FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wellington Central Small Business Loans
Tell me more about Wellington Central Small Business Loans
Wellington Central unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an ordinary company loan?
The application for this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and the funds could be on your account within 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. This business loan is a pre-paid loan so you will be aware of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business need, such as the management of cash flow, 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 Wellington Central Business Loans
What is the Larger Wellington Central Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
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 loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to be trading for at least 3 years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A larger company loan can be used for nearly all company need, including business renovations, purchase of new equipment or inventory as well as for 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 needed for accessing funds over $150,000. This is by taking a charge on assets and can include the registration of this through the PPSR or registering as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature, rather than defining security over an asset. The person signing the guarantee is personally responsible if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR grants prioritisation over property that is personal to be granted according to the date the security interest has been registered.
An affidavit is an official document lodged to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan of more than $250K we may be able to provide an initial pre-approval that will help ease the process. We could be able to get this done 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 some financial well-being checks. This is not an offer or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you might receive could have different conditions.
Do I qualify for funds?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own 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 trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Complete the online form within a few minutes and an experienced company lending specialist will be in touch to guide you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent, 12 months of bank records, IRD statements, last 2 years finalised financial statements, and interim current financial year financials including Aged Payables, Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within one hour, provided you make your application within standard company times and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statements , we’ll be able to offer an answer within just 1 business day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to offer you with conditional pre-approval within 6 hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Certain deals have been approved within less than 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours, and let us use the advance bank verification to check your bank’s information online. If you opt to upload duplicates of your banking statements , it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we can often provide a response in one hour if you make your application during normal business timings and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements, we’ll be able to provide an answer in as little as one business day.
For the Larger Business Loans ($100K to $500K) we could be able to provide you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some offers have been approved within less than 24 hours.
The fastest method would be to ensure you apply during normal business hours and allow us to use the advance bank verification to verify your bank account information online. If you decide to send us copies of your bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a certain amount we take into consideration a range of elements to determine what is the health of the company and the extent of the repayments your business is able to afford. The total amount of your loan will be contingent on the specifics of your business.
If you apply for a specific amount we look at a range of variables to assess your well-being that is your company and the amount of the repayments your business can support. The total amount of the loan will be determined by the specifics the business.
Fees & repayments
How do you charge for a company loan?
When you apply for our business credit, we’ll assess the risk profile that you have for your company and provide an individualised offer including the amount of the loan, the duration and interest rates. It is a company loan is an upfront priced loan therefore you will be aware of the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
The interest rates on business loans rates vary due to factors such as the amount that is of money borrowed, the business assets the money will be used for and the sector the company operates in, the long the company has been running as well as what percentage of the business has sufficient cash flow to pay for the loan, as well as the general health or creditworthiness of the company.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll know precisely what you’ll be required to pay and when, starting from the day you sign up. There’s no compounding interest, and there are no additional charges (as as you make your payments in time).
We don’t charge an application fee. You are able to get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay off the loan earlier?
You can decide to repay the entire amount of the loan at any point in time.
If you choose to do this please speak to our friendly company credit experts. The experts will offer you with repayment details and an early payout figure. It will be calculated using the total of the principal remaining and any accrued interest at the time of the early payout, plus 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we provide repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and knowing how we collect information, use it, and exchange it, as well as secure your information, 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 techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We use an advanced bank verification system to immediately confirm your bank account information online to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner utilises the assets they have to make a loan. The asset could be an asset belonging to the personal, like the family home or an business property like a truck or piece or equipment.
The majority of lenders, including the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then the asset could be sold by the lender. In essence it’s a way of securing new financing by using the worth of the asset you already have.
Should I need security to secure a company loan?
For loans that exceed $150,000, it is not necessary to secure assets prior to the loan’s access, however we require a personal guarantee. need an individual guarantee. As long as you follow the loan terms (as stated in your loan contract document) the security of assets will never be required. For loans over $150K generally there is the option of a personal ensure and security that is in the form charges on assets.