FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Woodridge Small Business Loans
Tell me what you think of the Woodridge Small Business Loans
Woodridge unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
It is possible to apply for the Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and have the funds in your account in 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. We offer a business loan is a cash-based loan so you will know in advance the amount you will have to pay, including any fees, interest or charges. This is then broken down into either weekly or daily payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company reason, such as the management of cash flow, business remodeling, marketing for purchasing inventory or new equipment, for general working capital and so much more. The loan is not available to fund personal expenses.
About the Larger Woodridge Business Loans
What is the Larger Woodridge Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to have been in operation for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost every business reason, such as business improvements, purchasing inventory or new equipment as well as for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This is by way of charge over assets, which could also be registered in the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature, rather than specifying security over a particular asset. The person who signs the guarantee is personally liable in the event that the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR grants the priority of personal property granted according to the date the security interest that is registered.
Caveats are legal document lodged to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help simplify the process. We could be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial health checks. It is neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you are offered could have different conditions.
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 18 years, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six 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 application process is fast and easy. Just complete the online application within a couple minutes, and a dedicated company lending specialist will call you to assist you.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent twelve months of bank records, IRD statement Last 2 years’ finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within an hour if you submit your request at quality company hours and you allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we are able to offer an answer in as little as 1 company day.
If you are applying for a Larger Business Loan ($100K and up) we may be capable of provide you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some agreements have been approved in just 24 hours.
The fastest way can be make sure you apply during standard business hours and allow us to use the advanced bank verification system to instantly verify your bank account information online. If you decide to upload documents from your account statements it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide a response in one hour – provided you apply during standard business timings and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your bank statements, we are able to offer an answer in as little as 1 business day.
For Larger Business Loans ($100K up to $500,000) we could be likely to offer the conditional pre-approval in about six hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved within 24 hours.
The fastest way would be to make sure you apply during standard business hours and permit us to use the advanced bank verification system to instantly verify your bank information online. If you decide to send us documents from your account statements it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we consider a variety of elements that determine your health of your company and the extent of the repayments your business can afford. The total amount of your loan will be contingent on the specific circumstances the business.
When you submit an application for a set amount, we will consider a number of variables to assess the well-being for your company as well as the amount of the repayments your company will be able to support. The total amount of your loan will be contingent on the specifics for your company.
Fees & repayments
How much do you charge for a company loan?
When you request the company financing, we’ll assess the risk assessment for your business and offer you with a tailored offer, including the amount of the loan, the duration and interest rates. It is a business loan is an upfront-priced loan so you will know the exact amount due, which includes any interest rates, fees or charges.
What determines the amount I pay?
Business loan interest rates depend on a variety of variables like the amount to be of money borrowed, the company assets the funds are used to purchase and the sector the business operates in, the long the business has been operating for, in the event that the business has sufficient cash flow to cover the loan, as well as the general well-being as well as creditworthiness business.
What are the costs?
There are no hidden costs for our company loans. You’ll know exactly how much you be required to pay and when, right from day one. There’s no compounding interest and no extra fees (as as you make your payments in time).
We do not charge an Application Fee. You are able to make an application for loans without any upfront costs or any obligation to sign up.
The Origination Fee covers the expenses involved 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 percentage of the loan amount.
Can I pay off the loan earlier?
You can repay all of your loan at any point in time.
If you choose to take this route, please talk to one of our helpful business loans experts. They’ll offer you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the principal remaining and any accrued interest at the date of early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
To make sure you do not miss payments and to work your cash flow schedule, we offer repayments either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about the ways we gather data, process, exchange and secure your information, is vital and a vital 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 personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to security for our customers and security. We use an advanced bank verification system that allows you to instantly verify the bank account details online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a company owner makes use of assets they own to secure the funding. The asset can be an asset belonging to the personal, like the family home or it could be a company property like a truck as well as a piece of machine.
The vast majority of lending institutions, including the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan, then the asset could be offered for sale by the lender. In essence it’s the process of securing additional financing making use of the value of what you already have.
What do I need security for a business loan?
For loans up to $150,000 there is no requirement for asset security before you can access the money however, we do require a personal guarantee. If you adhere to the loan terms (as stated in your loan contract) the security of assets is not required. For loans over $150,000 generally there is personal guarantee and security that is in the form charges on assets.