FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Whitby Small Business Loans
Tell me what you think of the Whitby Small Business Loans
Whitby unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from the traditional company loan?
The application to the Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and funds may be in your account in 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. We offer a company loan is a loan that is priced upfront which means you know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then broken down into either a daily or weekly payment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business reason, such as cash flow management, company renovations, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available to fund personal expenses.
About larger Whitby Business Loans
What is the Larger Whitby Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been in operation for at least 3 years and have an annual turnover of $700,000. The applicant must also 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 the least 12 months of operating.
What can the funding be used for?
A Larger Business Loan can be used for nearly any company use, including company improvements, purchasing new equipment or inventory 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 required for accessing funds over $150,000. It’s in the form of a charge against assets, and may include registering this through the PPSR or making as a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is generally in nature rather than defining security over an asset. The person who signs the guarantee 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 operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned according to the date a security interest that is registered.
Caveats are legal document lodged to offer notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K it’s possible to offer an initial pre-approval in order to smooth out the process. We could be able to make this decision without a credit check and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial well-being questions. This is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you receive could be on different conditions.
Can I be eligible for funding?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for 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 simple and simple. Just fill out the online application within a few minutes and a dedicated business loan specialist will contact you to guide you.
To apply for up $100,000 you’ll need identification details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent and 12 months of bank statements, IRD statements, last 2 years finalised financial statements, and interim current financial year financials, Aged Payables and Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we can often offer an answer within one hour – as long as you submit your request within quality business timings and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statements , we are able to offer an answer within one business day.
For the Larger Business Loan ($100K up to $500,000) we may be able to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some transactions have received approval in 24 hours.
The fastest way can be ensure you apply during standard business hours. Also, allow us to use the advance bank verification link to instantly check your bank’s information online. If you upload duplicates of your banking statements it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we usually provide an answer within an hour if you make your application in standard business timings and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements we can offer an answer in just the span of one business day.
For Larger Business Loans ($100K and up) we could be able to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved within the space of 24 hours.
The quickest method would be to make sure you apply during standard business hours, and allow us to use our advance bank verification link to verify your bank information online. If you opt to send us duplicates of your banking statements, it may take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a specific amount we look at a variety of elements for determining how much we can lend you well-being of your business and the extent of the repayments your business is able to afford. The total amount of your loan will depend on the specific circumstances the company.
When you submit an application for a particular amount, we will consider a number of elements to assess your well-being of the business and the level of payments your company is able to afford. The total amount of your loan will depend on the specific circumstances for your company.
Fees & repayments
How much do you charge for an business loan?
When you apply for the business credit, we will assess the risk assessment for your company and provide you with a tailored offer, including the amount of loan, the term and interest rates. It is a company loan is an upfront priced loan therefore you will be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I will be charged?
Interest rates for business loans rates differ based on various factors such as the amount that is borrowed, what company assets the funds will be used for, the industry the business operates in, how long the business has been running as well as what percentage of the business has sufficient cash flow to support the loan, and also the general health as well as creditworthiness company.
What are the charges?
There aren’t any hidden costs with our company loans, and you’ll know exactly how much it is that you need to pay, and when, from the first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to 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 commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You can repay all of your loan early at any time.
If you do decide to take this route, please call our helpful company loans professionals. We will provide you with details for repayment along with an early payout estimate. It will be calculated using the total of the principal balance plus any accrued interest as of the time of the early payout plus 1.5 percent of the principal amount remaining and any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work your cash flow schedule, we provide repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear the ways we gather the information we collect, use, share and protect your information, is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We use an advanced banking verification system to instantly confirm your bank account information online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a company owner utilises an asset that they own to obtain the funding. The asset may be an asset belonging to the personal, like the family home or a company asset like a truck or other piece of machinery.
The majority of banks, including the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset might be offered for sale by the lender. In essence it is a way of securing new funding using the worth of the asset you already own.
Are I need security to secure a company loan?
Up to $150K in loans it is not necessary to secure assets before you are able to access the money, however we do require the personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract document) the security of assets will never be required. For loans over $150,000 generally there is personal guarantee and security that is in the form the charge of assets.