FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Wiri Small Business Loans
Tell me more about Wiri Small Business Loans
Wiri unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from a traditional business loan?
The application to your Small Business Loan in under 10 minutes over the phone, receive an instant response and have the funds in your account within 24 hours. Traditional company loans reference an annual rate of interest together with additional fees and charges. We offer a business loan is a loan that is priced upfront therefore you’ll be aware in advance of the total amount payable including any fees, interest or charges. Then, it is divided into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly every business use, including control of cash flow business remodeling, marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available for personal reasons.
About the Larger Wiri Business Loans
What is the Larger Wiri Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been in operation for at least 3 years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost all business use, including company improvements, purchasing inventory or new equipment, 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 for funding of more than $150,000. It is usually by way of charge on assets, and could include registering this on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to repay credit that is general in nature rather than specifying security over an asset. The person who signs the ensure is personally accountable if the business 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 contains security interests which are registered with respect to personal property (including goods or assets). The PPSR gives priority over personal property to be assigned according to the date the security interest was registered.
The caveat can be described as a formal document lodged to provide the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting larger company loans of more than $250,000, we may offer an initial pre-approval to ease the process. It is possible to do this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering some financial well-being questions. This is neither an offer nor a guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you may receive may be on different terms.
Can I be eligible for funding?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form in few minutes and an experienced company expert in lending will be in touch to guide you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank statements, IRD statement, last 2 years finalised financial statements, plus interim financial statements for the current year, Aged Payables and Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we can often offer an answer within one hour if you apply in standard company timings and allow us to utilise the bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statement, we’ll provide the decision within just the span of one company day.
For the Larger Business Loan ($100K or more) we may be able to offer you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be quicker based on the particular circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method is to ensure you apply during normal business hours and let us use the modern bank verification link to instantly check your bank’s information online. If you choose to send us copies of your bank statements it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within an hour – provided you apply at standard business times and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can offer the decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to offer you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Some agreements have been approved in just 24 hours.
The quickest method is to make sure you apply during normal business hours, and allow us to use the sophisticated bank verification to verify your bank information online. If you choose to upload documents from your account statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of variables for determining what is the well-being of your company as well as the amount of the repayments your company will be able to support. The total amount of the loan will be determined by the specific circumstances that are unique to your company.
When you make an application for a certain amount, we take into consideration a variety of variables to determine your well-being of the company and the amount of repayments that your business can afford. The amount you receive from your loan will be determined by the specific circumstances of your business.
Fees & repayments
How much should you charge for an company loan?
If you decide to apply for business loans with us business financing, we will assess the risk assessment the company and offer you with a tailored offer including the amount of loan, the term and interest rates. It is a business loan is an upfront cost loan which means you know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I am charged?
Business loan interest rates depend on a variety of factors including the amount borrowed, what business assets the funds will be used for in addition to the industry that the company is operating in, how long the business has been in operation as well as in the event that the company has enough cash flow to support the loan, and general health as well as creditworthiness business.
What are the cost?
There are no hidden costs with our company loans. You’ll know exactly how much you’ll be required to pay and when, right from the first day. There’s no compounding and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an application fee. You can make an application for loans with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I repay the loan earlier?
You can decide to repay the entire amount of the loan in full at any time.
If you are deciding to take this route, please speak to our friendly company loans experts. They’ll offer you with details on repayment as well as an early payout amount. This is calculated as the total of the principal remaining plus any accrued interest as of the date of early payout and 1.5% of the principal amount remaining and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being transparent about the ways we gather, use, exchange and protect your information, is crucial and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We use an advanced bank verification system link to immediately confirm your bank account information online, allowing us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner borrows from an asset they own to make the loan. The asset may be an individual asset, such as the family home or an business asset like a truck or piece or equipment.
The majority of lenders, not just the big banks, tend to make loans secured by assets. If you are having difficulty paying back the loan, then the asset could be offered for sale by the lender. In essence, it’s the process of securing new funding making use of the value of what you already own.
What do I need security for a business loan?
For loans of up to $150,000, there is no requirement for asset security prior to the loan’s access however, we do need a personal guarantee. As long as you follow the loan terms (as stipulated in the loan contract), asset security will never be needed. For loans over $150K generally, you can get personal ensure and security in the form a charge over assets.