FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The West Lakes Small Business Loans
Tell me how you can avail the West Lakes Small Business Loans
West Lakes unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
It is possible to apply to this Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and funds may be in your account in 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. Our company loan is a loan that is priced upfront therefore you’ll know in advance the total amount due, which includes any fees, interest or charges. Then, it is broken down into either weekly or daily installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company reason, such as cash flow management, business renovations, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger West Lakes Business Loans
What is the Larger West Lakes Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to have been in operation for at least 3 years and have an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can the funding be used for?
A Business Loan of a larger size can be used for almost any business reason, such as business improvements, purchasing new equipment or inventory for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. It is usually in the form of a charge over assets, which could also include the registration of this on the PPSR or registering as a caveat.
A director’s or personal ensure is a promise to pay off a credit line that is generally based rather than specifying the security for a particular asset. The person who signs the ensure is personally responsible if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR gives the priority of personal property assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal document lodged to provide the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans of $250K or more we can offer a preliminary pre-approval to help make the process. We may be able to do this without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial well-being questions. This is neither an offer nor a guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer you receive could have different terms.
The application process
Can I be eligible for funding?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form within a couple minutes, and a dedicated company expert in lending will contact you to guide you through the process.
To be eligible for up to $100,000 you’ll require the right identification documents (valid Driver’s License), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent twelve months bank statement, an IRD statements 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 or more) we typically provide an answer in just one hour if you make your application within quality business time and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements , we are able to provide the decision in as little as an business day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be in a position to provide you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Certain deals have been approved in just 24 hours.
The most effective method would be to ensure you apply during standard company hours, and allow us to use our modern bank verification link to instantly confirm your bank details online. If you opt to upload the copies of bank accounts, it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer in just one hour – as long as you make your application within normal business hours and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements, we are able to offer a decision in just one business day.
For the Larger Business Loans ($100K and up) we may be likely to provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some offers have been approved in the space of 24 hours.
The fastest method would be to make sure you apply during standard business hours. Also, let us use the modern bank verification to check your bank’s information online. If you choose to upload documents from your account statements it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount, we will consider a number of factors in order to assess your health of the company as well as the amount of repayments that your company will be able to support. The total amount of the loan will be determined by the specific circumstances for your business.
When you make an application for a set amount, we take into consideration a variety of variables to assess how much we can lend you such as well-being that is your company and the amount of repayments your company is able to afford. The amount you receive from the loan will be determined by the particulars that are unique to your company.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to make an application for business loans with us business loan, we will assess the risk profile for your business and provide you with a tailored offer, including the amount of the loan, the duration and interest rates. This business loan is an upfront-priced loan so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the rate that I pay?
Interest rates for business loans rates differ based on various factors like the amount of money that is borrowed, what company assets the money will be used for as well as the field the company is operating in, how long the company is in operation and whether the business has sufficient cash flow to cover the loan, and the overall well-being or financial standing of the business.
What are the charges?
There are no hidden fees for our company loans, and you’ll know precisely how much you’ll need to pay and when, right from the first day. There’s no compounding and no additional fees (as as you make your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan in advance?
You may choose to pay back the entire amount of the advance loan at any time.
If you are deciding to do this please talk to one of our helpful company loan professionals. The professionals will provide you with repayment details and an early payout figure. This is calculated as the total of the principal balance and the accrued interest up to the time of early payment in addition to 1.5 percent of the remaining principal and any fees that remain unpaid.
How do repayments work?
To ensure you do not miss payment dates and to align your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about how we collect the information we collect, use, share and secure your information, 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 make use of industry-standard encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We employ a highly sophisticated bank verification system that allows you to instantly verify your bank account information online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the business owner borrows from an asset that they own to get the funds for a loan. The asset could be an asset belonging to the personal, like the family home, or it could be a business asset such as a truck or piece or equipment.
The majority of lenders, not just the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, then your assets could be sold by the lender. In essence it’s means of securing new funding using the value of what you already have.
Are I need security to secure a business loan?
For loans of up to $150K, there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. require a personal guarantee. So long as you comply with your loan obligations (as specified in the loan contract) Asset security is not required. For loans of over $150,000 generally, you can get the option of a personal ensure and security that is in the form charges on assets.