FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wellington Small Business Loans
Tell me how you can avail the Wellington Small Business Loans
Wellington unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
You can apply to get this Small Business Loan in under 10 minutes over the phone, receive a same day response and have the funds on your account within 24 hours. Traditional company loans refer to an annual interest rate as well as other fees and charges. We offer a company loan is a loan that is priced upfront so you will know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then broken down into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company need, such as the management of cash flow, company renovations, marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Wellington Business Loans
What is the Larger Wellington Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been in operation for at least 3 years and generate an annual revenue of $700K. It is necessary to 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 least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used for nearly every company reason, such as business renovations, purchase of equipment or inventory as well as for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It is usually by taking a charge against assets, and could include the registration of this on the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature rather than defining the security for a particular asset. The person who is signing the ensure is personally responsible if the company creditor is unable 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 which are registered with respect to personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be assigned according to the date a security interest that is registered.
Caveats are legal document lodged to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger company loans of more than $250,000 we can offer an initial pre-approval in order to smooth out the process. We may be able to do this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering some financial health questions. This is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may be subject to different conditions.
The application process
Do I qualify for funds?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a couple minutes, and a dedicated business loan specialist will call you to help you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger 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 bank statement, an IRD statement, last 2 years finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we usually offer an answer in just one hour if you apply at quality business times and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements , we are able to provide an answer within an business day.
For the Larger Business Loan ($100K or more) we could be able to offer you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain agreements have been approved within just 24 hours.
The quickest method would be to ensure you apply during standard business hours. You can also allow us to use our advance bank verification to confirm your bank details online. If you choose to send us the copies of bank statements , it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour, provided you apply during standard business time and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statements, we are able to provide a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of offer you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Certain deals have been approved in just 24 hours.
The fastest method can be make sure you apply during standard business hours. You can also let us use the advance bank verification link to instantly confirm your bank details online. If you send us documents from your account statement, it will take a little longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a particular amount, we look at a variety of elements to determine the well-being that is your business and the amount of the repayments your company will be able to support. The total amount of your loan will be contingent on the particular circumstances of your business.
When you make an application for a particular amount, we look at a range of variables to determine the well-being of the business and the extent of the repayments your business can support. The total amount of your loan will be determined by the particulars for your company.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to request business loans with us company credit, we’ll assess the risk profile of your business and provide you with a customised offer including the amount of the loan, the duration and the interest rates. It is a business loan is an upfront-priced loan and you’ll be aware of the total amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I will be charged?
The interest rates on company loans rates depend on several factors including the amount of money borrowed, the company assets the money will be used for and the sector the company is operating in, how long the company has been in operation as well as what percentage of the business has sufficient cash flow to fund the loan, and also the general well-being or creditworthiness of the business.
What are the fees?
There are no hidden costs for our business loans, and you’ll know precisely how much you be required to pay and when, right from the first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You are able to make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan earlier?
You may choose to pay back the entire amount of the loan early at any time.
If you decide to do this please talk to one of our helpful company credit specialists. They’ll provide you with the details of your repayment and an early payout figure. This is calculated as the total of the principal balance and accrued interest to the time of early payment in addition to 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To ensure you do not miss repayments and to fit in your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about how we collect data, process, exchange and protect your information, is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We utilise a sophisticated bank verification system to immediately confirm your bank account information online, allowing us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a business owner uses an asset that they own to make the funds for a loan. The asset could be a personal asset like the family home, or an company asset such as a truck or other piece of machinery.
The vast majority of lending institutions, not just the major banks, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then the asset could be transferred to the lender. In essence it’s the process of securing new funding using the worth of the asset you already own.
What do I need security to get an business loan?
For loans up to $150,000 there is no requirement for asset security in advance to gain access to the funds, however we do require the personal guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract), asset security will never be needed. For loans of over $150K generally, there is personal guarantee and security in the form of an asset charge.