FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Waterview Small Business Loans
Let me know more about Waterview Small Business Loans
Waterview unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an ordinary business loan?
Apply to the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and funds may be in your account in 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. The company loan is a pre-paid loan which means you know ahead of time the total amount payable including any fees, charges or charges. Then, it is broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business purpose including cash flow management, business remodels and 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 Waterview Business Loans
What is the Larger Waterview Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been in operation for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funds be utilised?
A large company loan can be used to fund almost all company need, including company remodeling, buying 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 obtain funding above $150,000. It is usually by way of charge on assets, and could include registering this in the PPSR or registering a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature rather than specifying the security of a specific asset. The person who signs the guarantee is personally liable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR permits the priority of personal property granted according to the date the security interest that is registered.
Caveats are legal document filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K it is possible to offer an initial pre-approval to make the process. It is possible to make this decision without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial health checks. It is not an offer of credit or guarantee of funds. A conditional approval is subject a full credit assessment and any offer you might receive could be on different conditions.
The application process
Can I be eligible for funding?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (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 application process is fast and simple. Complete the online form in few minutes and a dedicated business loan specialist will contact you to guide you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent twelve months of bank statements, IRD statements Last 2 years’ finalised financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we can often provide an answer within an hour, provided you make your application within quality business hours and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statement, we’ll provide the decision within just an business day.
For Larger Business Loans ($100K or more) we might be capable of offer you with a conditional pre-approval within six hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved in less than 24 hours.
The most efficient method can be ensure you apply during standard company hours. Also, let us use the advance bank verification link to instantly confirm your bank details online. If you choose to send us copies of your bank statements it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you apply during normal business times and you allow us to use the bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements, we’ll be able to provide an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be in a position to provide you with conditional pre-approval within six 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 circumstances of each application. Some offers have been approved within 24 hours.
The fastest way is to ensure you apply during normal business hours and permit us to use the sophisticated bank verification to check your bank’s information online. If you decide to upload copies of your bank statements 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 elements in order to assess your well-being of the company and the level of repayments that your company can afford. The amount you receive from the loan will be determined by the specific circumstances of your company.
When you make an application for a specific amount we take into consideration a variety of factors to determine how much we can lend you such as health that is your company and the amount of payments your business is able to afford. The total amount of your loan will be contingent on the specifics of your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to apply for business loans with us company loan, we will assess the risk profile of your company and provide you with a tailored offer that includes the loan amount, the terms and interest rates. The business loan is an upfront priced loan which means you be aware of the total amount you will have to pay, including charges or interest.
What is the basis for the rate I pay?
Interest rates for business loans rates vary due to factors like the amount of money borrowed, what business assets the funds will be used for as well as the field the business operates in, the long the company has been operating and whether the business has sufficient cash flow to pay for the loan, and overall well-being or financial standing of the business.
What are the fees?
There aren’t any hidden charges for our company loans, and you’ll know precisely how much you’ll be required to pay and when, from the first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments punctually).
We do not charge an application fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of your advance loan at any time.
If you do decide to pursue this option, please contact our helpful business lending professionals. They will provide you with details for repayment as well as an early payout amount. It will be calculated using the sum of the principal remaining and the accrued interest up to the date of early payout in addition to 1.5% of the principal remaining as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work with your cash flow general, we provide payments that are either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and protect your information, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We use an advanced bank verification system to instantly verify your bank account details online, allowing us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an business owner uses assets they own to get the loan. The asset may be an individual property, such as the family home, or an business property like a truck or piece or equipment.
The majority of the lenders even the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan, the asset could be transferred to the lender. In essence it is means of securing new financing taking advantage of the value of what you already own.
Should I require security for a company loan?
For loans of up to $150K, there is no requirement for asset security in advance to gain access to the funds However, we do require an individual guarantee. In the event that you fulfill the terms of your loan (as specified in the loan contract), asset security will never be required. If you take out loans in excess of $150K generally, you can get personal ensure and security that is in the form charges on assets.