FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ferny Hills Small Business Loans
Tell me more about Ferny Hills Small Business Loans
Ferny Hills unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
Apply to the Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and funds may be in your account in 24 hours. Traditional company loans refer to an annual interest rate together with additional fees and charges. This business loan is an upfront priced loan therefore you’ll know ahead of time the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into either a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
About larger Ferny Hills Business Loans
What is the Larger Ferny Hills Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percentage 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 at least three years and generate an annual revenue of at least $700K. Your business must belong to 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 to demonstrate at least 12 months of trading.
What can I use the funding for?
A large company loan can be used to fund almost any business reason, such as business renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This is by way of charge against assets and can be registered on the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally based rather than defining security over an asset. The person who is signing the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be granted according to the date a security interest was registered.
An affidavit is an official form of document to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of more than $250K, we may offer an initial pre-approval to ease the process. We might be able to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health checks. It’s neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you may receive may have different conditions.
The application process
Do I have the right to receive funds?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in few minutes and an experienced company credit specialist will call you to assist you.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer in just one hour, provided you submit your request at standard company hours and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements , we’ll be able to offer a decision in just the span of one company day.
For the Larger Business Loan ($100K or more) we might be capable of provide you with conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some deals have been approved within the space of 24 hours.
The quickest method would be to ensure you apply during normal business hours. You can also let us use the modern bank verification to verify your bank account information online. If you upload duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour – provided you submit your request at normal business hours and let us use the bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements, we are able to provide the decision in just one business day.
For Larger Business Loans ($100K and up) We may be capable of offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some offers have been approved within less than 24 hours.
The fastest way would be to make sure you apply during standard business hours, and allow us to use our modern bank verification link to verify your bank account information online. If you choose to upload copies of your bank statement, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a particular amount, we look at a variety of variables for determining the health that is your company as well as the amount of the repayments your company will be able to support. The total amount of the loan will be determined by the particular circumstances the business.
When you submit an application for a certain amount, we will consider a number of elements to assess how much we can lend you such as health that is your company and the extent of repayments your business can afford. The amount you receive from your loan will be determined by the specific circumstances for your business.
Fees & repayments
How much do you charge for a company loan?
When you make an application for business loans with us business loan, we will assess the risk profile for your business and offer you with a customised offer including the loan amount, the terms and interest rates. The company loan is an upfront priced loan and you’ll know the exact amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I pay?
Business loan interest rates differ based on various factors like the amount of money of money borrowed, the business assets the funds will be used for and the sector the company is operating in, how long the business has been in operation and what percentage of the business has enough cash flow to support the loan, and overall health or creditworthiness of the business.
What are the charges?
There aren’t any hidden costs for our business loans. You’ll know exactly how much you need to pay, and when, from the day you sign up. There’s no compounding and no additional fees (as as you make your payments on time).
We do not charge an application fee. You can get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of your loan early at any time.
If you are deciding to do this please contact our helpful company loans professionals. They will provide you with repayment details as well as an early payout amount. The figure will be calculated as the total of the principal amount remaining and any accrued interest at the time of early payout plus 1.5 percent of the principal remaining plus any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about the ways we gather data, process, exchange and protect your information, is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to customer security and security. We use an advanced bank verification system to immediately verify the bank account details online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner makes use of assets they own to secure the funds for a loan. The asset can be an individual asset, such as the family home or a company asset like a truck or other piece of machinery.
The majority of the lenders including the major banks, prefer to make loans secured by an asset. If you have trouble paying back the loan, then the asset could be transferred to the lender. In essence, it is a way of securing new financing using the worth of the asset you already have.
Should I require security for an business loan?
For loans that exceed $150,000, no asset security is required prior to the loan’s access however, we require a personal guarantee. require the personal guarantee. As long as you follow the terms of your loan (as specified in your loan contract document) Asset security is not needed. If you take out loans in excess of $150,000 generally, there is an individual ensure and security in the form of a charge over assets.