FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Walkley Heights Small Business Loans
Let me know about the Walkley Heights Small Business Loans
Walkley Heights unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from a traditional business loan?
The application to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the money could be on your account within 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. The company loan is a pre-paid loan which means you know ahead of time the total amount payable including the interest, fees and charges. This is then broken down into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business purpose including cash flow management, business improvements, advertising for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available for personal reasons.
About the Larger Walkley Heights Business Loans
What is the Larger Walkley Heights Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit of this size, your business needs to have been operating for a minimum of 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used to fund almost any business purpose including company improvements, purchasing equipment or inventory for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It is usually in the form of a charge over assets and can be registered in the PPSR or registering as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is generally in nature rather than stating security over a particular asset. The person who is signing the ensure is personally accountable if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be assigned according to the date a security interest that is registered.
The caveat can be described as a formal form of document to offer the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans that is greater than $250K it is possible to offer an initial pre-approval in order to make the process. It is possible to do this without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial well-being questions. It is neither an offer nor a guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer that you are offered could have different conditions.
Application process
Are I eligible for funding?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a few minutes and an experienced company lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we usually provide a response in one hour, provided you submit your request within standard company times and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we are able to offer a decision in just an company day.
For the Larger Business Loan ($100K up to $500,000) we could be capable of offer you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be quicker based upon the circumstances for each application. Some offers have been approved in just 24 hours.
The most effective method for you to apply is ensure you apply during normal company hours. You can also allow us to use the advanced bank verification system link to confirm your bank details online. If you opt to send us documents from your account statements , it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour – as long as you make your application within normal business hours and let us utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statement, we’ll offer an answer in just an business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of offer you with conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Some transactions have received approval in 24 hours.
The most efficient method is to ensure you apply during normal business hours. You can also allow us to use our advanced bank verification system link to verify your bank information online. If you decide to send us copies of your bank statements it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a certain amount, we take into consideration a range of variables that determine your health of your business as well as the amount of payments your business is able to afford. The amount you receive from your loan will be contingent on the specific circumstances of your business.
When you submit an application for a certain amount, we take into consideration a variety of variables to determine the well-being of your business as well as the amount of repayments your business can afford. The total amount of your loan will be contingent on the particular circumstances of your business.
Fees & repayments
How much should you charge for the cost of a business loan?
When you make an application for one of our business credit, we will assess the risk assessment for your business and provide you with a customised offer, including the amount of loan, the term and the interest rates. The company loan is an upfront priced loan therefore you will be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I pay?
Interest rates for business loans rates depend on several factors like the amount of money borrowed, the company assets the money will be used for and the sector the company operates in, the long the company has been in operation as well as in the event that the company has enough cash flow to cover the loan, and the general health or financial standing of the company.
What are the fees?
There are no hidden costs with our company loans, and you’ll know exactly how much it is that you be required to pay, and when, starting from the day you sign up. There’s not any compounding interest and no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You can request a credit loan no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated with the setting up and management of the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You may choose to pay back the total amount of your loan in full at any time.
If you decide to take this route, please talk to one of our helpful business lending specialists. The professionals will provide you with details for repayment along with an early payout estimate. It will be calculated using the total of the principal amount remaining plus any accrued interest as of the time of early payout, plus 1.5% of the principal remaining plus any outstanding fees.
What are the repayment methods?
To make sure you do not miss payment dates and to align your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear the ways we gather information, use it, and exchange it, as well as safeguard your data, is of huge importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We make use of an advanced bank verification system that allows you to immediately verify your bank account information online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the business owner makes use of an asset they own to secure the loan. The asset can be an asset belonging to the personal, like the family home, or it could be a business asset like a truck or piece of equipment.
The vast majority of the lenders not just the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan, your asset may be transferred to the lender. In essence it is a way of securing additional financing making use of the value of what you already have.
Are I require security for an company loan?
Up to $150K in loans it is not necessary to secure assets prior to the loan’s access, however we do need the personal guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract) Asset security is not required. For loans of over $150,000 generally there is the option of a personal ensure and security is provided in the form of the charge of assets.