FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wellington Small Business Loans
Let me know about the Wellington Small Business Loans
Wellington unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from the traditional company loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and funds may be available in just 24 hours. Traditional business loans are based on an annual rate of interest plus other fees and charges. We offer a company loan is a pre-paid loan which means you know in advance the total amount to be paid, including any fees, charges or charges. This is then divided into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company reason, such as managing cash flows, business improvements, advertising, to purchase inventory or new equipment, to fund general working capital and so 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 amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been trading for at least 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funds be used for?
A Business Loan of a larger size can be used for nearly every company purpose including company renovations, to purchase equipment or inventory or as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It’s by taking a charge on assets, and may include the registration of this with the PPSR or filing as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is generally in nature rather than defining the security for a particular asset. The person who is signing the guarantee is personally responsible if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including the assets or goods). The PPSR gives the priority of personal property assigned according to the date a security interest has been registered.
An affidavit is an official document filed to provide an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval that will help simplify the process. We could be able to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial well-being questions. This is in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could be based on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a couple minutes, and a dedicated company credit specialist will call you to guide you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K or more) We can usually offer a response in one hour if you submit your request in standard company times and allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements , we’ll be able to provide a decision in just one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be able to offer you with a conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some deals have been approved in less than 24 hours.
The most efficient method can be ensure you apply during standard business hours. You can also permit us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to send us duplicates of your banking statements , it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we can often provide an answer within one hour – provided you make your application in standard business times and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statements, we’ll be able to provide the decision in just an business day.
If you are applying for Larger Business Loans ($100K and up) we may be in a position to provide you with conditional pre-approval within 6 hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain transactions have received approval in 24 hours.
The fastest method is to make sure you apply during standard business hours. Also, allow us to use our advance bank verification to check your bank’s information online. If you choose to send us copies of your bank statements, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we look at a variety of variables that determine your health that is your company and the level of payments your company can support. The amount you receive from the loan will be determined by the specifics of your business.
When you make an application for a particular amount, we look at a range of elements to determine the health of the business and the level of payments your company will be able to support. The total amount of the loan will be determined by the particulars of your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you request our business loans, we will assess the risk assessment that you have for your company and offer an individualised offer that includes the amount of the loan, the duration and the interest rates. The business loan is an upfront cost loan and you’ll know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I am charged?
The interest rates on business loans rates vary due to variables like the amount to be borrowed, the business assets the funds are used to purchase in addition to the industry that the company is operating in, how long the company is in operation and whether the company has sufficient cash flow to pay for the loan, and general health or financial standing of the business.
What are the charges?
There are no hidden fees for our business loans, and you’ll be aware of the amount you need to pay, and when, from day one. There’s no compounding and no extra fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan earlier?
You may choose to pay back the entire amount of your loan early at any time.
If you decide to pursue this option, please talk to one of our helpful company loans specialists. They will offer you with details for repayment and an early payment figure. This will be calculated as the sum of the remaining principal amount and any accrued interest at the time of early payment and 1.5 percent of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear how we collect the information we collect, use, share and protect your information, is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and security. We make use of an advanced bank verification system link to instantly verify the bank account details online, allowing us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner uses an asset they own to get a loan. The asset could be an individual asset, such as the family home or a business asset such as a truck or piece or equipment.
The majority of lenders, including the big banks, tend to guarantee loans against assets. If you’re having trouble paying back the loan, then the asset could be sold by the lender. In essence, it’s an opportunity to secure new funding making use of the value of what you already own.
Should I require security to secure a business loan?
For loans of up to $150K, there is no requirement for asset security upfront to access the money, however we require a personal guarantee. need a personal guarantee. So long as you comply with your loan commitments (as stated in your loan contract document) Asset security is not needed. If you take out loans in excess of $150K generally, there is an individual guarantee and security that is in the form a charge over assets.