FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Western Springs Small Business Loans
Let me know how you can avail the Western Springs Small Business Loans
Western Springs unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from an ordinary business loan?
It is possible to apply for this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an instant response and the money could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum as well as other fees and charges. This company loan is a cash-based loan so you will know in advance the amount you will have to pay, including the interest, fees and charges. This is then broken down into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company use, including the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Western Springs Business Loans
What is the Larger Western Springs Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to have been operating for a minimum of 3 years, and have an annual income of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be used for?
A Larger Business Loan can be used for nearly every company use, including business improvements, purchasing inventory or new equipment as well as 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 as a result of an charge over assets and can be registered through the PPSR or filing a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally in nature rather than specifying the security for a particular asset. The person who is signing the ensure is personally responsible if the company creditor 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 lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR gives preference over private property assigned according to the date a security interest was registered.
The caveat can be described as a formal form of document to provide the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan of $250K or more, we may offer an initial pre-approval in order to make the process. We might be able to apply for this without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering some financial well-being checks. It is in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you might receive could be subject to different terms.
The application process
Can I be eligible for funding?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a couple minutes, and a dedicated company lending specialist will be in touch to help you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent twelve months of bank records, IRD statement, last 2 years finalised financial statements, plus interim current financial year financials as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you apply in quality company hours and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements , we’ll be able to offer an answer within 1 company day.
For the Larger Business Loan ($100K to $500K) we could be capable of provide you with a conditional pre-approval in around 6 hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Certain transactions have received approval within 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard business hours and allow us to use our modern bank verification to instantly verify your bank account information online. If you decide to send us the copies of bank statement, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) We can usually offer an answer in just one hour – as long as you make your application during standard business timings and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to submit copies of your bank statements, we are able to provide an answer within 1 business day.
If you are applying for Larger Business Loans ($100K and up) we could be likely to offer the conditional pre-approval in about six hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Some agreements have been approved within the space of 24 hours.
The most effective method would be to ensure you apply during normal business hours. You can also allow us to use our sophisticated bank verification to instantly verify your bank account information online. If you opt to send us documents from your account statement, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a specific amount we take into consideration a range of variables in order to assess how much we can lend you health of your business and the level of payments your company can support. The amount you receive from the loan will be determined by the specific circumstances the business.
When you submit an application for a particular amount, we look at a range of factors to assess the health of your company and the extent of repayments your business can afford. The amount you receive from the loan will be determined by the particulars that are unique to your business.
Fees & repayments
How much do you charge for an company loan?
If you decide to apply for business loans with us company credit, we will assess the risk profile of your business and provide you with a customised proposal that includes the amount of the loan, the duration and the interest rates. This business loan is a loan that is priced upfront which means you know the exact amount payable including any charges, interest rates or fees.
What determines the rate that I pay?
Interest rates for company loans rates depend on a variety of factors such as the amount that is borrowed, the company assets the money are used to purchase as well as the field the company operates in, how long the business has been in operation and what percentage of the business has enough cash flow to fund the loan, and overall well-being or financial standing of the company.
What are the costs?
There aren’t any hidden costs with our company loans, and you’ll know precisely what you need to pay and when, right from the day you sign up. There’s no compounding interest, and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to get a cash loan with without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan earlier?
You can repay the entire amount of your loan at any point in time.
If you are deciding to do this please talk to one of our helpful company loan professionals. They’ll provide you with details on repayment along with an early payout estimate. This is calculated as the sum of the principal remaining and any accrued interest at the time of early payout, plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing payments and to work with your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing how we collect data, process, exchange and secure your information, is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We make use of an advanced bank verification system that allows you to instantly verify the bank account details online, allowing us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner uses the assets they have to obtain the loan. The asset may be an asset belonging to the personal, like the family home or a company asset such as a vehicle or other piece of machinery.
The vast majority of banks, including the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, the asset might be taken over by the lender. In essence, it is an opportunity to secure new funding making use of the value of what you already own.
Are I need security to get a business loan?
For loans of up to $150K, no asset security is required in advance to gain access to the funds however, we require a personal guarantee. require an individual guarantee. As long as you follow your loan commitments (as stipulated in your loan contract), asset security will never be required. If you take out loans in excess of $150K generally, you are able to get the option of a personal guarantee and security is provided in the form of charges on assets.