FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Ferndale Small Business Loans
Tell me about the Ferndale Small Business Loans
Ferndale unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from an ordinary company loan?
You can apply for the Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and have the funds in your account within 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. This company loan is an upfront priced loan and you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. Then, it is divided into weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company need, such as managing cash flows, company remodels and marketing for purchasing inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
About Larger Ferndale Business Loans
What is the Larger Ferndale Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit that is this large the company needs to be trading for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A large business loan can be used for nearly every business use, including business renovations, purchase of inventory or new equipment for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This is by way of charge over assets, and may include registering this in the PPSR or registering as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally in nature rather than stating security over an asset. The person who signs the ensure is personally responsible if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR gives preference over private property granted according to the date the security interest was registered.
The caveat can be described as a formal form of document to provide an official notice of a claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan that is greater than $250,000, we may offer a preliminary pre-approval to help simplify the process. It is possible to apply for this without a credit check and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial health checks. This is not an offer or guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you might receive could be on different conditions.
The 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 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Complete the online form in just a few minutes, and an experienced company lending specialist will be in touch to help you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K – $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent as well as 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we usually offer an answer within an hour, provided you make your application in standard business hours and permit us to utilise the bank verification system link to instantly verify your bank’s information online. If you want to submit copies of your bank statements we can provide a decision in as little as one company day.
For the Larger Business Loan ($100K up to $500,000) we could be likely to provide the conditional pre-approval in around six hours. After you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based on the circumstances of each application. Some agreements have been approved in 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to verify your bank account information online. If you decide to send us the copies of bank statements it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we typically provide an answer within an hour – provided you submit your request within standard business time and let us use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements, we’ll be able to provide an answer in just one business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however this can be faster depending on the particular circumstances of each application. Some deals have been approved within 24 hours.
The fastest method is to make sure you apply during standard business hours. Also, allow us to use our advanced bank verification system link to instantly check your bank’s information online. If you opt to upload the copies of bank accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a specific amount we take into consideration a range of variables in order to assess what is the well-being of the business as well as the amount of the repayments your business can support. The amount you receive from your loan will depend on the specifics that are unique to your company.
When you submit an application for a particular amount, we look at a range of elements to determine your health of your business and the extent of repayments that your business can afford. The total amount of your loan will be determined by the particular circumstances the business.
Fees & repayments
How much do you charge for the cost of a company loan?
When you request the company loans, we will assess the risk assessment of your company and offer you with a tailored offer, including loan amount, term and interest rates. It is a company loan is an upfront priced loan and you’ll know in advance the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I am charged?
Interest rates for company loans rates depend on several factors such as the amount that is of money borrowed, the business assets the money are used to purchase in addition to the industry that the business operates in, the long the business has been running for, how long the business has sufficient cash flow to fund the loan, and the general health or creditworthiness of the company.
What are the cost?
There aren’t any hidden costs with our company loans. You’ll know precisely how much it is that you need to pay, and at what time, from the very first day. There’s no compounding interest and no extra fees (as long as you make your payments in time).
We do not charge an application fee. You can request a credit loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan earlier?
You can repay the entire amount of the advance loan at any time.
If you do decide to do this please call our helpful company credit experts. We will provide you with details on repayment and an early payment figure. This is calculated as the sum of the principal balance and the accrued interest up to the time of the early payout and 1.5% of the remaining principal plus any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align with your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about the ways we gather information, use it, and exchange it, as well as safeguard your data, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and security. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account information online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a company owner makes use of the assets they have to make the loan. The asset may be an individual property, such as the family home, or it could be a business asset such as a truck or piece of equipment.
The majority of lending institutions, including the banks with the biggest size, prefer to make loans secured by an asset. 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 new funding taking advantage of the value of what you already have.
Are I need security to secure an company loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access, however we do need the personal guarantee. In the event that you fulfill your loan obligations (as detailed in the loan contract) Asset security is not needed. For loans that exceed $150K, generally, there is personal ensure and security that is in the form a charge over assets.