FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Ferny Hills Small Business Loans
Let me know how you are able to avail the Ferny Hills Small Business Loans
Ferny Hills unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from a traditional business loan?
Apply for your Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional company loans are based on an annual interest rate plus other fees and charges. This company loan is a pre-paid loan and you’ll know ahead of time the total amount payable including the interest, fees and charges. This is then broken down into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company need, such as cash flow management, business remodeling, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal use.
About the Larger Ferny Hills Business Loans
What is the Larger Ferny Hills Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to be operating for at least three years with an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be used for?
A larger company loan is a great option for almost any business reason, such as business renovations, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This is by way of charge on assets, which could also include registration on the PPSR or making a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is generally in nature rather than stipulating the security of a specific asset. The person signing the guarantee is personally liable in the event that the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR grants priority over personal property to be assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal document filed to offer the legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan of $250,000 or more we may be able to provide a preliminary pre-approval to help smooth out the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves you answering a few financial health checks. It’s not an offer of credit or guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer that you receive could be subject to different terms.
Application process
Can I be eligible for funding?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in few minutes and an experienced company lending specialist will call you to guide you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent, 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often offer an answer in just one hour if you submit your request in standard company hours and permit us to utilise the bank verification system link to instantly verify your bank information online. If you opt to send us copies of your bank statements we can provide a decision in as little as 1 company day.
For the Larger Business Loan ($100K up to $500,000) we could be likely to offer the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Some transactions have received approval in less than 24 hours.
The quickest method would be to make sure you apply during standard company hours. You can also allow us to use our advance bank verification link to instantly verify your bank information online. If you decide to upload the copies of bank statements it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we usually provide an answer within one hour if you submit your request at normal business hours and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements, we will be able to provide an answer within 1 business day.
For the Larger Business Loans ($100K up to $500,000) we may be likely to provide you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain deals have been approved within the space of 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours. Also, let us use the advanced bank verification system to instantly confirm your bank details online. If you decide to upload documents from your account statements it will take a little longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a certain amount we consider a variety of factors that determine how much we can lend you health that is your company and the amount of payments your company can support. The total amount of the loan will be determined by the particular circumstances the company.
When you make an application for a specific amount we consider a variety of aspects to assess the well-being that is your business and the amount of repayments that your company will be able to support. The total amount of your loan will depend on the specific circumstances that are unique to your business.
Fees & repayments
How much do you charge for a business loan?
When you request our company loan, we will assess the risk assessment of your business and provide you with a customised offer that includes the amount of the loan, the duration and interest rates. This business loan is an upfront cost loan which means you know in advance the total amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I pay?
Business loan interest rates depend on a variety of variables like the amount to be of money borrowed, the business assets the money will be used for and the sector the company is in, how long the company has been in operation as well as in the event that the company has sufficient cash flow to fund the loan, and the overall health or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges for our company loans, and you’ll know precisely how much it is that you be required to pay, and when, from the day you sign up. There’s not any compounding interest and no additional fees (as long as you make your payments punctually).
We don’t charge an application fee. You can make an application for loans with without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay the entire amount of the advance loan at any time.
If you do decide to do this please call our helpful business loans experts. They’ll offer you with repayment details and an early payment figure. This will be calculated as the sum of the principal remaining and accrued interest to the time of early payout, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To make sure that you don’t miss payments and to work with your cash flow cycle we offer repayments either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing the ways we gather information, use it, and exchange it, as well as ensure the security of your information is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to security for our clients and privacy. We make use of an advanced bank verification system to immediately confirm your bank account information online, allowing us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of the assets they have to obtain the funding. The asset can be an individual property, such as the family home or a business asset such as a truck or other piece of machinery.
The vast majority of banks, even the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then your assets could be transferred to the lender. In essence, it is the process of securing additional financing using the value of what you already have.
Should I require security for an business loan?
For loans of up to $150,000, there is no requirement for asset security before you can access the money however, we require a personal guarantee. require a personal guarantee. As long as you follow your loan obligations (as stated in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans of over $150,000 generally, there is personal ensure and security in the form the charge of assets.