FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Woodcroft Small Business Loans
Let me know what you think of the Woodcroft Small Business Loans
Woodcroft unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
You can apply for your Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and the money could be available in just 24 hours. Traditional business loans reference an annual rate of interest as well as other fees and charges. We offer a business loan is an upfront priced loan therefore you’ll know ahead of time the total amount to be paid, including any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company need, such as the management of cash flow, company improvements, advertising to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
About Larger Woodcroft Business Loans
What is the Larger Woodcroft Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been trading for at least 3 years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funds for?
A large business loan can be used to fund almost any business need, including business improvements, purchasing equipment or inventory for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It is usually by taking a charge against assets, and could be registered through the PPSR or making a caveat.
A director’s or personal guarantee is a promise to repay a loan which is general in nature rather than stating security over a particular asset. The person who signs the guarantee is personally responsible if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR gives priority over personal property to be granted depending on the date that a security interest has been registered.
An affidavit is an official form of document to offer the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250K it is possible to offer an initial pre-approval in order to smooth out the process. We might be able to apply for this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial health checks. It’s neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you receive could be subject to different terms.
The application process
Can I be eligible for funding?
You may be eligible for a 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 worth of trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in just a few minutes, and an experienced company lending specialist will contact you to help you.
To apply for up to $100,000 you’ll need the right identification documents (valid Driver’s License) and an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent and 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) We can usually provide an answer within one hour, provided you apply in standard company time and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statement, we’ll provide the decision in just one business day.
For Larger Business Loans ($100K to $500K) we may be able to provide you with a conditional pre-approval in about 6 hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Certain deals have been approved in just 24 hours.
The quickest way to apply would be to ensure you apply during standard business hours. Also, allow us to use the advanced bank verification system link to check your bank’s information online. If you decide to send us duplicates of your banking statements it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer in just one hour – as long as you submit your request within normal business times and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statements, we will be able to offer the decision in just the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we might be in a position to offer the conditional pre-approval within 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Some agreements have been approved within less than 24 hours.
The most efficient method can be ensure you apply during normal business hours. You can also allow us to use the advanced bank verification system to check your bank’s information online. If you upload the copies of bank statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount we will consider a number of elements in order to assess how much we can lend you health of your business and the extent of payments your company will be able to support. The total amount of your loan will be contingent on the particular circumstances for your company.
If you apply for a particular amount, we take into consideration a variety of aspects to determine how much we can lend you such as well-being of your business and the amount of repayments your company can support. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How much should you charge for an business loan?
When you request business loans with us business credit, we will assess the risk profile that you have for your business and offer you with a customised proposal that includes the amount of loan, the term and the interest rates. A business loan is an upfront priced loan so you will know the exact amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I pay?
The interest rates on business loans rates vary due to factors such as the amount that is borrowed, the company assets the funds are used to purchase, the industry the business is operating in, how long the company is in operation, whether the business has sufficient cash flow to support the loan, as well as the overall health as well as creditworthiness company.
What are the costs?
There are no hidden fees with our business loans. You’ll be aware of the amount you need to pay, and at what time, from the first day. There’s no compounding interest, and no extra fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can apply for a loan with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Can I repay the loan in advance?
You may choose to pay back the entire amount of the loan at any point in time.
If you decide to take this route, please contact our helpful company loans professionals. They will offer you with details for repayment and an early payout figure. This is calculated as the total of the principal remaining and any accrued interest at the time of early payment and 1.5% of the principal balance and any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear the ways we gather the information we collect, use, share and ensure the security of your information is vital and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We use an advanced banking verification system to instantly verify the bank account details online so we can offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner borrows from assets they own to obtain a loan. The asset may be a personal asset like the family home, or it could be a company property like a truck or piece of equipment.
The majority of the lenders even the major banks, prefer to guarantee loans against an asset. If you have trouble paying back the loan, then your assets could be sold by the lender. In essence it’s the process of securing additional financing taking advantage of the value of what you already have.
Do I require security to get an company loan?
Up to $150K in loans no asset security is required in advance to gain access to the funds however, we do need an individual guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract document) Asset security is not needed. For loans of over $150K generally there is an individual ensure and security in the form of the charge of assets.