FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Waiwhetu Small Business Loans
Let me know what you think of the Waiwhetu Small Business Loans
Waiwhetu unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from a traditional business loan?
It is possible to apply to get your Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and funds may be available in just 24 hours. Traditional business loans are based on an annual rate of interest plus other fees and charges. The company loan is an upfront priced loan therefore you’ll be aware in advance of the total amount payable including the interest, fees and charges. This is then divided into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business need, such as cash flow management, business remodels and marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Waiwhetu Business Loans
What is the Larger Waiwhetu Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to have been trading for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funds be used for?
A Business Loan of a larger size can be used for almost every business reason, such as company remodeling, buying new equipment or inventory or as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. This is by taking a charge on assets and can be registered in the PPSR or registering as a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is general in nature rather than stating the security for a particular asset. The person who is signing the guarantee is personally liable in the event that the business borrower is unable to re-pay 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 which are registered with respect to personal property (including items or assets). The PPSR grants preference over private property granted according to the date a registration of a security interest.
A caveat is a legal form of document to offer the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger business loans that is greater than $250K we may be able to provide an initial pre-approval to ease the process. We might be able to get this done without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial health checks. It’s neither an offer nor a guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you might receive could have 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 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in few minutes and an experienced business credit specialist will call you to guide you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details for application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer within one hour – as long as you submit your request during quality business hours and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statement, we’ll provide the decision in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be capable of offer the conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some agreements have been approved in the space of 24 hours.
The quickest method is to make sure you apply during normal business hours. Also, let us use the modern bank verification to check your bank’s information online. If you send us documents from your account accounts, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we typically provide an answer within an hour if you apply in normal business time and permit us to use the bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements we can provide a decision in as little as the span of one business day.
For Larger Business Loans ($100K and up) we might be likely to offer you with conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved in 24 hours.
The fastest method is to make sure you apply during standard business hours, and allow us to use the advanced bank verification system link to instantly verify your bank account information online. If you choose to upload duplicates of your banking accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount we consider a variety of factors in order to assess the well-being of the company and the amount of payments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances of your business.
When you apply for a particular amount, we take into consideration a variety of factors to determine how much we can lend you such as health that is your business as well as the amount of repayments your company is able to afford. The amount you receive from your loan will be contingent on the specifics for your company.
Fees & repayments
How much do you charge for an company loan?
If you decide to request one of our company loan, we’ll assess the risk profile that you have for your company and provide you with a tailored offer that includes the loan amount, the terms and interest rates. A business loan is a loan that is priced upfront therefore you will be aware in advance of the total amount to be paid, including any charges, interest rates or fees.
What determines the rate that I will be charged?
The interest rates on business loans rates vary due to factors like the amount of money of money borrowed, the company assets the money are used to purchase in addition to the industry that the company is in, how long the business is in operation, how long the business has enough cash flow to cover the loan, and general health or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our company loans. You’ll know precisely what it is that you be required to pay and when, from the first day. There’s not any compounding interest and no extra fees (as long as you make your payments punctually).
We don’t charge an Application Fee. You are able to apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You can choose to repay the total amount of your loan in full at any time.
If you do decide to take this route, please talk to one of our helpful business loan experts. The specialists will offer you with details on repayment and an early payment figure. This will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payment plus 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To make sure you do not miss due dates and also to be in line your cash flow schedule, we offer repayments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and ensure the security of your information is crucial and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We use an advanced bank verification system link to instantly verify the bank account details online to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an company owner uses an asset they own to secure the loan. The asset can be an individual property, such as the family home, or it could be a company asset like a truck or piece or equipment.
The vast majority of banks, including the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan then your asset may be sold by the lender. In essence, it is a way of securing new financing by using the value of what you already own.
Should I need security to get an business loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money but we require a personal guarantee. need the personal guarantee. As long as you follow the loan terms (as detailed in your loan contract) Asset security is not needed. For loans over $150,000 generally, you can get a personal guarantee and security is provided in the form of charges on assets.