FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Wacol Small Business Loans
Tell me how you are able to avail the Wacol Small Business Loans
Wacol unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an traditional company loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and the funds could be available in just 24 hours. Traditional business loans have an annual interest rate plus other fees and charges. Our company loan is a cash-based loan so you will be aware of the amount you will have to pay, including the interest, fees and charges. This is then divided into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business use, including managing cash flows, business improvements, advertising to purchase inventory, new equipment, as general working capital and so much more. The loan is not available for personal reasons.
About Larger Wacol Business Loans
What is the Larger Wacol Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
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 be eligible for a loan that is this large, your business needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can the funding be used for?
A Business Loan of a larger size can be used to fund almost any business use, including company renovations, to purchase inventory or new equipment for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is by way of charge against assets, and could include the registration of this in the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature rather than stipulating the security for a particular asset. The person who is signing the ensure is personally liable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR allows the priority of personal property granted depending on the date that a security interest has been registered.
The caveat can be described as a formal document filed to offer the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of more than $250,000 it’s possible to offer an initial pre-approval to smooth out the process. We could be able to get this done without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial health questions. It is not an offer of credit or guarantee of credit. A conditional approval is subject an exhaustive credit evaluation, and any offer you may receive may be on different terms.
Application process
Do I qualify for funds?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and an experienced company expert in lending will contact you to assist you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically offer an answer within one hour if you make your application in quality company times and allow us to utilise the bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements , we’ll be able to provide an answer in just the span of one business day.
For Larger Business Loans ($100K or more) we may be in a position to offer you with a conditional pre-approval in about 6 hours. After you’ve signed your 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 circumstances of each application. Some agreements have been approved within 24 hours.
The most effective method would be to make sure you apply during standard company hours and allow us to use our advance bank verification to verify your bank account information online. If you choose to send us duplicates of your banking statements , it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) We can usually offer an answer within an hour – provided you make your application within standard business times and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements we can provide a decision in just an business day.
If you are applying for Larger Business Loans ($100K and up) we may be capable of provide the conditional pre-approval in about six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Some transactions have received approval within the space of 24 hours.
The quickest method is to ensure you apply during standard business hours. Also, let us use the sophisticated bank verification to check your bank’s information online. If you upload documents from your account statements it may take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of elements for determining what is the well-being of your business and the level of repayments that your company can support. The amount you receive from your loan will be contingent on the specifics for your company.
When you submit an application for a certain amount, we look at a range of elements to assess your well-being of your business and the extent of the repayments your company can support. The amount you receive from your loan will be determined by the particulars of your business.
Fees & repayments
How much should you charge for a business loan?
If you decide to request business loans with us business loan, we will assess the risk assessment that you have for your company and provide you with a tailored proposal that includes loan amount, term and interest rates. This business loan is an upfront priced loan therefore you will know the exact amount due, which includes any costs, fees, or interest rates.
What determines the amount I will be charged?
Business loan interest rates differ based on various factors like the amount of money borrowed, the business assets the funds are used to purchase in addition to the industry that the company operates in, the long the company has been running, what percentage of the business has enough cash flow to pay for the loan, and overall well-being and creditworthiness of the business.
What are the fees?
There are no hidden costs for our business loans, and you’ll know precisely what it is that you be required to pay, and when, from the day you sign up. There’s no compounding interest, and no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You are able to apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay all of your loan early at any time.
If you choose to do this please speak to our friendly business lending experts. We will provide you with repayment details along with an early payout estimate. The figure will be calculated as the sum of the principal remaining and any accrued interest at the time of early payout plus 1.5% of the principal remaining and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing how we collect, use, exchange and ensure the security of your information is crucial and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to customer security and privacy. We employ an exceptionally sophisticated bank verification system to instantly confirm your bank account information online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner makes use of an asset they own to obtain the loan. The asset can be either a personal asset like the family home or a company asset such as a truck as well as a piece of machine.
The vast majority of the lenders even the major banks, prefer to secure loans against an asset. If you have trouble paying back the loan, then your assets could be taken over by the lender. In essence it’s the process of securing new financing by using the value of what you already have.
Do I require security for an business loan?
For loans of up to $150,000, there is no requirement for asset security before you can access the money However, we require a personal guarantee. need a personal guarantee. If you adhere to your loan obligations (as stipulated in your loan contract), asset security will never be required. For loans that exceed $150,000, generally, you can get personal ensure and security in the form of charges on assets.