FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Weymouth Small Business Loans
Let me know how you are able to avail the Weymouth Small Business Loans
Weymouth unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
You can apply to the Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and funds may be available in just 24 hours. Traditional company loans are based on an annual rate of interest together with additional fees and charges. Our company loan is a cash-based loan so you will be aware of the total amount to be paid, including any interest, fees or charges. Then, it is broken down into weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business purpose including control of cash flow company remodels and marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Weymouth Business Loans
What is the Larger Weymouth Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount the business needs to be in operation for at least 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used to fund almost all business use, including business renovations, to purchase equipment or inventory or as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This is by way of charge against assets, and may include the registration of this on the PPSR or filing as a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature rather than specifying security over a particular asset. The person signing the ensure 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 register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date the security interest has been registered.
Caveats are legal form of document to provide an official notice of a claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval that will help make the process. It is possible to get this done without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial well-being questions. It’s not an offer or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer you may receive may be based on different terms.
Do I qualify for funds?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in just a few minutes, and a dedicated company loan specialist will be in touch to guide you through the process.
For a loan of up to $100,000 you’ll require ID details (valid Driver’s License) and an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer within one hour, provided you submit your request at quality business time and permit us to utilise the bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements we can offer a decision within just one business day.
For Larger Business Loans ($100K and up) we may be capable of provide the conditional pre-approval in around 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 on the specifics of each application. Certain agreements have been approved in the space of 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard company hours and allow us to use our modern bank verification link to check your bank’s information online. If you choose to upload copies of your bank accounts, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour – as long as you make your application in standard business hours and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statements, we are able to provide an answer within one business day.
For the Larger Business Loans ($100K and up) We may be likely to offer the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Some offers have been approved in 24 hours.
The fastest method would be to make sure you apply during normal business hours. Also, permit us to use the advance bank verification link to instantly verify your bank information online. If you upload duplicates of your banking statement, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of variables to determine your well-being of the company and the amount of the repayments your business is able to afford. The total amount of your loan will be contingent on the specific circumstances of your company.
When you submit an application for a set amount, we consider a variety of elements to assess how much we can lend you such as well-being that is your company and the amount of repayments your business can afford. The amount you receive from your loan will depend on the specifics of your business.
Fees & repayments
How much do you charge for a business loan?
When you request business loans with us company loans, we’ll assess the risk assessment of your company and offer an individualised offer, including the amount of loan, the term and the interest rates. The company loan is an upfront-priced loan therefore you will be aware of the total amount payable including any interest rates, fees or charges.
What determines the rate that I will be charged?
The interest rates on business loans rates vary due to factors including the amount borrowed, what business assets the funds will be used for and the sector the business is in, how long the business has been in operation as well as how long the company has sufficient cash flow to cover the loan, and general well-being as well as creditworthiness business.
What are the fees?
There aren’t any hidden costs for our company loans, and you’ll know precisely how much you’ll be required to pay and when, right from day one. There’s no compounding and no extra fees (as as you make your payments in time).
We don’t charge an Application Fee. You are able to request a credit loan with with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan earlier?
You can repay all of your advance loan at any time.
If you choose to take this route, please talk to one of our helpful business lending professionals. We will provide you with details for repayment along with an early payout estimate. The figure will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout plus 1.5 percent of the principal 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 that are either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about how we collect data, process, exchange and safeguard your data, is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We utilise a sophisticated banking verification system to instantly confirm your bank account information online. This allows us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner makes use of assets they own to make a loan. The asset can be a personal asset like the family home or a business asset such as a truck as well as a piece of machine.
The majority of lenders, including the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan, the asset could be offered for sale by the lender. In essence it is means of securing additional financing taking advantage of the value of what you already have.
What do I need security to secure a company loan?
Up to $150,000 in loans there is no requirement for asset security upfront to access the money but we require a personal guarantee. need a personal guarantee. So long as you comply with your loan commitments (as specified in your loan contract document), asset security is not required. For loans that exceed $150K, generally there is personal ensure and security in the form charges on assets.