FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Willunga Small Business Loans
Let me know how you are able to avail the Willunga Small Business Loans
Willunga unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from a traditional company loan?
You can apply for your Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and funds may be in your account within 24 hours. Traditional business loans reference an annual rate of interest together with additional fees and charges. This business loan is a cash-based loan therefore you’ll know in advance the amount you will have to pay, including any fees, interest or charges. This is then broken down into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company need, such as the management of cash flow, business improvements, advertising to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal purposes.
Concerning Larger Willunga Business Loans
What is the Larger Willunga Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the company needs to be operating for at least three years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A Larger Business Loan is a great option for almost any business need, including company remodeling, buying inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. This can be done by taking a charge over assets, and could include the registration of this with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally in nature rather than defining the security of a specific asset. The person signing the ensure is personally liable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR grants preference over private property assigned depending on the date that a security interest was registered.
The caveat can be described as a formal document filed to offer the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval that will help make the process. It is possible to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial health checks. This is not an offer or guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you may receive may be based on different conditions.
The application process
Can I be eligible for funding?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Just complete the online application in few minutes and an experienced business loan specialist will contact you to help you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K and up) we typically provide an answer in just one hour – as long as you submit your request within quality business times and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statement, we’ll offer an answer in as little as an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely to provide you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain offers have been approved in the space of 24 hours.
The fastest way can be ensure you apply during normal company hours and allow us to use our advanced bank verification system to verify your bank account information online. If you choose to upload the copies of bank statements , it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within one hour – as long as you apply during normal business hours and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements, we are able to provide a decision within 1 business day.
For Larger Business Loans ($100K and up) we may be in a position to provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours, and allow us to use the advance bank verification link to confirm your bank details online. If you choose to upload the copies of bank statements, it will take a little longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we will consider a number of elements for determining your well-being for your company and the level of payments your company can afford. The amount you receive from the loan will be determined by the particular circumstances that are unique to your business.
When you apply for a set amount, we consider a variety of variables to determine how much we can lend you such as health for your company as well as the amount of repayments that your business can support. The total amount of your loan will depend on the specifics of your company.
Fees & repayments
How do you charge for a company loan?
When you make an application for the business loans, we will assess the risk assessment for your business and offer you with a customised offer, including loan amount, term and interest rates. This company loan is a loan that is priced upfront therefore you will know in advance the total amount payable including any costs, fees, or interest rates.
What determines the rate that I will be charged?
Business loan interest rates depend on a variety of factors like the amount of money borrowed, the business assets the money will be used for, the industry the business operates in, the long the business has been running for, whether the business has enough cash flow to fund the loan, and the general health or creditworthiness of the company.
What are the cost?
There aren’t any hidden costs with our company loans, and you’ll be aware of the amount it is that you be required to pay, and at what time, from the first day. There’s no compounding interest and no extra fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to make an application for loans with with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan early?
You can repay all of your loan in full at any time.
If you are deciding to take this route, please speak to our friendly company loans specialists. They’ll offer you with the details of your repayment and an early payout figure. This is calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payout plus 1.5% of the remaining principal and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we offer repayments either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear the ways we gather the information we collect, use, share and safeguard your data, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We utilise a sophisticated banking verification system to immediately verify the bank account details online, allowing us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the company owner makes use of the assets they have to obtain the funding. The asset can be either an individual property, such as the family home, or an business property like a truck or other piece of machinery.
The majority of banks, even the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan, the asset could be taken over by the lender. In essence, it’s the process of securing new financing by taking advantage of the value of what you already have.
What do I require security to get a business loan?
For loans that exceed $150K, no asset security is required upfront to access the money However, we require a personal guarantee. need the personal guarantee. In the event that you fulfill the terms of your loan (as detailed in the loan contract) the security of assets will never be needed. If you take out loans in excess of $150,000 generally there is an individual ensure and security is provided in the form of an asset charge.