FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Waterford Small Business Loans
Tell me what you think of the Waterford Small Business Loans
Waterford unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
You can apply for your Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and funds may be available in just 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. Our company loan is a pre-paid loan which means you be aware in advance of the total amount due, which includes any interest, fees or charges. Then, it is broken down into either a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business need, such as control of cash flow company improvements, advertising for purchasing inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Waterford Business Loans
What is the Larger Waterford Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to have been operating for at least three years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funds for?
A large business loan can be used for nearly every company use, including business renovations, purchase of inventory or new equipment or as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. This can be done as a result of an charge against assets, and could include registering this through the PPSR or making a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature rather than stating the security for a particular asset. The person who is signing the ensure is personally accountable if the business borrower 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 objects or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date a registration of a security interest.
The caveat can be described as a formal document filed to provide the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger business loans of $250K or more we can offer an initial pre-approval to ease the process. We may be able to do this without a credit check, and within six hours of your initial application. This pre-approval is based on an initial assessment that includes you answering a few financial well-being questions. It is not an offer or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you might receive could be subject to different terms.
The application process
Do I have the right to receive funds?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a couple minutes, and an experienced business credit specialist will call you to help you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we usually offer an answer within one hour – as long as you make your application within standard company time and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statements , we will be able to offer the decision in as little as one company day.
For the Larger Business Loan ($100K and up) we may be able to offer the conditional pre-approval within 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be quicker based on the circumstances of each application. Certain transactions have received approval in just 24 hours.
The fastest way would be to ensure you apply during standard company hours. Also, let us use the modern bank verification link to check your bank’s information online. If you choose to send us duplicates of your banking statement, it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour if you submit your request in normal business times and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statements, we’ll be able to provide the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to offer you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some deals have been approved in just 24 hours.
The quickest method can be ensure you apply during normal business hours. Also, allow us to use our sophisticated bank verification link to verify your bank information online. If you opt to upload the copies of bank statements, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a specific amount we consider a variety of factors that determine your well-being for your business and the level of the repayments your company can support. The amount you receive from your loan will be contingent on the specifics the business.
When you apply for a specific amount we will consider a number of aspects to assess the well-being for your company and the amount of the repayments your company is able to afford. The total amount of the loan will be determined by the specifics the business.
Fees & repayments
How much should you charge for a company loan?
When you apply for our company loans, we will assess the risk profile the company and provide you with a customised offer including the amount of loan, the term and the interest rates. The business loan is an upfront-priced loan which means you know the exact amount to be paid, including any charges, interest rates or fees.
What determines the rate that I will be charged?
Interest rates for company loans rates vary due to factors like the amount of money borrowed, the business assets the funds will be used for in addition to the industry that the business operates in, the long the company has been running and whether the business has sufficient cash flow to cover the loan, and overall health or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our company loans. You’ll know precisely what you be required to pay, and at what time, from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an application fee. You are able to get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You can choose to repay all of your loan at any point in time.
If you do decide to do this please contact our helpful company loan specialists. The professionals will provide you with the details of your repayment and an early payment figure. The figure will be calculated as the sum of the principal remaining and the accrued interest up to the time of the early payout and 1.5% of the remaining principal and any fees that remain unpaid.
How do repayments work?
To make sure that you don’t miss due dates and also to be in line with your cash flow general, we provide payments that are either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about the ways we gather information, use it, and exchange it, as well as secure your information, is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We use an advanced banking verification system to instantly confirm your bank account information online. This allows us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner makes use of assets they own to secure the funds for a loan. The asset could be a personal asset like the family home or a company asset such as a vehicle or other piece of machinery.
The majority of the lenders even the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan, the asset could be taken over by the lender. In essence it’s the process of securing additional financing using the value of what you already have.
What do I require security for a business loan?
For loans of up to $150,000, there is no requirement for asset security before you are able to access the money but we require a personal guarantee. require a personal guarantee. If you adhere to your loan commitments (as detailed in your loan contract document) the security of assets is not required. For loans over $150K typically, you will need the option of a personal ensure and security that is in the form charges on assets.