FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Faulconbridge Small Business Loans
Tell me how you can avail the Faulconbridge Small Business Loans
Faulconbridge 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.
How is how is the Unsecured Loan different from the traditional company loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and the money could be on your account within 24 hours. Traditional business loans reference an annual rate of interest as well as other fees and charges. The business loan is a cash-based loan and you’ll know in advance the total amount due, which includes any fees, interest or charges. This is then divided into weekly or daily repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly every business need, such as control of cash flow business remodeling, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Faulconbridge Business Loans
What is the Larger Faulconbridge Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been in operation for at least 3 years with an annual turnover of at least $700K. It is necessary to be 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 of proving at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size can be used for almost all company need, including business improvements, purchasing equipment or inventory, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It is usually as a result of an charge over assets, and may be registered with the PPSR or registering as a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature rather than specifying the security of a specific asset. The person who is signing the guarantee is personally accountable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR permits the priority of personal property assigned according to the date a registration of a security interest.
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 an enterprise loan of $250,000 or more we can offer an initial pre-approval that will help simplify the process. It is possible to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health questions. It’s neither an offer nor a guarantee of finance. A conditional approval is subject an assessment of your creditworthiness and any offer you are offered could be on different conditions.
The application process
Can I be eligible for funding?
You may be eligible for a 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)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a couple minutes, and an experienced company loan specialist will be in touch to help you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we typically provide an answer within one hour, provided you apply during quality business hours and you allow us to utilise the bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements we can offer the decision in just one business day.
For Larger Business Loans ($100K up to $500,000) we could be capable of provide you with a conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain deals have been approved in 24 hours.
The quickest method can be make sure you apply during standard business hours. Also, permit us to use the modern bank verification link to instantly verify your bank account information online. If you send us the copies of bank statements , it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within an hour, provided you make your application in standard business timings and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements, we’ll be able to provide the decision within an business day.
For Larger Business Loans ($100K to $500K) we might be in a position to provide you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Certain deals have been approved in the space of 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours. Also, permit us to use the advance bank verification to check your bank’s information online. If you send us documents from your account statement, it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a specific amount we consider a variety of elements in order to assess how much we can lend you well-being for your business and the level of repayments that your company will be able to support. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
If you apply for a particular amount, we take into consideration a variety of factors to assess the health of your business and the extent of repayments your company can afford. The total amount of the loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to request our company loans, we’ll assess the risk profile of your business and offer you with a customised proposal that includes loan amount, term and the interest rates. The business loan is an upfront priced loan therefore you will be aware of the total amount payable including any interest rates, fees or charges.
What is the basis for the rate I pay?
Business loan interest rates differ based on various factors such as the amount that is of money borrowed, the business assets the money are used to purchase as well as the field the company operates in, the long the company has been running, what percentage of the business has enough cash flow to cover the loan, and overall well-being and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs with our company loans. You’ll know precisely what it is that you be required to pay, and when, right from the day you sign up. There’s no compounding and there are no additional charges (as long as you are able to make your payments on time).
We do not 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 costs associated with establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You may choose to pay back all of your loan in full at any time.
If you choose to do this please talk to one of our helpful company loans experts. They will provide you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal balance and any accrued interest at the date of early payout and 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about how we collect information, use it, and exchange it, as well as secure your information, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We utilise a sophisticated bank verification system to instantly verify your bank account information online so we can offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the company owner utilises assets they own to get the loan. The asset could be an individual asset, such as the family home or an company asset such as a vehicle or piece or equipment.
The vast majority of the lenders even the big banks, tend to secure loans against assets. If you’re having trouble paying back the loan, the asset could be transferred to the lender. In essence, it’s a way of securing new financing using the worth of the asset you already have.
Are I need security to secure a company loan?
For loans of up to $150K, there is no requirement for asset security before you are able to access the money but we require a personal guarantee. need an individual guarantee. If you adhere to your loan commitments (as stated in your loan contract) the security of assets will never be required. For loans of over $150,000 typically, you will need the option of a personal ensure and security in the form the charge of assets.