to simplify the process. We might be able to apply for this without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being questions. It’s not an offer of credit or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer you are offered could be on different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Just complete the online application in just a few minutes, and an experienced company lending specialist will contact you to guide you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Information on the application including credit consent, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, plus interim financial statements for the current year, Aged Payables and Aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we usually provide an answer within an hour – as long as you apply within quality business timings and let us utilise the bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements , we’ll be able to offer an answer in just 1 business day.
If you are applying for a Larger Business Loan ($100K and up) we might be able to offer you with a conditional pre-approval in around 6 hours. Once 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 particular circumstances of each application. Some offers have been approved in less than 24 hours.
The most effective method can be ensure you apply during normal business hours. You can also allow us to use the modern bank verification to verify your bank account information online. If you send us the copies of bank statement, it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer in just one hour – provided you submit your request in standard business times and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statement, we’ll provide a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some transactions have received approval within 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours and allow us to use the modern bank verification to confirm your bank details online. If you choose to send us copies of your bank statement, it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a specific amount we consider a variety of variables to determine what is the well-being of the company and the extent of payments your company will be able to support. The total amount of the loan will be determined by the particular circumstances the company.
When you make an application for a specific amount we will consider a number of variables to assess your health for your business as well as the amount of the repayments your business can afford. The total amount of your loan will be contingent on the specifics the company.
Fees & repayments
How much do you charge for a company loan?
If you decide to request business loans with us business credit, we will assess the risk assessment for your business and offer you with a tailored offer that includes the loan amount, the terms and interest rates. A company loan is a loan that is priced upfront and you’ll know the exact amount due, which includes any charges or interest.
What is the factor that determines the price I will be charged?
Interest rates for company loans rates depend on several variables like the amount to be borrowed, what business assets the money will be used for, the industry the business operates in, how long the business has been running and in the event that the company has sufficient cash flow to support the loan, and the overall well-being as well as creditworthiness business.
What are the costs?
There aren’t any hidden charges for our company loans. You’ll know exactly how much it is that you need to pay and at what time, from the very first day. There’s not any compounding interest and there are no additional charges (as as you make your payments in time).
We don’t charge an application fee. You are able to get a cash loan with with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay off the loan early?
You may choose to pay back the entire amount of your advance loan at any time.
If you choose to pursue this option, please contact our helpful company lending professionals. We will provide you with details on repayment along with an early payout estimate. It will be calculated using the total of the principal amount remaining and any accrued interest at the time of early payout plus 1.5% of the principal remaining as well as any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payments and to work with your cash flow cycle we offer repayments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about the ways we gather data, process, exchange and secure your information, is of paramount importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We use an advanced bank verification system that allows you to immediately verify the bank account details online, allowing us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from the assets they have to make the loan. The asset may be an asset belonging to the personal, like the family home, or an company asset such as a vehicle or other piece of machinery.
The vast majority of lenders, including the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan, then the asset might be sold by the lender. In essence it’s means of securing new funding using the value of what you already own.
Are I require security to get an business loan?
Up to $150K in loans the requirement for asset security is not required upfront to access the money However, we require a personal guarantee. require the personal guarantee. As long as you follow the terms of your loan (as stated in the loan contract), asset security will never be required. For loans over $150K generally, there is a personal guarantee and security that is in the form charges on assets.