FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Fitzgibbon Small Business Loans
Tell me what you think of the Fitzgibbon Small Business Loans
Fitzgibbon unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from a traditional business loan?
The application to get this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get a same day response and funds may be in your account within 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. Our company loan is a loan that is priced upfront therefore you’ll be aware of the total amount payable including any fees, charges or charges. This is then broken down into either 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 use, including the management of cash flow, company renovations, marketing to purchase inventory, new equipment, or 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 business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be operating for a minimum of 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funding for?
A Business Loan of a larger size can be used for almost any company need, including business renovations, to purchase inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This can be done in the form of a charge over assets, and could be registered with the PPSR or registering as a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is general in nature rather than defining security over a particular asset. The person who signs the guarantee is personally responsible if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR allows the priority of personal property granted according to the date a security interest was registered.
Caveats are legal form of document to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger company loans of $250,000 or more we may be able to provide an initial pre-approval to ease the process. We may be able to make this decision without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial health questions. This is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could be on different terms.
Application process
Can I be eligible for funding?
You can apply for a company 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)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and an experienced company credit specialist will call you to help you.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s License), an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent twelve month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we typically offer an answer within an hour – as long as you make your application at quality business times and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements we can offer a decision in as little as the span of one business day.
For Larger Business Loans ($100K up to $500,000) we may be in a position to offer the conditional pre-approval in about six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain offers have been approved in less than 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours, and allow us to use our advanced bank verification system to instantly check your bank’s information online. If you opt to send us the copies of bank statements it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) We can usually provide a response in one hour – as long as you make your application at normal business time and permit us to utilise the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements, we are able to provide a decision in just the span of one business day.
For the Larger Business Loans ($100K to $500K) we may be capable of provide the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some transactions have received approval within less than 24 hours.
The fastest way can be make sure you apply during standard business hours and allow us to use the modern bank verification to instantly verify your bank information online. If you upload the copies of bank statements it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a certain amount, we will consider a number of elements in order to assess your health of your business as well as the amount of payments your business is able to afford. The total amount of your loan will be contingent on the particular circumstances of your business.
When you submit an application for a specific amount we take into consideration a variety of variables to determine the health for your business as well as the amount of the repayments your company will be able to support. The amount you receive from the loan will be determined by the specific circumstances the business.
Fees & repayments
What is the cost for a company loan?
When you request business loans with us business loan, we will assess the risk assessment that you have for your business and provide you with a customised offer including loan amount, term and the interest rates. It is a business loan is an upfront priced 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 will be charged?
Interest rates for business loans rates depend on a variety of factors such as the amount that is that is borrowed, what business assets the money are used to purchase in addition to the industry that the company operates in, the long the business is in operation for, in the event that the company has enough cash flow to fund the loan, as well as the general well-being as well as creditworthiness company.
What are the charges?
There are no hidden costs for our company loans. You’ll know precisely how much it is that you be required to pay and when, starting from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You are able to make an application for loans with without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can choose to repay the entire amount of the loan early at any time.
If you decide to do this please talk to one of our helpful business loans specialists. The professionals will offer you with repayment details as well as an early payout amount. It will be calculated using the total of the principal amount remaining and any accrued interest at the time of early payout and 1.5 percent of the remaining principal plus any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align with your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about the ways we gather the information we collect, use, share and secure your information, is of paramount importance and a vital part of our relationship with 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 and other data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We utilise a sophisticated bank verification system to instantly verify the bank account details online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner makes use of an asset that they own to get a loan. The asset may be an asset belonging to the personal, like the family home or a business asset such as a vehicle or other piece of machinery.
The vast majority of banks, including the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan then your assets could be sold by the lender. In essence it is a way of securing new financing using the value of what you already have.
Do I require security for a business loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. In the event that you fulfill the terms of your loan (as stated in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans over $150,000 generally there is personal guarantee and security in the form of charges on assets.