FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Wilton Small Business Loans
Tell me what you think of the Wilton Small Business Loans
Wilton unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary 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 the money could be available in just 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. The business loan is a pre-paid loan so you will be aware of the total amount payable including the interest, fees and charges. This is then divided into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business use, including control of cash flow business renovations, marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan cannot be used for personal reasons.
Concerning Larger Wilton Business Loans
What is the Larger Wilton Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost every company use, including company improvements, purchasing inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. This can be done by taking a charge over assets, and may include registering this with the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally based rather than defining security over a particular asset. The person signing the guarantee is personally responsible if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR allows priority over personal property to be granted depending on the date that a security interest was registered.
An affidavit is an official document lodged to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan that is greater than $250K we can offer a preliminary pre-approval to help simplify the process. It is possible to get this done without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial well-being questions. It’s not an offer or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer you may receive may be subject to different terms.
Do I have the right to receive funds?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in few minutes and a dedicated business loan specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statements, last 2 years finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer within one hour, provided you make your application at standard business timings and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements we can provide a decision within 1 business day.
If you are applying for a Larger Business Loan ($100K or more) we may be capable of offer you with pre-approval conditional to your application in about six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The fastest way would be to make sure you apply during normal company hours and allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you decide to send us copies of your bank statements , it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within one hour – as long as you submit your request at standard business timings and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements we can offer a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain offers have been approved within just 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 to verify your bank account information online. If you choose to send us the copies of bank statements, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of factors in order to assess the well-being that is your business as well as the amount of repayments your company is able to afford. The total amount of the loan will be determined by the specifics that are unique to your company.
When you make an application for a specific amount we take into consideration a variety of aspects to determine how much we can lend you such as health that is your company as well as the amount of repayments your business is able to afford. The total amount of the loan will be determined by the particular circumstances for your business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request one of our company loan, we will assess the risk assessment that you have for your company and provide you with a customised offer including the amount of loan, the term and interest rates. It is a company loan is an upfront cost loan and you’ll know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates depend on several factors like the amount of money of money borrowed, the business assets the funds are used to purchase and the sector the business operates in, how long the business has been running as well as what percentage of the business has enough cash flow to pay for the loan, as well as the general health as well as creditworthiness business.
What are the charges?
There are no hidden costs with our business loans, and you’ll be aware of the amount it is that you be required to pay and when, from the very 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 punctually).
We do not charge an application fee. You are able to make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you decide to do this please call our helpful company loans professionals. They will offer you with details for repayment and an early payment figure. It will be calculated using the sum of the principal balance and any accrued interest at the time of the early payout in addition to 1.5% of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically withdrawn from your 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 aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account information online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner makes use of an asset they own to make the funds for a loan. The asset can be an asset belonging to the personal, like the family home, or an company asset like a truck or piece or equipment.
The vast majority of lending institutions, including the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan, then the asset could be sold by the lender. In essence, it is means of securing new funding taking advantage of the value of what you already own.
Should I require security to secure an business loan?
For loans up to $150,000 it is not necessary to secure assets before you are able to access the money but we do require an individual guarantee. As long as you follow your loan commitments (as detailed in the loan contract) and you are able to meet your obligations, asset security is not required. For loans that exceed $150K, typically, you will need a personal guarantee and security in the form of charges on assets.