FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Wadestown Small Business Loans
Tell me more about Wadestown Small Business Loans
Wadestown unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
You can apply for the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and the funds could be in your account within 24 hours. Traditional business loans have an annual rate of interest along with other charges and fees. The company loan is a pre-paid loan so you will know ahead of time the total amount due, which includes any fees, charges or charges. This is then broken down into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business purpose including cash flow management, company remodeling, marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
About the Larger Wadestown Business Loans
What is the Larger Wadestown Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been trading for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A larger business loan can be used for nearly all company purpose including business renovations, purchase of inventory or new equipment as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It’s in the form of a charge on assets, which could also include registering this with the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is generally based rather than stipulating the security of a specific asset. The person who signs the guarantee is personally responsible if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR permits the priority of personal property assigned according to the date a registration of a security interest.
A caveat is a legal document filed to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250,000 we may be able to provide a preliminary pre-approval to help simplify the process. We might be able to do this without a credit check 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 well-being checks. This is not an offer of credit or guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer that 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 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in just a few minutes, and a dedicated business expert in lending will be in touch to guide you.
To apply for up $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 need:
$100K – $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent twelve months of bank records, IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually provide an answer within one hour – as long as you submit your request within quality company time and you allow us to utilise the bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements we can offer an answer in just one business day.
If you are applying for a Larger Business Loan ($100K and up) we may be likely to provide you with pre-approval conditional to your application in around six hours. Once you’ve 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 specifics of each application. Some agreements have been approved within just 24 hours.
The quickest method is to make sure you apply during standard company hours, and permit us to use the modern bank verification to instantly check your bank’s information online. If you choose to upload the copies of bank statement, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour if you submit your request in standard business times and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statements, we are able to offer the decision within the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of offer the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours and permit us to use the modern bank verification link to instantly verify your bank information online. If you choose to upload the copies of bank statement, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of elements for determining how much we can lend you well-being of your company and the amount of payments your business can support. The total amount of the loan will be determined by the particular circumstances the business.
When you submit an application for a certain amount, we will consider a number of elements to determine how much we can lend you such as health that is your company as well as the amount of the repayments your company will be able to support. The total amount of the loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to request our business loans, we will assess the risk assessment of your company and provide an individualised proposal that includes loan amount, term and interest rates. This business loan is an upfront cost loan so you will be aware in advance of the total amount due, which includes any charges or interest.
What is the basis for the rate I am charged?
The interest rates on company loans rates depend on a variety of factors including the amount of money borrowed, the company assets the funds will be used for as well as the field the company operates in, the long the business is in operation, in the event that the business has enough cash flow to pay for the loan, and also the overall well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden costs for our company loans, and you’ll be aware of the amount you need to pay and at what time, from the day you sign up. There’s no compounding interest, and there are no additional charges (as as you make your payments in time).
We do not charge an application fee. You can get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan early?
You can choose to repay the entire amount of your advance loan at any time.
If you choose to pursue this option, please call our helpful business loans professionals. The professionals will offer you with the details of your repayment as well as an early payout amount. This will be calculated as the sum of the principal remaining plus any accrued interest as of the date of early payout in addition to 1.5% of the principal balance as well as any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to the security of our clients as well as their privacy. We make use of an advanced bank verification system link to immediately verify the bank account details online, allowing us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner borrows from an asset that they own to secure the loan. The asset can be either an individual property, such as the family home, or an business asset such as a vehicle or piece or equipment.
The majority of the lenders including the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, your asset may be taken over by the lender. In essence it is an opportunity to secure new financing making use of the value of what you already own.
Do I require security to get a company loan?
Up to $150,000 in loans there is no requirement for asset security before you can access the money but we do need the personal guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract), asset security is not needed. For loans over $150K typically, you will need a personal guarantee and security that is in the form charges on assets.