FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Waitangirua Small Business Loans
Tell me how you can avail the Waitangirua Small Business Loans
Waitangirua unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional company loan?
The application to get this Small Business Loan in under 10 minutes online or over the phone, receive a same day response and the funds could be in your account in 24 hours. Traditional company loans reference an annual rate of interest together with additional fees and charges. This business loan is a loan that is priced upfront which means you know in advance the amount you will have to pay, including any fees, interest or charges. This is then broken down into either a daily or weekly installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company purpose including managing cash flows, company remodels and marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Waitangirua Business Loans
What is the Larger Waitangirua Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to be in operation for at least 3 years and generate an annual revenue of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be utilised?
A larger business loan can be used for almost every company need, including business improvements, purchasing inventory or new equipment for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This can be done by taking a charge over assets and can include the registration of this on the PPSR or registering a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is general in nature rather than specifying the security for a particular asset. The person who is signing the ensure is personally liable in the event that the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be assigned according to the date the security interest that is registered.
Caveats are legal document lodged to provide the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250K, we may offer an initial pre-approval in order to ease the process. We could be able to apply for this without a credit check and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial health checks. It is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could be based on different terms.
Application process
Do I qualify for funds?
You may apply for a business 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)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just complete the online application within a couple minutes, and a dedicated business expert in lending will contact you to help you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License), 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 consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often provide an answer within an hour – as long as you make your application during standard business time and let us use the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statement, we’ll provide an answer within just 1 business day.
For Larger Business Loans ($100K or more) we could be capable of offer you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain offers have been approved in the space of 24 hours.
The quickest method for you to apply is ensure you apply during normal company hours. Also, allow us to use the advanced bank verification system to verify your bank account information online. If you send us duplicates of your banking statements , it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour – provided you apply in normal business times and allow us to use the bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements, we will be able to provide a decision in just one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be able to provide you with pre-approval conditional to your application in about six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain deals have been approved within the space of 24 hours.
The quickest method can be ensure you apply during standard business hours and allow us to use the modern bank verification link to check your bank’s information online. If you opt to send us the copies of bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a specific amount we look at a variety of elements in order to assess your health that is your company and the amount of repayments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances the business.
When you apply for a set amount, we look at a range of elements to assess your health that is your company and the level of payments your company will be able to support. The amount you receive from your loan will be determined by the specifics the business.
Fees & repayments
What is the cost for a business loan?
When you apply for the company financing, we’ll assess the risk assessment that you have for your business and provide you with a tailored proposal that includes the loan amount, the terms and interest rates. It is a company loan is an upfront priced loan so you will know in advance the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Interest rates for company loans rates depend on a variety of variables like the amount to be borrowed, the company assets the money will be used for as well as the field the company operates in, the long the business has been operating for, how long the business has sufficient cash flow to pay for the loan, as well as the general health and creditworthiness of the business.
What are the fees?
There aren’t any hidden costs with our business loans, and you’ll know precisely how much it is that you need to pay and when, right from the first day. There’s no compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can get a cash loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I repay the loan in advance?
You can repay the total amount of your loan early at any time.
If you choose to do this please contact our helpful company credit specialists. We will provide you with repayment details and an early payout figure. This will be calculated as the sum of the principal amount remaining and accrued interest to the time of early payment and 1.5% of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear how we collect information, use it, and exchange it, as well as secure your information, is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive 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 utilise a sophisticated banking verification system to immediately confirm your bank account information online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a business owner uses an asset they own to obtain a loan. The asset can be a personal asset like the family home or it could be a business asset like a truck or piece or equipment.
The majority of lending institutions, even the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan, the asset might be transferred to the lender. In essence, it is an opportunity to secure new financing by using the worth of the asset you already own.
What do I require security to secure an company loan?
Up to $150K in loans no asset security is required before you are able to access the money However, we do require an individual guarantee. So long as you comply with the loan terms (as stipulated in your loan contract document), asset security is not required. For loans that exceed $150K, generally, you are able to get personal guarantee and security that is in the form the charge of assets.