FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Findon Small Business Loans
Tell me more about Findon Small Business Loans
Findon unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from an ordinary company loan?
Apply to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and funds may be available in just 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. The business loan is an upfront priced loan and you’ll be aware in advance of the amount you will have to pay, including any fees, interest or charges. This is then broken down into either a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company reason, such as the management of cash flow, business renovations, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Findon Business Loans
What is the Larger Findon Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be utilised?
A large company loan can be used to fund almost all company use, including company renovations, to purchase new equipment or inventory, as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This is by taking a charge against assets, and could include registering this in the PPSR or filing as a caveat.
A director’s or personal ensure is a guarantee to repay credit that is general in nature rather than stating security over a particular asset. The person who signs the guarantee is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR permits the priority of personal property assigned in accordance with the date on which a security interest was registered.
An affidavit is an official document filed to provide notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan of $250K or more we may be able to provide an initial pre-approval that will help smooth out the process. It is possible to make this decision without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial well-being questions. It’s not an offer or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be based on different conditions.
Application process
Are I eligible for funding?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application in just a few minutes, and an experienced company lending specialist will call you to assist you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s License), an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details for application including credit consent twelve month bank accounts, the IRD statements and the last two years’ finalised financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K and up) We can usually offer a response in one hour, provided you apply at standard business times and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements , we will be able to offer a decision within an company day.
For the Larger Business Loan ($100K up to $500,000) we may be likely to provide the conditional pre-approval in around six hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain offers have been approved in 24 hours.
The fastest way can be ensure you apply during standard business hours. You can also permit us to use the modern bank verification link to check your bank’s information online. If you opt to send us copies of your bank statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we typically provide an answer within one hour if you apply in normal business time and allow us to use the bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements, we are able to provide the decision in just an business day.
For Larger Business Loans ($100K to $500K) we may be likely to offer you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be faster depending on the circumstances of each application. Certain deals have been approved in the space of 24 hours.
The fastest method is to ensure you apply during normal business hours, and let us use the sophisticated bank verification link to confirm your bank details online. If you choose to upload duplicates of your banking statements, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a certain amount we consider a variety of variables for determining what is the health of the business as well as the amount of repayments your company can afford. The total amount of your loan will depend on the specific circumstances that are unique to your business.
When you submit an application for a set amount, we will consider a number of aspects to determine your well-being of the business and the level of payments your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your business.
Fees & repayments
How much should you charge for the cost of a business loan?
When you apply for one of our company financing, we will assess the risk assessment that you have for your company and provide you with a customised offer that includes the amount of loan, the term and interest rates. This business loan is an upfront cost loan so you will be aware of the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I pay?
Business loan interest rates depend on several factors like the amount of money borrowed, the business assets the funds are used to purchase as well as the field the business operates in, how long the business has been operating, whether the company has enough cash flow to pay for the loan, and the general health or creditworthiness of the company.
What are the costs?
There are no hidden costs with our business loans, and you’ll be aware of the amount you need to pay, and at what time, from day one. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You can apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan in advance?
You may choose to pay back the entire amount of the loan early at any time.
If you decide to do this please contact our helpful company loans professionals. We will offer you with details for repayment and an early payout figure. This will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payout plus 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payment dates and to align with your cash flow standard, we offer repayments either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being clear about how we collect data, process, exchange and secure your information, is crucial and a vital aspect of our relationship with 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 and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We use an advanced bank verification system that allows you to immediately confirm your bank account information online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the business owner borrows from an asset that they own to make the loan. The asset can be either an individual asset, such as the family home or an company asset such as a truck as well as a piece of machine.
The vast majority of the lenders including the big banks, tend to make loans secured by an asset. If you are having difficulty paying back the loan, your asset may be transferred to the lender. In essence, it’s a way of securing additional financing using the worth of the asset you already have.
What do I require security to get an business loan?
Up to $150K in loans the requirement for asset security is not required before you are able to access the money, however we require a personal guarantee. need the personal guarantee. So long as you comply with your loan commitments (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans over $150,000 generally, there is the option of a personal guarantee and security in the form the charge of assets.