FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Wairau Valley Small Business Loans
Tell me more about Wairau Valley Small Business Loans
Wairau Valley unsecured loans provides the range of $5,000 to $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 the traditional business loan?
The application to get the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and have the funds on your account within 24 hours. Traditional business loans are based on an annual rate of interest together with additional fees and charges. The business loan is a pre-paid loan therefore you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is divided into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business reason, such as the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
About Larger Wairau Valley Business Loans
What is the Larger Wairau Valley Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the business needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. Your company must belong to 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 demonstrate at minimum 12 months of continuous trading.
What can the funding be used for?
A large company loan can be used for almost every company need, including business improvements, purchasing inventory or new equipment or as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. It is usually in the form of a charge over assets, and could include the registration of this in the PPSR or making a caveat.
A personal or director’s ensure is a commitment to repay a loan which is general in nature rather than stipulating the security for a particular asset. The person who is signing the guarantee is personally liable if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR gives the priority of personal property granted in accordance with the date on which a security interest has been registered.
Caveats are legal document lodged to offer the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting larger business loans of more than $250,000 it’s possible to offer an initial pre-approval to make the process. We may be able to do this without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial health checks. This is not an offer or guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you are offered could be based on different terms.
Are I eligible for funding?
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 company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the 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. Just complete the online application in just a few minutes, and an experienced company lending specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s License) along with a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour – as long as you make your application at standard business times and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to send us copies of your bank statement, we’ll offer an answer within just 1 business day.
For the Larger Business Loan ($100K or more) we might be able to offer you with a conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved in less than 24 hours.
The quickest way to apply would be to ensure you apply during standard company hours, and permit 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 statements , it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) we typically offer an answer within an hour – provided you make your application in standard business times and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statements, we are able to offer an answer within one business day.
For the Larger Business Loans ($100K to $500K) we may be in a position to provide you with conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Certain offers have been approved in less than 24 hours.
The quickest method can be make sure you apply during standard business hours, and permit us to use the advanced bank verification system to verify your bank account information online. If you upload duplicates of your banking statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a specific amount we take into consideration a range of variables in order to assess the well-being that is your company and the level of payments your company can afford. The amount you receive from your loan will depend on the specific circumstances for your company.
If you apply for a set amount, we consider a variety of factors to assess the health for your business and the amount of the repayments your business can support. The total amount of your loan will be determined by the particular circumstances of your business.
Fees & repayments
How do you charge for an company loan?
When you make an application for business loans with us business financing, we will assess the risk profile the business and provide you with a tailored proposal that includes the amount of loan, the term and interest rates. This business loan is a loan that is priced upfront which means you be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I’m charged?
The interest rates on company loans rates depend on several factors including the amount that is borrowed, what company assets the money will be used for as well as the field the business operates in, the long the business has been in operation as well as whether the business has enough cash flow to cover the loan, and overall well-being as well as creditworthiness business.
What are the fees?
There are no hidden fees with our company loans. You’ll know precisely how much you be required to pay and at what time, from day one. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Do I have the option of paying off the loan early?
You can decide to repay the total amount of your loan in full at any time.
If you are deciding to pursue this option, please talk to one of our helpful company loan professionals. They’ll offer you with repayment details as well as an early payout amount. This will be calculated as the sum of the principal amount remaining and accrued interest to the time of the early payout plus 1.5 percent of the principal balance and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being transparent about the ways we gather information, use it, and exchange it, as well as safeguard your data, is crucial and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system to immediately confirm your bank account information online. This allows us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner uses the assets they have to get a loan. The asset can be either an individual asset, such as the family home or an company asset such as a truck or piece or equipment.
The majority of banks, not just the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, your assets could be offered for sale by the lender. In essence it is the process of securing new financing by making use of the value of what you already own.
Should I need security to secure a business loan?
For loans up to $150K there is no requirement for asset security prior to the loan’s access but we do require a personal guarantee. As long as you follow the terms of your loan (as detailed in your loan contract document) the security of assets is not needed. For loans over $150,000 typically, you will need personal guarantee and security in the form charges on assets.