FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the West Harbour Small Business Loans
Let me know more about West Harbour Small Business Loans
West Harbour unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
Apply to your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and have the funds on your account within 24 hours. Traditional company loans reference an interest rate per annum as well as other fees and charges. This company loan is an upfront priced loan which means you be aware of the total amount to be paid, including the interest, fees and charges. Then, it is broken down into either weekly or daily installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business reason, such as the management of cash flow, business improvements, advertising for purchasing inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
About larger West Harbour Business Loans
What is the Larger West Harbour Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the business needs to be operating for at least three years with an annual turnover of at least $700K. 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 business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funds for?
A large company loan is a great option for almost all business reason, such as business improvements, purchasing new equipment or inventory as well as for general working capital and much more. The loan is not available to fund personal expenses.
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 on assets, and may include the registration of this with the PPSR or registering a caveat.
A personal or director’s ensure is a commitment to repay a loan which is general in nature, rather than defining the security of a specific 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 records security interests that have been that are registered for personal property (including objects or assets). The PPSR grants preference over private property assigned according to the date a registration of a security interest.
The caveat can be described as a formal document that is filed to offer notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan that exceeds $250K it’s possible to offer an initial pre-approval to ease 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 based on an initial assessment, which involves the answer to a series of financial well-being questions. This is neither an offer nor a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you are offered could be based on different conditions.
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 at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate 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. Just complete the online application within a couple minutes, and an experienced business expert in lending will be in touch to assist you.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we can often provide a response in one hour – as long as you apply at quality company times and permit us to utilise the bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements , we are able to provide a decision within just an company day.
If you are applying for a Larger Business Loan ($100K and up) we could be able to provide you with conditional pre-approval in about six hours. After you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Certain transactions have received approval within just 24 hours.
The quickest method for you to apply is ensure you apply during normal company hours and let us use the advanced bank verification system link to instantly confirm your bank details online. If you choose to upload documents from your account statements , it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we usually offer an answer within one hour, provided you submit your request within standard business time and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll offer a decision within 1 business day.
For Larger Business Loans ($100K or more) we might be likely to offer you with conditional pre-approval in around six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Certain offers have been approved within 24 hours.
The fastest method would be to make sure you apply during standard business hours and permit us to use the advanced bank verification system link to confirm your bank details online. If you opt to upload copies of your bank statements, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we consider a variety of factors for determining the health of the company and the amount of repayments that your company can afford. The amount you receive from your loan will depend on the specifics that are unique to your company.
When you apply for a set amount, we consider a variety of aspects to assess the well-being of your company as well as the amount of repayments that your company can support. The amount you receive from your loan will depend on the specifics the business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request one of our company credit, we’ll assess the risk assessment for your company and provide an individualised offer that includes the loan amount, the terms and the interest rates. The company loan is a loan that is priced upfront therefore you will know the exact amount to be paid, including any interest rates, fees or charges.
What determines the amount I pay?
Interest rates for business loans rates vary due to factors including the amount that is borrowed, what business assets the funds will be used for in addition to the industry that the company is operating in, how long the company has been in operation as well as whether the company has enough cash flow to support the loan, and the general well-being and creditworthiness of the company.
What are the charges?
There are no hidden fees with our business loans. You’ll know exactly how much you be required to pay and when, right from the very first day. There’s no compounding interest and there are no additional charges (as as you make your payments on time).
We don’t charge an Application Fee. You are able to request a credit loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay off the loan earlier?
You can choose to repay the entire amount of your advance loan at any time.
If you are deciding to take this route, please speak to our friendly business lending specialists. They’ll provide you with repayment details and an early payout figure. The figure will be calculated as the total of the principal balance and the accrued interest up to the date of early payout in addition to 1.5% of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
To make sure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about the ways we gather, use, exchange and ensure the security of your information is of paramount importance and a vital aspect 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 protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We make use of an advanced bank verification system link to instantly confirm your bank account information online, allowing us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner makes use of assets they own to get the loan. The asset may be a personal asset like the family home or a business asset like a truck or piece of equipment.
The majority of banks, not just the big banks, tend to guarantee loans against an asset. If you’re struggling to pay back the loan then your assets could be taken over by the lender. In essence, it’s the process of securing new funding using the worth of the asset you already have.
What do I need security for an business loan?
For loans up to $150K no asset security is required before you are able to access the money, however we require a personal guarantee. require the personal guarantee. If you adhere to the loan terms (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 typically, you will need a personal ensure and security in the form of a charge over assets.