FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The West Lakes Shore Small Business Loans
Let me know how you can avail the West Lakes Shore Small Business Loans
West Lakes Shore unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from a traditional business loan?
The application to your Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and the funds could be in your account in 24 hours. Traditional business loans are based on an annual interest rate plus other fees and charges. The company loan is a loan that is priced upfront therefore you’ll know in advance the total amount payable including any fees, interest or charges. This is then broken down into weekly or daily installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business need, such as cash flow management, business renovations, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal reasons.
About the Larger West Lakes Shore Business Loans
What is the Larger West Lakes Shore Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to have been operating for at least three years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly every business need, including business improvements, purchasing new equipment or inventory for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This is by taking a charge over assets, which could also include the registration of this in the PPSR or filing a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally accountable if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR permits the priority of personal property granted depending on the date that a security interest was registered.
The caveat can be described as a formal document filed to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of more than $250K we can offer a preliminary pre-approval to help smooth out the process. We might be able to do this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering some financial health checks. This is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer you might receive could be based on different terms.
The application process
Do I qualify for funds?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in just a few minutes, and a dedicated company credit specialist will be in touch to guide you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we typically provide an answer within one hour – as long as you make your application during quality business times and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your bank statements , we will be able to offer an answer within just the span of one business day.
For Larger Business Loans ($100K to $500K) we could be capable of offer you with 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 it could be faster based on the circumstances of each application. Certain offers have been approved within the space of 24 hours.
The most effective method would be to make sure you apply during standard company hours. You can also permit us to use the advance bank verification to confirm your bank details online. If you decide to send us copies of your bank statements it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour – provided you make your application in standard business hours and permit us to use the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statements, we are able to offer an answer in just an business day.
For Larger Business Loans ($100K to $500K) we may be capable of provide the conditional pre-approval within six hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this can be faster depending on the circumstances of each application. Certain deals have been approved in 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours, and let us use the modern bank verification link to instantly check your bank’s information online. If you send us documents from your account statements it can take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a certain amount, we consider a variety of variables for determining your well-being that is your company and the level of repayments that your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
If you apply for a certain amount, we look at a range of elements to assess your well-being of your company and the level of repayments your business can support. The total amount of your loan will be contingent on the particulars that are unique to your business.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to make an application for our company credit, we’ll assess the risk assessment of your company and offer you with a customised offer that includes the amount of loan, the term and interest rates. This business loan is an upfront priced loan which means you be aware of the total amount payable including any interest rates, fees or charges.
What determines the amount I pay?
Business loan interest rates vary due to variables like the amount to be borrowed, the company assets the funds will be used for, the industry the company operates in, the long the business is in operation as well as what percentage of the business has sufficient cash flow to pay for the loan, as well as the general health and creditworthiness of the business.
What are the charges?
There are no hidden costs for our company loans, and you’ll be aware of the amount you need to pay and at what time, from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan early?
You may choose to pay back all of your loan in full at any time.
If you do decide to take this route, please call our helpful business loans professionals. We will provide you with the details of your repayment and an early payout figure. It will be calculated using the total of the principal balance plus any accrued interest as of the time of the early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about the ways we gather, use, exchange and protect your information, is crucial 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 protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We employ a highly sophisticated banking verification system to immediately verify your bank account information online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner utilises assets they own to get the funds for a loan. The asset may be an individual asset, such as the family home, or it could be a business asset such as a vehicle or other piece of machinery.
The majority of lending institutions, including the banks with the biggest size, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, your asset may be offered for sale by the lender. In essence it is an opportunity to secure additional financing using the value of what you already have.
Do I need security for an business loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access however, we require a personal guarantee. need an individual guarantee. If you adhere to the terms of your loan (as stated in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150,000 typically, you will need a personal guarantee and security in the form of the charge of assets.