FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The West Croydon Small Business Loans
Let me know more about West Croydon Small Business Loans
West Croydon unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from a traditional business loan?
Apply to your Small Business Loan in under 10 minutes over the phone, receive an instant response and funds may be in your account in 24 hours. Traditional company loans refer to an interest rate per annum plus other fees and charges. This company loan is a cash-based loan therefore you’ll be aware of the amount you will have to pay, including any fees, interest or charges. Then, it is divided into a daily or weekly payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as the management of cash flow, company remodeling, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal reasons.
About larger West Croydon Business Loans
What is the Larger West Croydon Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to have been trading for at least 3 years and generate an annual revenue of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used to fund almost all company need, including company renovations, purchase of inventory or new equipment or as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. This can be done by taking a charge on assets, which could also be registered through the PPSR or the registration of as a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is generally in nature rather than defining security over an asset. The person who is signing the ensure is personally liable in the event that the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date the security interest has been registered.
A caveat is a legal form of document to provide an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan of $250,000 or more we can offer a preliminary pre-approval to help make the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes you answering a few financial health checks. This is not an offer of credit or guarantee of financing. A conditional approval is subject a full credit assessment and any offer that you are offered could be subject to different conditions.
Application process
Can I be eligible for funding?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application within a couple minutes, and an experienced company expert in lending will call you to assist you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank statements, IRD statement, last 2 years finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K and up) We can usually provide a response in one hour – as long as you apply at standard business timings and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statement, we’ll provide an answer within the span of one company day.
For Larger Business Loans ($100K or more) we might be likely to provide you with a conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be quicker based on the specifics of each application. Some offers have been approved in 24 hours.
The most effective method can be ensure you apply during standard business hours and let us use the modern bank verification to instantly check your bank’s information online. If you opt to upload copies of your bank statements , it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we can often offer an answer within an hour if you submit your request at normal business times and you allow us to use the bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statements we can provide an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we may be likely to provide you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within 24 hours.
The fastest method is to ensure you apply during normal business hours and permit us to use the modern bank verification to verify your bank information online. If you opt to send us the copies of bank statement, it takes a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of elements that determine your well-being for your business and the level of repayments that your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your company.
If you apply for a particular amount, we look at a range of variables to determine how much we can lend you such as health of your company and the extent of the repayments your business can afford. The amount you receive from your loan will be determined by the particular circumstances that are unique to your business.
Fees & repayments
What is the cost for the cost of a business loan?
When you apply for one of our business loans, we will assess the risk assessment the business and provide you with a customised offer including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront-priced loan and you’ll be aware of the total amount to be paid, including any charges or interest.
What is the basis for the rate I pay?
Interest rates for company loans rates depend on a variety of variables like the amount to be that is borrowed, what business assets the funds will be used for and the sector the company operates in, the long the company has been operating, in the event that the company has enough cash flow to pay for the loan, and the overall well-being or financial standing of the business.
What are the fees?
There aren’t any hidden costs for our business loans. You’ll know precisely what it is that you be required to pay, and when, from the very first day. There’s no compounding and there are no additional charges (as as you make your payments in time).
We don’t charge an Application Fee. You can make an application for loans with without any upfront costs or obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan in advance?
You can choose to repay the total amount of your loan in full at any time.
If you decide to do this please contact our helpful business credit professionals. We will provide you with the details of your repayment and an early payout figure. The figure will be calculated as the sum of the principal balance and any accrued interest at the time of the early payout in addition to 1.5% of the principal balance and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and safeguard your data, is of paramount importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We make use of an advanced bank verification system to immediately verify the bank account details online. This allows us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner uses the assets they have to make a loan. The asset could be an asset belonging to the personal, like the family home, or a company property like a truck or other piece of machinery.
The majority of lenders, including the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, the asset might be sold by the lender. In essence, it’s an opportunity to secure new financing using the value of what you already own.
What do I need security to get a company loan?
Up to $150,000 in loans there is no requirement for asset security before you can access the money However, we require a personal guarantee. require the personal guarantee. If you adhere to the loan terms (as specified in your loan contract document), asset security is not needed. For loans over $150K generally, you can get personal ensure and security in the form of charges on assets.