Borrowing FAQs

1. Who is funding4business?

funding4business is a global open and transparent peer-to-peer Marketplace, where established businesses can source affordable business loans, crowdfunded loans or start-up funding from willing lenders and investors at mutually acceptable rates and loan terms. There are no banks or middlemen. You deal direct with the investor/lender.

funding4business specialises in business loans, crowdfunded loans and start-up business investments. We do not facilitate personal or home loans.

2. How does funding4business operate?

funding4business is a two-side open and transparent Marketplace: -

  • Investors/lenders with funds available to invest, are listed on one side.
  • Business/borrowers, Crowdfunders and Start-ups looking for funding on the other.

3. What's the differences between types of loans and or funding?

3.1. Business Loan:-

Is a loan on terms mutually acceptable to you the borrower and the investor/lender.

  • Usually for established businesses with a trading history.
  • Usually from 1 or maybe 2 lenders.
  • You decide which offers you want to explore.
  • The loan is repayable on agreed terms.
  • You may also make offers for funds from investors in the Marketplace.

3.2. CrowdFunded Business Loan:-

Is on terms acceptable to you the borrower and terms acceptable to a number of independent investors/lenders.

  • Usually for established or emerging businesses with some trading history.
  • Usually from multiple lenders on various terms for each investor/lender.
  • The investors make offers for funds at varying terms and conditions.
  • You decide which offers you want to explore.
  • The various loans are repayable on various agreed terms.
  • You may also make offers for funds from investors in the Marketplace.

3.3. Start-up or Equity Funding:-

Is risk capital provided by investors in return for equity or the prospect of equity in the new start-up enterprise.

  • Usually for IT type start-ups or emerging businesses without any trading history.
  • Usually from multiple investors on standardised terms for all investor/lenders.
  • This is not a repayable loan, it is risk capital and is repayable only if the start-up business is a success.

4. What is the best type of loan for my business?

You and or your business colleagues and/or advisors determine which funding approach and methodology is best suited to your business funding requirements.

You and your colleagues and/or business advisors determine the funding terms such as interest, repayment term, repayment frequency, etc, that you are prepared to accept.

If for example, you are an existing business and have a trading history a business loan or crowdfunded business loan may be an option.

Alternatively, if you are a start-up seeking risk capital or seed funding you may consider listing as a start-up or crowdfunder and attracting a different type of investor.

5. Does funding4business provide the business loans?

No. We do not provide business loans.

funding4business is not a finance company nor does it provide finance to prospective borrowers.
All loans are provided by willing investors in an open and competitive Marketplace.
We only facilitate Connections between lenders and borrowers.
The terms of any loan or investment are agreed directly between the parties.

6. Does funding4business manage or guarantee my loan?

No. We provide information on potential investors/lenders in the Marketplace.

You decide on the investor(s) and loan arrangements that suite your needs
The loan is between you and the investor/lender direct
funding4business do not manage or administer any business loans
funding4business do not guarantee any business loans
funding4business do not act as middlemen or loan administrators.

7. Who can borrow money through funding4business?

Loans are for established businesses or start-up businesses only.
Businesses must be based in Australia or New Zealand
Businesses must be registered and have a ABN or ACN
No personal or home loans

8. How much money can my business borrow?

The minimum loan to any business is $25,000
There is no maximum loan as this is negotiated between the parties.
The minimum and maximum investment in any start-up is negotiated between the parties

9. What is the repayment term of my loan?

Business loans may be repayable over 12, 18, 24, 30, 36, 48 or 60 months depending on the requirements of the investor/lender and what is agreed between the parties.

10. How much do I repay per month on my loan?

You decide how much money your business wants or needs to borrow and then calculate your financial repayment projections based on the selected interest rate, repayment method and loan repayment term.

However, be aware that a larger loan may be considered a higher risk and you may be required to pay a higher interest rate than for a lesser loan.

Your monthly loan repayment schedule is optionally available through our web site.

11. What types of loan repayment options are available?

funding4business supports two types of loan repayment methods: – 

11.1. Principle & Interest (P&I) loan

is an amortised loan at a fixed rate of interest. Each periodic payment consists of an interest payment on the outstanding balance and a repayment of part of the principal. Repayments are calculated such that each regular repayment will be for the same amount, although the final payment may be slightly different to account for rounding adjustments. For a given interest rate, frequency of payment and loan period, a P&I loan will pay less interest over the term of the loan than Interest-only loan, sbecause the amount outstanding on the loan reduces as each repayment is made.

