FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Western Springs Small Business Loans
Tell me about the Western Springs Small Business Loans
Western Springs unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an ordinary business loan?
The application to this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and have the funds available in just 24 hours. Traditional company loans are based on an interest rate per annum as well as other fees and charges. The company loan is a pre-paid loan which means you know ahead of time the amount you will have to pay, including any interest, fees or charges. Then, it is divided into a daily or weekly payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company reason, such as managing cash flows, company improvements, advertising to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Western Springs Business Loans
What is the Larger Western Springs Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to be trading for at least 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A large business loan is a great option for almost any business use, including business renovations, purchase of inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It’s in the form of a charge against assets, and could include registering this with the PPSR or filing a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally in nature rather than stipulating the security for a particular asset. The person signing the ensure is personally liable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including objects or assets). The PPSR gives priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
An affidavit is an official document lodged to provide notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan of more than $250K, we may offer an initial pre-approval to make the process. We could be able to do this without credit checks and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial well-being questions. It’s neither an offer nor a guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer you are offered could be on different terms.
Do I qualify for funds?
You are eligible to apply for a 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’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a few minutes and a dedicated business lending specialist will contact you to assist you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we typically provide an answer in just one hour if you make your application at quality company timings and allow us to utilise the bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements , we are able to offer the decision in as little as the span of one company day.
For Larger Business Loans ($100K and up) we might be able to provide you with pre-approval conditional to your application in around six hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some agreements have been approved within just 24 hours.
The most effective method for you to apply is ensure you apply during normal company hours, and permit us to use the modern bank verification link to instantly verify your bank account information online. If you decide to upload copies of your bank statements , it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within an hour – as long as you apply in normal business timings and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements, we are able to offer an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) we could be likely to offer the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain transactions have received approval in less than 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours. You can also allow us to use the advance bank verification to instantly confirm your bank details online. If you choose to send us the copies of bank statements it will take a little longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of elements to determine the well-being of the business and the extent of repayments that your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances the company.
If you apply for a particular amount, we take into consideration a variety of factors to determine the well-being that is your company and the extent of repayments your company is able to afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to apply for one of our business financing, we will assess the risk profile of your business and offer you with a customised offer including the loan amount, the terms and interest rates. The company loan is a loan that is priced upfront so you will know the exact amount you will have to pay, including interest rates, fees or charges.
What determines the amount I pay?
Business loan interest rates depend on a variety of variables like the amount to be of money borrowed, the business assets the money are used to purchase, the industry the business operates in, the long the company has been running for, in the event that the business has sufficient cash flow to pay for the loan, and general health as well as creditworthiness company.
What are the cost?
There aren’t any hidden charges with our company loans, and you’ll know exactly how much you need to pay, and when, right from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to make an application for loans with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you decide to take this route, please call our helpful business loan professionals. We will provide you with details on repayment along with an early payout estimate. This will be calculated as the total of the principal balance and the accrued interest up to the date of early payout and 1.5% of the remaining principal and any outstanding fees.
How do repayments work?
To help you avoid missing payments and to work with your cash flow routine, we provide repayments either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and secure your information, is of paramount importance 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 standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We employ a highly sophisticated bank verification system link to instantly verify the bank account details online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term “asset-based” refers to borrowing where an company owner uses an asset they own to obtain the funds for a loan. The asset can be either an individual property, such as the family home, or an business asset such as a truck as well as a piece of machine.
The majority of lenders, not just the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan then your asset may be taken over by the lender. In essence it’s means of securing new financing using the value of what you already have.
Are I need security to get a business 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. If you adhere to your loan obligations (as detailed in your loan contract) the security of assets will never be required. If you take out loans in excess of $150,000 generally there is a personal guarantee and security that is in the form an asset charge.