FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Fitzgibbon Small Business Loans
Let me know how you can avail the Fitzgibbon Small Business Loans
Fitzgibbon unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
It is imaginable to apply to get this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and the funds could be in your account within 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. This company loan is a pre-paid loan which means you be aware of the total amount payable including any fees, interest or charges. Then, it is divided into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business need, such as cash flow management, business renovations, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
About the Larger Fitzgibbon Business Loans
What is the Larger Fitzgibbon Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to be trading for at least 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funding for?
A Business Loan of a larger size can be used for almost any company use, including business renovations, to purchase new equipment or inventory, as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. This can be done as a result of an charge against assets, and could include registering this in the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature, rather than specifying security over an asset. The person who signs the ensure is personally responsible if the company lender is not able 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 contains security interests that are registered for personal property (including items or assets). The PPSR allows the priority of personal property assigned in accordance with the date on which a registration of a security interest.
Caveats are legal document filed to offer notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250,000 it’s possible to offer a preliminary pre-approval to help ease the process. We could be able to apply for this without a credit verification and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial well-being questions. It’s not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer you are offered could be based on different conditions.
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 over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a 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. Simply complete the online form within a couple minutes, and an experienced company loan specialist will be in touch to guide you through the process.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent, 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within an hour if you make your application in standard business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements we can offer an answer in as little as the span of one company day.
For the Larger Business Loan ($100K and up) we could be able to offer you with a conditional pre-approval in about 6 hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Some offers have been approved in the space of 24 hours.
The quickest method can be make sure you apply during standard company hours. You can also permit us to use the modern bank verification to check your bank’s information online. If you send us documents from your account statement, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) We can usually provide an answer in just one hour – provided you submit your request during normal business time and permit us to use the bank verification system link to instantly verify your bank details online. If you choose to send us copies of your bank statements, we are able to offer an answer within one business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of provide you with conditional pre-approval in about six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval in 24 hours.
The fastest way is to ensure you apply during standard business hours, and allow us to use our advanced bank verification system link to verify your bank account information online. If you decide to send us the copies of bank statements it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a particular amount, we consider a variety of elements that determine your well-being that is your business and the extent of repayments your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances for your company.
If you apply for a set amount, we consider a variety of factors to determine your well-being for your company and the extent of repayments that your business can support. The total amount of your loan will be contingent on the specifics of your company.
Fees & repayments
What is the cost for an company loan?
If you decide to request the business credit, we’ll assess the risk assessment the business and provide an individualised offer that includes loan amount, term and interest rates. It is a business loan is a loan that is priced upfront therefore you will know in advance the total amount you will have to pay, including charges or interest.
What determines the rate that I pay?
Interest rates for company loans rates depend on several variables like the amount to be borrowed, what company assets the money will be used for and the sector the business operates in, how long the company is in operation for, what percentage of the business has enough cash flow to support the loan, and overall well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden costs with our business loans, and you’ll know precisely how much you need to pay, and at what time, from the very first day. There’s no compounding interest and no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You are able to request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You can choose to repay the total amount of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful business lending professionals. They’ll provide you with the details of your repayment as well as an early payout amount. It will be calculated using the sum of the principal balance and accrued interest to the date of early payout plus 1.5 percent of the principal balance plus any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing the ways we gather data, process, exchange and protect your information, is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We utilise a sophisticated banking verification system to immediately confirm your bank account information online, allowing us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner makes use of an asset they own to make the loan. The asset may be an individual property, such as the family home, or it could be a business property like a truck as well as a piece of machine.
The vast majority of lenders, even the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan then your assets could be sold by the lender. In essence it is the process of securing additional financing using the worth of the asset you already have.
Are I need security for an business loan?
For loans up to $150K the requirement for asset security is not required before you can access the money however, we do need a personal guarantee. If you adhere to your loan commitments (as detailed in the loan contract) Asset security is not needed. If you take out loans in excess of $150,000 generally, you can get an individual ensure and security is provided in the form of a charge over assets.