FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Warradale Small Business Loans
Tell me how you can avail the Warradale Small Business Loans
Warradale unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and funds may be in your account within 24 hours. Traditional company loans have an interest rate per annum as well as other fees and charges. This company loan is a pre-paid loan so you will be aware in advance of the total amount due, which includes any fees, interest or charges. Then, it is broken down into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company need, such as the management of cash flow, business improvements, advertising for purchasing inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
About the Larger Warradale Business Loans
What is the Larger Warradale Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. The repayments are made weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to be 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) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be utilised?
A large company loan is a great option for almost any company reason, such as business renovations, to purchase inventory or new equipment or as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It is usually in the form of a charge on assets, which could also include registering this with the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally based rather than defining the security for a particular asset. The person signing the guarantee is personally liable in the event that the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR allows priority over personal property to be granted according to the date the security interest that is registered.
An affidavit is an official form of document to offer the public notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250,000 we can offer an initial pre-approval that will help ease the process. We may be able to get this done without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial well-being checks. It’s not an offer or guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be subject to different terms.
Application process
Do I qualify for funds?
You may be eligible for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and an experienced business credit specialist will be in touch to guide you.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we usually provide an answer in just one hour – as long as you submit your request within standard business timings and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your banking statement, we’ll offer the decision within an business day.
For Larger Business Loans ($100K or more) we may be likely to offer you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Some deals have been approved within the space of 24 hours.
The quickest method can be ensure you apply during standard company hours and allow us to use our advance bank verification to verify your bank information online. If you decide to send us documents from your account accounts, it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within an hour, provided you apply during standard business timings and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statement, we’ll provide the decision within the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be able to provide you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Certain agreements have been approved in just 24 hours.
The quickest method is to ensure you apply during normal business hours, and permit us to use the modern bank verification link to verify your bank information online. If you choose to upload documents from your account statement, it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a particular amount, we take into consideration a range of elements in order to assess how much we can lend you health of the business and the level of repayments that your company is able to afford. The total amount of the loan will be determined by the specifics of your company.
When you submit an application for a particular amount, we will consider a number of aspects to determine the well-being for your business and the level of repayments that your company can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
How much do you charge for an company loan?
If you decide to request business loans with us business credit, we will assess the risk profile for your business and offer an individualised offer that includes the amount of the loan, the duration and the interest rates. The business loan is a loan that is priced upfront which means you be aware of the total amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I am charged?
The interest rates on business loans rates differ based on various factors including the amount borrowed, the company assets the funds will be used for as well as the field the company is operating in, how long the business has been in operation and what percentage of the business has sufficient cash flow to cover the loan, as well as the general health or creditworthiness of the company.
What are the cost?
There aren’t any hidden charges with our company loans. You’ll know exactly how much you’ll be required to pay, and when, from the first day. There’s no compounding interest and there are no additional charges (as long as you make your payments punctually).
We do not charge an Application Fee. You can make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay all of your loan in full at any time.
If you do decide to do this please call our helpful company loan experts. They will offer you with details on repayment along with an early payout estimate. This is calculated as the sum of the remaining principal amount and any accrued interest at the date of early payout and 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
To make sure you do not miss payments and to work your cash flow schedule, we provide payments that are either daily or weekly. They will be automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about the ways we gather data, process, exchange and secure your information, is of paramount importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We use an advanced bank verification system that allows you to immediately confirm your bank account information online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an company owner utilises assets they own to obtain the funding. The asset may be a personal asset like the family home or it could be a business asset like a truck or other piece of machinery.
The vast majority of lenders, not just the big banks, tend to make loans secured by assets. If you have trouble paying back the loan, the asset could be offered for sale by the lender. In essence it’s an opportunity to secure new financing using the value of what you already have.
What do I require security for a company loan?
For loans of up to $150,000, there is no requirement for asset security before you are able to access the money but we do need the personal guarantee. As long as you follow the terms of your loan (as specified in your loan contract), asset security will never be required. If you take out loans in excess of $150,000 generally, you are able to get the option of a personal ensure and security in the form an asset charge.