FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Woodville West Small Business Loans
Tell me what you think of the Woodville West Small Business Loans
Woodville West unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
Apply to get this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans have an annual rate of interest as well as other fees and charges. We offer a company loan is an upfront priced loan and you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. Then, it is divided into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business use, including the management of cash flow, company remodels and marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal purposes.
About Larger Woodville West Business Loans
What is the Larger Woodville West 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 fixed-term for up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to have been trading for at least 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be used for?
A Larger Business Loan can be used to fund almost all company need, including company improvements, purchasing inventory or new equipment or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. It’s as a result of an charge against assets and can be registered in the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is general in nature, rather than specifying the security of a specific asset. The person signing the ensure is personally accountable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be assigned according to the date a security interest was registered.
The caveat can be described as a formal document filed to offer an official notice of a claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250K, we may offer an initial pre-approval in order to simplify the process. We could be able to get this done without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial health questions. It is not an offer or guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer that you receive could be subject to different conditions.
The application process
Do I have the right to receive funds?
You may apply 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 transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form in just a few minutes, and a dedicated business lending specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent twelve months bank statement, an IRD statements Last 2 years’ finalised financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we typically provide an answer within an hour – as long as you submit your request at standard company hours and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements we can offer a decision in as little as an business day.
For the Larger Business Loan ($100K and up) we could be likely to provide the conditional pre-approval within six 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 upon the circumstances for each application. Some transactions have received approval within less than 24 hours.
The most efficient method would be to ensure you apply during normal business hours and let us use the advance bank verification link to check your bank’s information online. If you choose to send us documents from your account statements it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) We can usually provide an answer within one hour if you submit your request within normal business times and let us use the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements, we are able to provide an answer in as little as an business day.
For the Larger Business Loans ($100K up to $500,000) we could be likely to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved in 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. You can also let us use the sophisticated bank verification link to confirm your bank details online. If you decide to send us copies of your bank statements, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a particular amount, we take into consideration a range of elements to determine the well-being for your company as well as the amount of repayments your company will be able to support. The total amount of your loan will be contingent on the specifics that are unique to your business.
When you apply for a certain amount, we take into consideration a variety of factors to determine how much we can lend you such as well-being for your company as well as the amount of repayments that your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances for your business.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to apply for our company credit, we will assess the risk assessment of your company and provide you with a customised offer that includes loan amount, term and the interest rates. It is a company 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 rate that I am charged?
Business loan interest rates depend on several factors such as the amount that is that is borrowed, what company assets the funds are used to purchase and the sector the company is in, how long the company is in operation and whether the company has sufficient cash flow to support the loan, and also the general well-being or financial standing of the business.
What are the cost?
There are no hidden costs for our business loans. You’ll know precisely what you be required to pay, and at what time, from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an application fee. You can make an application for loans without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan early?
You can decide to repay the total amount of your loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful company loans specialists. They’ll offer you with the details of your repayment as well as an early payout amount. The figure will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payment, plus 1.5 percent of the principal balance plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about the ways we gather data, process, exchange and protect your information, is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system to instantly verify your bank account information online. This allows us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner uses an asset that they own to get the loan. The asset can be either a personal asset like the family home or it could be a company asset such as a vehicle or piece or equipment.
The vast majority of the lenders not just the banks with the biggest size, prefer to secure loans against assets. If you have trouble paying back the loan, the asset might be taken over by the lender. In essence, it’s means of securing new financing using the value of what you already have.
What do I need security for an business loan?
For loans of up to $150K, no asset security is required in advance to gain access to the funds, however we require a personal guarantee. require a personal guarantee. So long as you comply with the terms of your loan (as detailed in your loan contract) the security of assets will never be required. For loans over $150,000 generally there is personal guarantee and security is provided in the form of charges on assets.