FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Whenuapai Small Business Loans
Let me know about the Whenuapai Small Business Loans
Whenuapai unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from a traditional company loan?
The application to get your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and the funds could be in your account within 24 hours. Traditional business loans refer to an annual rate of interest together with additional fees and charges. We offer a business loan is a loan that is priced upfront so you will know ahead of time the total amount to be paid, including the interest, fees and charges. This is then broken down into either weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company need, such as managing cash flows, company renovations, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal use.
About Larger Whenuapai Business Loans
What is the Larger Whenuapai 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 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been operating for at least three years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan is a great option for almost any company need, including business renovations, purchase of equipment or inventory, as 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 to access funding over $150,000. This can be done in the form of a charge on assets, which could also include registering this on the PPSR or registering as a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature, rather than stipulating the security of a specific asset. The person signing the guarantee is personally accountable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR gives preference over private property assigned according to the date the security interest has been registered.
A caveat is a legal form of document to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of more than $250K we may be able to provide an initial pre-approval to smooth out the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial well-being questions. It’s in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer that you are offered could be on different terms.
Do I have the right to receive funds?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for a 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 simple and simple. Just complete the online application within a couple minutes, and an experienced business lending specialist will contact you to guide you.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent, 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) We can usually offer an answer in just one hour, provided you submit your request in standard business hours and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements we can offer the decision in as little as an company day.
For the Larger Business Loan ($100K to $500K) we could be able to offer you with conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Certain deals have been approved in 24 hours.
The most effective method can be make sure you apply during standard company hours. You can also allow us to use our modern bank verification link to instantly confirm your bank details online. If you choose to upload documents from your account statement, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we typically offer an answer within an hour if you apply at standard business timings and you allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements, we are able to offer a decision in just an business day.
For Larger Business Loans ($100K or more) we may be likely to offer the conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some offers have been approved in the space of 24 hours.
The fastest method would be to make sure you apply during normal business hours. Also, permit us to use the advanced bank verification system link to confirm your bank details online. If you decide to upload duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of variables that determine how much we can lend you health for your company and the level of repayments that your business will be able to support. The total amount of your loan will be contingent on the specifics the business.
When you make an application for a certain amount, we look at a range of variables to assess how much we can lend you such as well-being of your company and the level of repayments your business will be able to support. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How much should you charge for an business loan?
If you decide to apply for one of our company credit, we’ll assess the risk profile of your business and offer you with a tailored offer, including loan amount, term and the interest rates. The business loan is an upfront priced loan therefore you will be aware of the total amount to be paid, including any charges or interest.
What determines the amount I pay?
Interest rates for company loans rates differ based on various variables like the amount to be borrowed, what company assets the funds will be used for and the sector the business operates in, the long the business has been in operation for, whether the company has sufficient cash flow to pay for the loan, and the overall well-being or creditworthiness of the company.
What are the cost?
There are no hidden fees with our business loans. You’ll know precisely what it is that you be required to pay, and when, starting from the day you sign up. There’s no compounding and there are no additional charges (as as you make your payments on time).
We don’t charge an Application Fee. You are able to request a credit loan no cost upfront or any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing 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 the loan.
Can I pay off the loan early?
You can choose to repay the entire amount of your loan in full at any time.
If you do decide to pursue this option, please call our helpful company credit professionals. The experts will offer you with details on repayment along with an early payout estimate. It will be calculated using the total of the remaining principal amount plus any accrued interest as of the time of early payment in addition to 1.5 percent of the principal amount remaining and any outstanding fees.
How do you make repayments work?
To make sure you do not miss payments and to work with your cash flow standard, we offer repayments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing how we collect, use, exchange and safeguard your data, is vital 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 techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We make use of an advanced bank verification system to immediately verify your bank account information online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an company owner utilises the assets they have to get the funds for a loan. The asset could be an individual property, such as the family home, or a business asset such as a vehicle as well as a piece of machine.
The majority of lending institutions, including the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan then your asset may be transferred to the lender. In essence, it is the process of securing new financing making use of the value of what you already have.
Should I need security to secure an business loan?
Up to $150,000 in loans the requirement for asset security is not required before you are able to access the money, however we require a personal guarantee. need a personal guarantee. If you adhere to the terms of your loan (as stipulated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150,000 generally, you can get a personal guarantee and security is provided in the form of a charge over assets.