FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Westmere Small Business Loans
Let me know how you can avail the Westmere Small Business Loans
Westmere unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
You can apply for the Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and funds may be on your account within 24 hours. Traditional company loans have an annual interest rate together with additional fees and charges. Our company loan is a pre-paid loan so you will be aware in advance of the total amount to be paid, including any interest, fees or charges. This is then broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company need, such as cash flow management, company renovations, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
About Larger Westmere Business Loans
What is the Larger Westmere Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been operating for a minimum of 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly every company use, including business renovations, to purchase 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 needed for accessing funds over $150,000. This is as a result of an charge on assets, which could also be registered in the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is generally in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally liable in the event that the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR gives the priority of personal property assigned depending on the date that a registration of a security interest.
An affidavit is an official form of document to offer the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting larger business loans that exceeds $250K we may be able to provide a preliminary pre-approval to help make the process. We may be able to get this done without a credit check and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being questions. It’s in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you are offered could be based on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and an experienced business lending specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s License), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent, 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, plus interim current financial year financials as well as Aged Payables and Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour if you make your application within standard business time and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statements we can offer an answer within the span of one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be in a position to provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Certain deals have been approved within less than 24 hours.
The most efficient method can be ensure you apply during normal company hours. Also, let us use the advance bank verification link to verify your bank account information online. If you choose to send us documents from your account statements it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we usually provide an answer in just one hour – provided you make your application at standard business hours and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statement, we’ll provide the decision within one business day.
For Larger Business Loans ($100K and up) we may be in a position to offer you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Certain deals have been approved within the space of 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours. You can also let us use the advance bank verification to verify your bank account information online. If you decide to send us duplicates of your banking statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of factors that determine the well-being for your company as well as the amount of the repayments your business is able to afford. The total amount of your loan will depend on the specifics for your company.
When you submit an application for a set amount, we will consider a number of aspects to determine your health for your company and the amount of the repayments your business can support. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for a company loan?
When you make an application for business loans with us company financing, we’ll assess the risk profile of your company and offer you with a customised offer that includes the amount of the loan, the duration and interest rates. A business loan is an upfront cost loan and you’ll be aware in advance of the total amount payable including any charges, interest rates or fees.
What determines the rate that I’m charged?
Interest rates for business loans rates depend on several variables like the amount to be of money borrowed, the company assets the funds will be used for, the industry the company operates in, the long the company has been in operation for, what percentage of the company has enough cash flow to pay for the loan, and also the general well-being and creditworthiness of the company.
What are the fees?
There aren’t any hidden costs with our business loans. You’ll know exactly how much you’ll need to pay, and when, right from the very first day. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You can apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan earlier?
You can repay the total amount of your loan in full at any time.
If you do decide to pursue this option, please call our helpful business lending specialists. They will offer you with repayment details as well as an early payout amount. The figure will be calculated as the sum of the principal balance and any accrued interest at the time of the early payout, plus 1.5 percent of the principal balance as well as any outstanding fees.
How do repayments work?
To make sure that you don’t miss payments and to work your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear the ways we gather information, use it, and exchange it, as well as safeguard your data, is crucial and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and security. We make use of an advanced bank verification system that allows you to instantly verify your bank account information online so we can provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner makes use of assets they own to make a loan. The asset could be an individual asset, such as the family home, or a company asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, even the banks with the biggest size, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, your asset may be sold by the lender. In essence, it’s a way of securing new funding using the value of what you already own.
Should I require security for an company loan?
For loans of up to $150,000, it is not necessary to secure assets prior to the loan’s access however, we do need the personal guarantee. So long as you comply with the terms of your loan (as stated in the loan contract) Asset security is not needed. For loans over $150K generally there is the option of a personal guarantee and security in the form of an asset charge.