FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Waterview Small Business Loans
Let me know more about Waterview Small Business Loans
Waterview unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from the traditional business loan?
The application to your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and funds may be in your account in 24 hours. Traditional business loans reference an annual rate of interest as well as other fees and charges. The business loan is a cash-based loan so you will know in advance the total amount payable including any fees, charges or charges. Then, it is divided into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company need, such as control of cash flow business renovations, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Waterview Business Loans
What is the Larger Waterview Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your company needs to be trading for at least 3 years and have an annual turnover of $700,000. Your business 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 to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A large business loan can be used for almost all company purpose including company improvements, purchasing equipment or inventory for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It is usually by taking a charge over assets, and could be registered with the PPSR or the registration of as a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally in nature rather than stating security over a particular asset. The person who signs the ensure is personally accountable if 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 reflects security interests which are registered with respect to personal property (including items or assets). The PPSR permits the priority of personal property assigned depending on the date that a security interest was registered.
Caveats are legal form of document to offer an official notice of a claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250K we can offer a preliminary pre-approval to help make the process. We could be able to get this done without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial health checks. It is neither an offer nor a guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could be on different terms.
Do I qualify for funds?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own 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 to $500K)
How do I apply?
The application process is simple and easy. Complete the online form in just a few minutes, and an experienced company loan specialist will call you to guide you through the process.
To apply for up to $100,000, you’ll require identification details (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent and 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we can often provide a response in one hour – as long as you submit your request at standard company times and permit us to utilise the bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statements , we will be able to provide a decision in as little as an business day.
For the Larger Business Loan ($100K and up) we might be able to offer you with conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval within 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. You can also permit us to use the modern bank verification to verify your bank account information online. If you decide to send us documents from your account accounts, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) We can usually provide an answer within an hour – provided you submit your request at normal business timings and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements we can offer an answer in just the span of one business day.
For Larger Business Loans ($100K up to $500,000) we may be capable of offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The fastest method can be make sure you apply during normal business hours. You can also permit us to use the advance bank verification link to verify your bank account information online. If you opt to send us duplicates of your banking statement, it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we will consider a number of elements in order to assess how much we can lend you health of your company and the amount of repayments your company is able to afford. The total amount of your loan will be contingent on the particular circumstances for your business.
When you make an application for a set amount, we consider a variety of elements to determine your well-being of the company and the extent of payments your company is able to afford. The total amount of your loan will be contingent on the particular circumstances the business.
Fees & repayments
How do you charge for an business loan?
When you apply for business loans with us company loan, we will assess the risk assessment of your business and provide you with a customised offer, including the loan amount, the terms and interest rates. The company loan is a loan that is priced upfront which means you know the exact amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I will be charged?
Business loan interest rates differ based on various factors including the amount borrowed, the business assets the money will be used for, the industry the company is operating in, how long the business is in operation, what percentage of the business has enough cash flow to fund the loan, and the general well-being as well as creditworthiness business.
What are the charges?
There are no hidden fees for our company loans. You’ll know exactly how much you be required to pay and when, right from the day you sign up. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an application fee. You are able to make an application for loans with absolutely no upfront cost and no any obligation to sign up.
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. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan earlier?
You can choose to repay the entire amount of the advance loan at any time.
If you are deciding to take this route, please talk to one of our helpful company loan specialists. We will offer you with the details of your repayment and an early payout figure. This will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payment and 1.5% of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss payments and to work your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about the ways we gather the information we collect, use, share and safeguard your data, is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account information online. This allows us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the business owner makes use of the assets they have to obtain the loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a business asset like a truck or piece of equipment.
The majority of the lenders even the major banks, prefer to secure loans against assets. If you have trouble paying back the loan, your assets could be offered for sale by the lender. In essence it’s the process of securing new funding taking advantage of the value of what you already have.
What do I require security to get an company loan?
Up to $150K in loans there is no requirement for asset security prior to the loan’s access however, we do require a personal guarantee. So long as you comply with your loan obligations (as detailed in the loan contract), asset security will never be required. For loans over $150K generally there is a personal guarantee and security is provided in the form of an asset charge.