11.2 Interest-Only (IO) loan

is at a fixed rate of interest, to be repaid by a certain date. Regular payments are payments of interest only; the final payment consists of a payment of interest and the repayment of the entire principal amount. For a given interest rate, frequency of payment and loan period, regular payments for an interest only loan would be less than the payments for a P&I loan, because no principal is being repaid; however, the total interest paid over the term of the loan could be more than for a P&I loan because interest is paid on the total amount borrowed for the full term of the loan.

12. What rate of interest will I pay on my business loan?

The rate of interest you pay, is in the main decided by the rates offered by Investors in the Marketplace. The interest rate you could pay is the rate at which lenders are prepared to provide you with the funding you are seeking for your business.

However, you determine the amount of loan funds, the loan term, the interest rate and repayment method that you will accept. Once you accept an Investor(s) funding offer, you will confirm the final loan terms and arrangements with the investor directly.

13. How long does it take to get my loan listed in the Marketplace?

About 5 minutes.

14. How much does it cost to list my business loan in the Marketplace?

There is no fee to list a business loan in the funding4business Marketplace.

There is an Connection fee of $85 to any investor to whom you request a Connection.

15. How much does it cost to list my Start-up?

There is no fee to list a Start-up in the funding4business Marketplace.

There is a Connection fee of $85 to any investor to whom you request a Connection.

16. How long does it take to receive offers in the Marketplace?

Once your funding requirements are listed on the Marketplace, the time it will take to attract the business funding you are seeking, depends very much on how attractive your business proposition is to investors and lenders.

It could take a few hours. However we would normally expect that you would receive offers for the funds you are seeking within days.

17. What financial and business information do I need to provide?

In order to evaluate your business loan, you will need to complete the questionnaire on registration and provide some basic financial information and details about your business.

18. Can I choose the start & completion date for my business loan?

This would be negotiated directly with your loan funds provider.

19. Can I offer a Directors or Owners guarantee for my business loan?

Yes. If you or your business is offering a Directors or Owners guarantee then select the appropriate option on registering and completing your loan profile. These details will be visible to prospective investors in your Marketplace profile.

Draft loan guarantee documents are optionally available from funding4business.

However, it is not our responsibility and we will not conduct any check on the bona fides of the loan guarantor.

20. How can I answer any questions an investor has about my business loan?

After being Connected to an investor/funds provider, any questions would be discussed directly with your funds provider(s).

21. Can I change the details of my loan after registering?

Yes. Log on to funding4business and change any business loan variables in you profile.

22. Can I cancel my business loan request?

Yes. Log on, select your loan profile, then click the “Cancel” button.

23. What happens when I accept a Connection for my business loan?

You will be required to pay a Connection fee for offers accepted.

All offers accepted will confirmed by email to you the borrower and to the investor (funds provider) with the contact and business details of both parties.

24. What interest rate will I pay if I accept an offer?

You will under normal circumstance pay the interest rate and loan terms of the offers you have accepted. This assumes that you finalise the loan terms with the investor(s) on the listed and proposed loan terms.

25. How are the repayments calculated?

Your loans are calculated and displayed in the marketplace.

funding4business can provide an optional loan repayment and amortisation schedule.

26. When will my loan repayments begin?

This would be discussed and negotiated directly with your business loan provider.

27. Can I choose the date(s) when repayments are made?

This would be discussed and negotiated directly with your business loan provider.

28. How can I contact my lender(s) after a loan offer has been accepted?

All contact details of loan provider(s) are confirmed by email after you have accepted an offer from an investor/lender. You may contact the investor direct with any questions.

29. What happens if I miss a repayment?

This would be discussed and negotiated directly with your business loan funds provider.

30. Can I make one-off payment or pay out the loan?

This would be discussed and negotiated directly with your business loan provider.

GET STARTED TODAY

Get a business loan

  • Loans from $25K to $1.5 million
  • Terms between 12 to 60 months
  • Principal & interest or Interest only
  • Listing is free

List your investment

  • Funding from $25K to $1.5 million
  • You choose your equity offering
  • You choose your investors
  • Listing is free

Join our Investors Panel

  • Secure business investments
  • Crowdfunded property investments
  • Businesses for sale
  • Listing is free