FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Waiwhetu Small Business Loans
Let me know more about Waiwhetu Small Business Loans
Waiwhetu unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional business loan?
The application to the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and funds may be in your account in 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. The company loan is a loan that is priced upfront which means you be aware in advance of the total amount due, which includes any interest, fees or charges. Then, it is broken down into either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business use, including control of cash flow company remodeling, marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal purposes.
About Larger Waiwhetu Business Loans
What is the Larger Waiwhetu Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit of this size, your business needs to have been trading for at least 3 years and have an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funds be utilised?
A large business loan can be used for nearly every business reason, such as business remodeling, buying new equipment or inventory or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. It’s as a result of an charge against assets, and could include the registration of this with the PPSR or registering as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally in nature rather than stating security over a particular asset. The person who signs the guarantee is personally liable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be granted according to the date the security interest has been registered.
An affidavit is an official document filed to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help make the process. We might be able to get this done without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being checks. It’s not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer you might receive could be on different terms.
Application process
Do I have the right to receive funds?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (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 application process is fast and easy. Complete the online form in just a few minutes, and an experienced company expert in lending will call you to guide you through the process.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer within one hour, provided you submit your request within standard company time and you allow us to utilise the bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements we can offer the decision in just an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be in a position to provide you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be quicker based upon the circumstances for each application. Some offers have been approved within the space of 24 hours.
The most effective method can be ensure you apply during normal company hours and allow us to use the advance bank verification link to verify your bank account information online. If you decide to upload the copies of bank accounts, it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour – as long as you submit your request within normal business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your bank statements, we are able to offer an answer within the span of one business day.
For the Larger Business Loans ($100K or more) we might be capable of provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval in just 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours and allow us to use our sophisticated bank verification link to instantly verify your bank account information online. If you opt to upload documents from your account statements it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a certain amount we will consider a number of elements for determining how much we can lend you health that is your business and the amount of repayments that your company can afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your company.
When you make an application for a particular amount, we look at a range of variables to determine your well-being of your company and the level of payments your company will be able to support. The total amount of your loan will be determined by the specific circumstances the business.
Fees & repayments
How do you charge for a business loan?
If you decide to apply for our business financing, we’ll assess the risk assessment of your company and provide you with a customised offer that includes loan amount, term and the interest rates. This business loan is an upfront priced loan which means you be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I am charged?
The interest rates on company loans rates depend on several variables like the amount to be of money borrowed, the business assets the funds are used to purchase and the sector the business operates in, the long the business is in operation and how long the business has enough cash flow to pay for the loan, and the general health as well as creditworthiness business.
What are the fees?
There are no hidden fees for our business loans. You’ll know precisely what you’ll need to pay, and when, from the day you sign up. There’s no compounding interest and no extra fees (as as you make your payments on time).
We don’t charge an application fee. You can request a credit loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee is the cost associated in 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 amount of loan.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you are deciding to pursue this option, please contact our helpful business loan experts. We will provide you with repayment details as well as an early payout amount. This is calculated as the total of the remaining principal amount and accrued interest to the date of early payout, plus 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 due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about the ways we gather the information we collect, use, share and protect your information, is of paramount importance and a vital 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 personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We use an advanced bank verification system that allows you to immediately verify the bank account details online to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner utilises assets they own to secure the funds for a loan. The asset could be an individual asset, such as the family home, or an company asset such as a truck or piece or equipment.
The vast majority of lending institutions, even the largest banks, are inclined to secure loans against assets. If you are having difficulty paying back the loan, your assets could be offered for sale by the lender. In essence, it is a way of securing new funding taking advantage of the value of what you already own.
Are I require security for a business loan?
For loans of up to $150,000, no asset security is required before you are able to access the money However, we require a personal guarantee. require an individual guarantee. If you adhere to the loan terms (as specified in the loan contract), asset security will never be needed. For loans over $150,000 generally, you are able to get an individual ensure and security in the form of the charge of assets.