FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The West Richmond Small Business Loans
Tell me how you can avail the West Richmond Small Business Loans
West Richmond unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
You can apply for the Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and the funds could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum as well as other fees and charges. The company loan is an upfront priced loan and you’ll be aware in advance of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either weekly or daily payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company reason, such as cash flow management, business improvements, advertising for purchasing inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger West Richmond Business Loans
What is the Larger West Richmond Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are scheduled 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 that is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large the company needs to be trading for at least 3 years, and have an annual income of $700K. 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 of proving at least 12 months of trading.
What can the funds be used for?
A larger business loan can be used to fund almost any business need, including business renovations, to purchase inventory or new equipment or as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It’s by taking a charge against assets, which could also be registered with the PPSR or making as a caveat.
A director’s or personal guarantee 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 business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR allows preference over private property assigned according to the date a security interest has been registered.
An affidavit is an official document lodged to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000 we can offer an initial pre-approval in order to ease the process. We could be able to apply for this without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes you answering some financial health checks. This is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an extensive credit evaluation and any offer that you may receive may be based on different conditions.
The application process
Do I have the right to receive funds?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (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 in few minutes and a dedicated company credit specialist will call you to help you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s Licence) and a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application 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 and 12 months of bank statements, IRD statement, last 2 years finalised financial statements, plus interim financial statements for the current year, Aged Payables and Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) We can usually provide a response in one hour if you apply at quality business time and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statements , we’ll be able to provide an answer in as little as one business day.
For the Larger Business Loan ($100K up to $500,000) we could be able to provide the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some deals have been approved in 24 hours.
The fastest way would be to ensure you apply during standard company hours. You can also allow us to use the modern bank verification link to verify your bank information online. If you upload copies of your bank statement, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we usually provide an answer in just one hour if you make your application in normal business timings and let us make use of the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements, we’ll be able to offer the decision in just 1 business day.
For the Larger Business Loans ($100K or more) we may be capable of provide you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Certain deals have been approved in just 24 hours.
The most effective method for you to apply is ensure you apply during standard business hours. Also, allow us to use our advance bank verification link to instantly verify your bank information online. If you upload documents from your account statements, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a specific amount we look at a variety of elements to determine what is the health that is your business and the amount of payments your business can support. The amount you receive from your loan will be contingent on the particular circumstances for your business.
If you apply for a set amount, we look at a range of factors to determine your health that is your company and the level of repayments that your company will be able to support. The total amount of the loan will be determined by the specific circumstances that are unique to your company.
Fees & repayments
What is the cost for a business loan?
When you apply for our business credit, we will assess the risk assessment for your company and provide an individualised offer that includes the amount of loan, the term and interest rates. This business loan is an upfront cost loan therefore you will be aware in advance of the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I pay?
The interest rates on company loans rates differ based on various factors such as the amount that is borrowed, what company assets the money will be used for as well as the field the business is operating in, how long the business is in operation for, in the event that the company has sufficient cash flow to pay for the loan, and the overall well-being as well as creditworthiness company.
What are the costs?
There aren’t any hidden charges with our business loans. You’ll know exactly how much it is that you need to pay and at what time, from day one. There’s no compounding interest, and no extra fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to get a cash loan with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan early?
You can repay the total amount of your advance loan at any time.
If you choose to do this please speak to our friendly business loans specialists. We will provide you with repayment details and an early payment figure. The figure will be calculated as the total of the principal amount remaining and accrued interest to the time of early payment in addition to 1.5% of the principal amount remaining and any outstanding fees.
How do repayments work?
To ensure you do not miss repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing how we collect information, use it, and exchange it, as well as protect your information, is of paramount importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and security. We use an advanced bank verification system to instantly confirm your bank account information online, allowing us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner makes use of assets they own to make the loan. The asset can be a personal asset like the family home or an company asset such as a truck or piece of equipment.
The majority of lenders, including the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan then the asset might be transferred to the lender. In essence, it is the process of securing new financing making use of the value of what you already have.
Are I need security to get an business loan?
For loans that exceed $150,000, there is no requirement for asset security upfront to access the money but we do need a personal guarantee. In the event that you fulfill the loan terms (as stated in the loan contract), asset security is not needed. For loans that exceed $150,000, generally, there is the option of a personal guarantee and security that is in the form charges on assets.