FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Wiri Small Business Loans
Let me know about the Wiri Small Business Loans
Wiri unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from an traditional company loan?
The application for the Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and the money could be in your account in 24 hours. Traditional business loans reference an interest rate per annum along with other charges and fees. Our company loan is an upfront priced loan therefore you’ll be aware of the total amount to be paid, including any interest, fees or charges. This is then divided into weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost every company reason, such as cash flow management, business remodels and marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available for personal use.
About Larger Wiri Business Loans
What is the Larger Wiri Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the company needs to be trading for at least 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can the funding be used for?
A Business Loan of a larger size is a great option for almost all company purpose including business renovations, purchase of equipment or inventory for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. This is as a result of an charge over assets and can include registration in the PPSR or the registration of a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is generally based rather than stating the security for a particular asset. The person who is signing the ensure is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR permits preference over private property assigned according to the date the security interest that is registered.
Caveats are legal document filed to provide the legal claim to property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250,000 we can offer a preliminary pre-approval to help make the process. We might be able to make this decision without credit checks and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial well-being questions. It’s neither an offer nor a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you might receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You may be eligible for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a couple minutes, and a dedicated company expert in lending will contact you to help you.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $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: Information on the application including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer within an hour if you submit your request during quality business times and let us use the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements , we are able to offer the decision within one company day.
For the Larger Business Loan ($100K to $500K) we might be able to offer you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Some transactions have received approval within just 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours, and permit us to use the modern bank verification to instantly verify your bank account information online. If you send us documents from your account statements it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we typically provide an answer in just one hour – as long as you make your application within standard business hours and allow us to use the bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statements, we are able to offer the decision in just 1 business day.
For the Larger Business Loans ($100K up to $500,000) we may be able to provide you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain deals have been approved in less than 24 hours.
The quickest method is to make sure you apply during standard business hours and let us use the advanced bank verification system to instantly check your bank’s information online. If you decide to send us duplicates of your banking accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a certain amount we look at a variety of elements that determine your well-being of your company and the amount of repayments that your business can support. The amount you receive from the loan will be determined by the specific circumstances for your business.
When you make an application for a particular amount, we will consider a number of elements to assess the health of the business and the amount of the repayments your business can support. The total amount of your loan will depend on the specifics for your company.
Fees & repayments
How much do you charge for an business loan?
If you decide to apply for business loans with us business credit, we will assess the risk assessment that you have for your business and offer an individualised proposal that includes the amount of the loan, the duration and the interest rates. A business loan is an upfront priced loan which means you be aware in advance of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
The interest rates on business loans rates differ based on various factors including the amount borrowed, what business assets the funds are used to purchase in addition to the industry that the company operates in, the long the business has been operating, whether the business has enough cash flow to cover the loan, and general health or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll know exactly how much it is that you be required to pay, and when, right from day one. There’s no compounding interest and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You can repay the entire amount of the loan in full at any time.
If you choose to pursue this option, please contact our helpful business loans specialists. They’ll provide you with the details of your repayment along with an early payout estimate. This will be calculated as the total of the remaining principal amount plus any accrued interest as of the date of early payout, plus 1.5 percent of the remaining principal plus any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear how we collect the information we collect, use, share and ensure the security of your information is vital and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We make use of an advanced bank verification system to immediately verify the bank account details online, allowing us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term “asset-based” refers to borrowing where a company owner uses the assets they have to secure the funds for a loan. The asset could be a personal asset like the family home, or a business asset such as a truck or piece of equipment.
The majority of lending institutions, not just the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan, then the asset might be sold by the lender. In essence it is means of securing new financing taking advantage of the value of what you already own.
Should I need security to secure an business loan?
For loans of up to $150K, it is not necessary to secure assets in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. If you adhere to the loan terms (as detailed in your loan contract document), asset security will never be needed. If you take out loans in excess of $150,000 typically, you will need the option of a personal guarantee and security that is in the form a charge over assets.