FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the New Windsor Small Business Loans
Tell me what you think of the New Windsor Small Business Loans
New Windsor unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from a traditional company loan?
Apply to get this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and have the funds in your account within 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. The business loan is a loan that is priced upfront so you will know ahead of time the total amount payable including any interest, fees or charges. This is then divided into a daily or weekly installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company purpose including the management of cash flow, company remodels and marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger New Windsor Business Loans
What is the Larger New Windsor Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the business needs to be operating for at least three years and generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used for nearly any business need, including company remodeling, buying new equipment or inventory, as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This can be done by way of charge over assets and can include registration on 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 stating security over a particular asset. The person who is signing the ensure is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR grants priority over personal property to be granted in accordance with the date on which a security interest has been registered.
Caveats are legal document filed to offer an official notice of a claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help ease the process. We may be able to apply for this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health checks. It is in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you may receive may be on different terms.
Can I be eligible for funding?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a couple minutes, and an experienced business expert in lending will contact you to assist you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent and 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour, provided you submit your request at standard business time and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements we can provide the decision in as little as an business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be able to provide you with a conditional pre-approval in about six hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some agreements have been approved within the space of 24 hours.
The quickest method would be to make sure you apply during standard company hours. You can also permit us to use the advance bank verification to check your bank’s information online. If you upload documents from your account accounts, it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we usually provide an answer in just one hour – provided you submit your request at standard business timings and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statement, we’ll provide a decision in as little as one business day.
For Larger Business Loans ($100K and up) we may be capable of offer you with a conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The fastest method is to ensure you apply during standard business hours. You can also allow us to use our sophisticated bank verification link to instantly verify your bank information online. If you choose to send us duplicates of your banking statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a certain amount we consider a variety of aspects that determine how much we can lend you well-being for your company as well as the amount of payments your business can afford. The total amount of your loan will depend on the specific circumstances that are unique to your company.
If you apply for a set amount, we will consider a number of aspects to assess how much we can lend you such as health of the business and the extent of the repayments your business can afford. The total amount of your loan will be determined by the particulars the company.
Fees & repayments
How do you charge for a company loan?
If you decide to apply for one of our business credit, we’ll assess the risk assessment for your business and provide you with a tailored offer that includes the amount of loan, the term and the interest rates. The company loan is an upfront cost loan which means you know in advance the total amount to be paid, including any charges or interest.
What is the basis for the rate I will be charged?
Business loan interest rates vary due to variables like the amount to be borrowed, what company assets the money are used to purchase and the sector the business is in, how long the business has been in operation as well as in the event that the business has sufficient cash flow to fund the loan, and the overall health and creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our business loans. You’ll know exactly how much you’ll need to pay, and when, starting from day one. There’s not any 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 with with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan early?
You can choose to repay all of your advance loan at any time.
If you choose to take this route, please call our helpful business loan professionals. The professionals will offer you with repayment details along with an early payout estimate. This will be calculated as the sum of the principal remaining and the accrued interest up to the time of early payment in addition to 1.5 percent of the principal balance and any fees that remain unpaid.
How do repayments work?
To make sure you do not miss payment dates and to align your cash flow schedule, we offer repayments that are either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about how we collect data, process, exchange and protect your information, is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We employ a highly sophisticated bank verification system that allows you to instantly verify your bank account details online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of assets they own to make the loan. The asset may be an individual property, such as the family home or it could be a business property like a truck as well as a piece of machine.
The vast majority of lenders, not just the big banks, tend to secure loans against an asset. If you are having difficulty paying back the loan then your assets could be sold by the lender. In essence, it is means of securing additional financing taking advantage of the value of what you already have.
Are I need security for an business loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds however, we do require a personal guarantee. If you adhere to your loan commitments (as specified in your loan contract), asset security will never be required. For loans of over $150,000 generally, there is the option of a personal ensure and security in the form an asset charge.