FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Fitzroy Small Business Loans
Let me know about the Fitzroy Small Business Loans
Fitzroy unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
The application for this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and the money could be in your account within 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. We offer a business loan is a loan that is priced upfront which means you be aware in advance of the total amount due, which includes the interest, fees and charges. Then, it is broken down into either a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company need, such as managing cash flows, business remodels and marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal reasons.
About larger Fitzroy Business Loans
What is the Larger Fitzroy Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
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 turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funding be used for?
A large company loan is a great option for almost all company use, including company remodeling, buying new equipment or inventory for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. It’s as a result of an charge on assets, and may include registration on the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally in nature rather than stating security over a particular asset. The person who is signing the ensure 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 run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned in accordance with the date on which a security interest that is registered.
A caveat is a legal document that is filed to provide notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting larger business loans of more than $250,000 we may be able to provide an initial pre-approval that will help smooth out the process. We could be able to do this without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health questions. This is neither an offer nor a guarantee of funds. Unconditional approval is subject to an extensive credit evaluation and any offer you might receive could be subject to different conditions.
The application process
Do I have the right to receive funds?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and a dedicated business lending specialist will call you to assist you.
To apply for up to $100,000 you’ll require ID details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent and 12 months of bank statements, IRD statements, last 2 years finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we can often provide a response in one hour if you make your application within standard company time and you allow us to utilise the bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can provide the decision within just an company day.
If you are applying for a Larger Business Loan ($100K and up) we may be in a position to provide you with a conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Certain offers have been approved within 24 hours.
The fastest way would be to ensure you apply during standard company hours, and allow us to use the advanced bank verification system to instantly confirm your bank details online. If you choose to upload documents from your account statements , it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within an hour – as long as you apply within standard business timings and let us make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we will be able to offer the decision within an business day.
For Larger Business Loans ($100K to $500K) we may be in a position to provide you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved in just 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. You can also let us use the modern bank verification to check your bank’s information online. If you choose to upload duplicates of your banking statements it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we look at a variety of aspects for determining how much we can lend you health of your business as well as the amount of the repayments your business can afford. The total amount of your loan will depend on the specifics for your company.
If you apply for a set amount, we consider a variety of aspects to assess your health that is your business and the extent of payments your business can support. The total amount of your loan will be determined by the specific circumstances of your business.
Fees & repayments
What is the cost for a business loan?
If you decide to make an application for our company credit, we’ll assess the risk assessment of your company and offer you with a customised offer including loan amount, term and the interest rates. The business loan is a loan that is priced upfront so you will be aware of the total amount due, which includes any interest rates, fees or charges.
What determines the rate that I’m charged?
Business loan interest rates depend on a variety of factors like the amount of money that is borrowed, what company assets the funds are used to purchase, the industry the company operates in, the long the company has been in operation as well as how long the company has enough cash flow to support the loan, as well as the overall health or creditworthiness of the company.
What are the costs?
There are no hidden costs with our company loans. You’ll know precisely how much you’ll need to pay, and when, from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments on time).
We do not charge an application fee. You are able to make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved in establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay the entire amount of your advance loan at any time.
If you decide to take this route, please speak to our friendly company loan professionals. They will offer you with repayment details as well as an early payout amount. The figure will be calculated as the sum of the principal amount remaining and accrued interest to the date of early payout in addition to 1.5% of the principal amount remaining and any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about how we collect, use, exchange and safeguard your data, is of huge importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We utilise a sophisticated bank verification system that allows you to immediately verify the bank account details online. This allows us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an company owner makes use of an asset they own to secure the funding. The asset could be a personal asset like the family home or it could be a company property like a truck or other piece of machinery.
The vast majority of lenders, including the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan then your assets could be offered for sale by the lender. In essence it’s a way of securing additional financing taking advantage of the value of what you already have.
Are I require security to secure an business loan?
For loans of up to $150,000, the requirement for asset security is not required upfront to access the money but we require a personal guarantee. require the personal guarantee. So long as you comply with the terms of your loan (as detailed in the loan contract) Asset security is not needed. For loans that exceed $150,000, typically, you will need personal ensure and security in the form an asset charge.