What the initial payment-free period means
Up to six months without scheduled payments is not interest-free. Interest is added to the loan balance during the approved capitalised-interest period, increasing the amount owed. The actual period and structure depend on assessment and the final loan documents; monthly interest payments apply afterward under the approved terms.
Use working capital for a defined result
Connect the amount to a stock cycle, contract mobilisation, seasonal build-up, supplier payment or other measurable business outcome. Prepare a cash-flow forecast showing how the business meets monthly interest after any capitalised period and repays or refinances the facility.
How fundU approaches the scenario
fundU is the lender. It does not send your details to a panel of lenders or operate as a matching service. The credit team considers the purpose, security, supporting information and complete circumstances directly.
Every approval, loan structure and timeframe depends on the individual application. Enquiring does not guarantee approval, and property used as security may be at risk if the loan is not repaid.
A useful next step
Start with the complete scenario
Tell fundU what the business needs, when it is needed, what property security is available and how the facility is expected to be repaid or refinanced.
See if you qualifyQuestions borrowers ask
Frequently asked questions
Does fundU offer six months with no payments on every loan?
No. An approved facility may allow up to six months without scheduled payments, with interest capitalised. Eligibility, length and terms depend on assessment and the final documents.
Is capitalised interest free?
No. Capitalised interest is added to the loan balance, so the amount owed increases during that period.
What happens after the capitalised-interest period?
Under the product information supplied by fundU, monthly interest payments apply afterward, subject to the approved facility and documents.
Authoritative sources
General guidance used to help explain the topic. It is not personal financial, tax or legal advice.