Investing FAQs

Interested in investing with funding4business?

If you would like to list as an investor or lender on our marketplace, please send us an email and we will be in touch.

info@funding4business.com.au

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 business/borrower.

funding4business specialises in crowdfunded business 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 and Start-ups looking for funding on the other.

3. How does funding4business work?

  • We provide information on potential business investments.
  • You decide on the business and loan arrangements that suite your investment needs.
  • The loan is between you the funds provider and the business direct.
  • F4B do not manage or administer any business loans.
  • F4B do not guarantee any business loans.

4. What is the fee structure of funding4business?

Listing on the funding4business marketplace is free.

When you decide you want to meet a prospective business borrower, there is a Connection fee of $85.00 (incl GST).

5. Who can borrow money through funding4business?

Any business that is registered and has a ABN or ACN

6. How much money can a business borrow?

The minimum loan to any business is $25,000
The maximum loan to any business is set by our systems at $1,500,000, but is negotiable.

7. What quantum of funds can I invest through F4B?

The minimum that any investor may invest through F4B is $25,000

The maximum loan to any business from any one investor is negotiable.

8. What is the repayment term of my loan?

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

9. How much do I receive per month on my loan?

You decide how much money you want to invest in any business and on what terms and conditions you lend funds to the selected business. Then calculate your financial repayment projections based on the selected interest rate, repayment method and loan repayment term. However, be aware that a larger loans may be considered a higher risk and you may require a higher interest rate than for a lesser value loans.

Your monthly loan repayment may be calculated by using our repayment calculator.

10. What types of loan repayment options are available?

funding4business supports two types of loan repayment options: – “Principal & Interest” or “Interest-Only”.

A 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, because the amount outstanding on the loan reduces as each repayment is made.

An 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.

11. What rate of interest will I receive on my investment funds?

The rate of interest you receive, is in the main decided by the rates offered by other investors in the Investor MarketPlace. The interest rate you could receive is the rate at which businesses are prepared to borrow funds from you.

However, you determine the amount of loan funds, the loan term, the interest rate and repayment method that you will accept. Once you accept a Business(s) borrowing offer, you will confirm the final loan terms and arrangements with the business directly.

12. How long does it take to get my investment funds listed on the funding4business MarketPlace?

About two minutes.

13. How long does it take to receive offers from businesses for my loan funds on the Borrower's Marketplace?

Once your investment funds are listed on the Investors Marketplace, the time it will take to attract business loan requests, depends very much on how attractive your investment proposition is to businesses and how it compares to other lenders. However we would normally expect that you would receive offers for the loan funding within days.

Remember, you decide on the amount of loan funds you will make available, the loan term, the interest rate and the repayment method that you will accept. Once you accept a business funding offer(s), you will confirm the final terms and arrangements with the business directly.

Once you have accepted a business loan request(s) we will confirm the acceptance of the business loan funds and loan conditions by email, to both parties.

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

In order to evaluate your investment listing, you will provide brief details of the type of business that you would prefer to invest in and the terms and conditions of any loans.

15. Can I choose the completion date for my business loan?

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

16. Can I request a Directors or Owners guarantee for my business loan?

Yes. If the terms of your loan is to have a Directors or Owners guarantee then select the appropriate option on registering and completing your investment profile. These details will be visible to prospective businesses in your Investor 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.

17. How can I contact a business about my investment?

After being referred to a business by F4B, any questions would be discussed and negotiated directly with the business. Contact details are provided and confirmed by email on the acceptance of a Connection.

18. Can I change the loan amount and/or interest rate on my investment after registering?

Yes. Sign in to funding4business and change any investment variables in you profile.

19. How do I accept the funding offers I have received from business(s)?

Click on the “Accept Connection” button on a Connection email. Select the businesses and offers that meet your investment requirements by clicking the “Accept Offer” button. Remember there is a maximum of $50,000 loan limit by an investor to any one business. Select the business offers that will collectively meet your total investment needs.

20. What happens if my investment funds are not fully drawn?

You can accept offers for all or part of your investment funds. You also have the option of changing your loan terms to attract more offers.

21. Can I cancel my investment listing?

Yes. To cancel your investment profile, login to F4B, select your investment profile, then click the “Cancel” button.

22. What happens when I accept an offer for my investment funds?

You will be required to pay F4B a referral fee to the business for Connections accepted.

All Connections accepted will confirmed by email to you and the business borrower with the contact and business details of both parties.

If requested, F4B will prepared a DRAFT Loan Agreement between the parties for your review. If requested, F4B will prepare a DRAFT Directors or Owners Loan Guarantee between the parties for your review.

23. What interest rate will I receive if I accept an offer from a business borrower?

You will under normal circumstance pay the interest rate and loan terms of the Connections you have accepted.

However, once you are in contact with and in discussion with the business, the loan terms may be changed by mutual consent and agreement.

24. How are the repayments calculated?

You can calculate you repayments be using the F4B loan repayment calculator.

25. When will my loan repayments begin?

This would need to be discussed and negotiated directly with the business borrower.

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

This would need to be discussed and negotiated directly with the business borrower.

27. How can I contact the business(s) after a loan offer has been accepted?

All contact details of the business(s) are confirmed by email after you have accepted a Connection from a business. You may contact the business direct with any questions.

28. What happens if the business borrower misses a repayment?

This would need to be discussed and negotiated directly with the business borrower.

29. Can I ask the business to repay a loan early?

This would need to be discussed and negotiated directly with the business borrower.

Please Contact Us with any further questions.

Interested in investing with funding4business?

If you would like to list as an investor or lender on our marketplace, please send us an email and we will be in touch.

info@funding4business.com.au

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