FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Whenuapai Small Business Loans
Let me know about the Whenuapai Small Business Loans
Whenuapai unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from a traditional business loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and the funds could be in your account within 24 hours. Traditional business loans are based on an annual interest rate together with additional fees and charges. This company loan is a loan that is priced upfront which means you be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then broken down into either a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company use, including managing cash flows, business renovations, marketing to purchase inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About Larger Whenuapai Business Loans
What is the Larger Whenuapai Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the business 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) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan is a great option for almost any business reason, such as company remodeling, buying new equipment or inventory for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This is in the form of a charge against assets, and could include registering this on the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is generally based rather than specifying security over a particular asset. The person signing the guarantee is personally liable in the event that the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR permits the priority of personal property granted in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal form of document to offer the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans of $250,000 or more we can offer an initial pre-approval to simplify the process. It is possible to get this done without a credit verification and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial well-being checks. This is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer that you may receive may be based on different conditions.
Application process
Do I qualify for funds?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for a 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 fast and simple. Complete the online form in just a few minutes, and an experienced company loan specialist will be in touch to guide you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll also require:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually offer a response in one hour if you make your application at standard business time and let us use the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements , we are able to offer an answer in just an business day.
For Larger Business Loans ($100K up to $500,000) we might be likely to provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain deals have been approved in 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. Also, let us use the advanced bank verification system link to instantly verify your bank account information online. If you choose to send us the copies of bank statements , it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour – provided you apply at normal business hours and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statement, we’ll offer a decision in as little as an business day.
For Larger Business Loans ($100K to $500K) we could be able to provide you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be faster depending upon the circumstances for each application. Certain agreements have been approved within less than 24 hours.
The fastest method would be to ensure you apply during standard business hours and let us use the advance bank verification link to instantly verify your bank account information online. If you upload copies of your bank statement, it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we will consider a number of factors in order to assess what is the health of your business and the amount of repayments your business can support. The amount you receive from the loan will be determined by the specific circumstances for your company.
If you apply for a set amount, we consider a variety of aspects to determine the health for your company and the extent of repayments your company can support. The total amount of your loan will be determined by the specific circumstances the company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to request business loans with us business loan, we’ll assess the risk profile that you have for your company and offer you with a tailored offer, including the amount of loan, the term and the interest rates. It is 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 determines the amount I am charged?
Interest rates for business loans rates differ based on various factors such as the amount that is borrowed, what business assets the funds are used to purchase, the industry the company is in, how long the company has been in operation for, how long the business has enough cash flow to support the loan, as well as the overall health or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our company loans. You’ll know exactly how much you’ll be required to pay, and when, from the day you sign up. There’s no compounding and the loan comes with no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You can get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You may choose to pay back the entire amount of the advance loan at any time.
If you decide to pursue this option, please contact our helpful company loans professionals. They’ll offer you with the details of your repayment and an early payment figure. The figure will be calculated as the sum of the principal balance and any accrued interest at the time of early payout and 1.5 percent of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To make sure you do not miss payments and to work your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Security of your data, and being transparent about how we collect information, use it, and exchange it, as well as ensure the security of your information is of huge importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We make use of an advanced banking verification system to immediately confirm your bank account information online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner makes use of an asset that they own to make the loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a business asset such as a vehicle or other piece of machinery.
The vast majority of the lenders even the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset might be taken over by the lender. In essence, it is a way of securing new funding making use of the value of what you already have.
What do I require security to secure an company loan?
For loans of up to $150,000, the requirement for asset security is not required before you are able to access the money however, we do require an individual guarantee. If you adhere to the terms of your loan (as detailed in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150,000 generally, there is personal ensure and security is provided in the form of charges on assets.