A loan is paid principal and interest for the agreed term of the loan. The debt at the¬†end is usually zero on the last payment.
This may be for a set sum- a balloon payment, although this is usually linked to¬†specific projects and due to cash flows tied in to the loan proposal.
Loans are suitable for commercial/business and personal borrowers. There is no tax¬†advantage for personal borrowers as the asset financed is for personal use, and not¬†in the course of generating revenues.
Businesses should seek advice from their financial advisor in relation to tax¬†deductibility.
Personal Loans are for borrowers who are seeking assistance for such things as a new car, bus or vehicle. Minimums apply, please contact us or click here for a personal loan inquiry.
A commercial loan is to acquire a commercial property or other asset by a person or registered entity for commercial purposes- such as buying an
Insurance Premium Funding (IPF)
IPF is to assist companies with loans for up to 9 months to cover the annual cost of insurance premiums. The usual starting amount if PGK50,000¬†The IPF can cover most types of insurances a company is required to hold.
Real Estate Property Loans
This is for the purposes of short term real estate property lending, usually for commercial purposes. Terms of lending usually extend up to five years as a maximum.
Property Construction and Development Loans
An investment type loan for the construction and or development of property in PNG. A typical client is a company that is looking to invest into land it¬†may hold or be buying, and FIFL is asked to assist in the costs of developing the property. EG units, commercial factory etc.
Short Term Property Loans
A short term investment of a commercial nature- potentially where FIFL provides settlement funding for the client pending a full take out. The term¬†may be up to say 18 months.
Security Bond Guarantees
A guarantee that is made on your behalf to an institution or person. This can be when importing goods and a bond is required, the end payment of a¬†construction that is guaranteed or when the government asks for a Security Guarantee for a works project.