FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Waiatarua Small Business Loans
Tell me what you think of the Waiatarua Small Business Loans
Waiatarua unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
The application for the Small Business Loan in under 10 minutes on the internet or over the phone, receive an instant response and funds may be available in just 24 hours. Traditional company loans reference an interest rate per annum as well as other fees and charges. The company loan is a pre-paid loan therefore you’ll know in advance the total amount payable including the interest, fees and charges. Then, it is broken down into either weekly or daily repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company reason, such as the management of cash flow, business improvements, advertising to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Waiatarua Business Loans
What is the Larger Waiatarua Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to be trading for at least 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used for nearly every company purpose including business renovations, to purchase new equipment or inventory for general working capital and 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 in the form of a charge over assets, and may include registering this with the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is general in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be assigned depending on the date that a security interest was registered.
An affidavit is an official document that is filed to offer an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more, we may offer a preliminary pre-approval to help simplify the process. We might be able to do this without credit checks and within 6 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 questions. This is neither an offer nor a guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you are offered could be based on different terms.
Do I have the right to receive funds?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a few minutes and an experienced business lending specialist will contact you to help you.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s License) along with a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank records, IRD statements, last 2 years finalised financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer within an hour – as long as you make your application at quality business 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’ll be able to offer the decision in as little as an business day.
For Larger Business Loans ($100K or more) we may be capable of provide the conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Some deals have been approved within 24 hours.
The quickest method would be to make sure you apply during normal business hours and allow us to use the modern bank verification link to instantly confirm your bank details online. If you choose to send us documents from your account statement, it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we typically provide an answer within an hour, provided you make your application at normal business timings and allow us to use the bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statement, we’ll provide the decision in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be capable of offer the conditional pre-approval within about six hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Certain deals have been approved within the space of 24 hours.
The quickest method can be make sure you apply during normal business hours. Also, permit us to use the advance bank verification link to instantly confirm your bank details online. If you decide to send us the copies of bank statements, it can take a bit longer.
What’s the minimum amount I can 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 aspects to determine your health of the company and the level of payments your company can support. The amount you receive from your loan will depend on the particular circumstances the company.
If you apply for a specific amount we will consider a number of variables to assess the well-being that is your business and the amount of the repayments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances the company.
Fees & repayments
How much should you charge for an business loan?
When you apply for our company loan, we’ll assess the risk profile that you have for your company and provide you with a customised offer, including the loan amount, the terms and interest rates. A company loan is an upfront priced loan and you’ll be aware in advance of the total amount due, which includes any charges or interest.
What determines the amount I am charged?
Business loan interest rates depend on several variables like the amount to be borrowed, the company assets the money will be used for as well as the field the business operates in, how long the company has been running and whether the business has sufficient cash flow to pay for the loan, and overall well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our company loans. You’ll know precisely what it is that you need to pay and when, starting from the day you sign up. There’s no compounding 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 with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You can choose to repay all of your loan early at any time.
If you decide to do this please call our helpful company credit specialists. They’ll offer you with the details of your repayment and an early payout figure. It will be calculated using the total of the principal amount remaining plus any accrued interest as of the time of early payment plus 1.5% of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing due dates and also to be in line with your cash flow routine, we provide payments that are either daily or weekly. They will be automatically deducted from your business account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about the ways we gather, use, exchange and safeguard your data, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We employ an exceptionally sophisticated bank verification system link to immediately confirm your bank account information online to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the company owner utilises the assets they have to obtain the funds for a loan. The asset can be an individual property, such as the family home or an business asset such as a truck or piece of equipment.
The majority of banks, not just the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan, the asset could be offered for sale by the lender. In essence, it is the process of securing new financing by using the value of what you already own.
Do I need security for an business loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. As long as you follow the loan terms (as stated in your loan contract document) Asset security will never be needed. If you take out loans in excess of $150,000 generally there is an individual guarantee and security in the form charges on assets.