FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wavell Heights Small Business Loans
Tell me how you can avail the Wavell Heights Small Business Loans
Wavell Heights unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional business loan?
You can apply to the Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and have the funds in your account within 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. We offer a business loan is an upfront priced loan so you will be aware of the total amount due, which includes any fees, charges or charges. Then, it is broken down into either weekly or daily payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business purpose including the management of cash flow, company remodels and marketing to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal reasons.
About Larger Wavell Heights Business Loans
What is the Larger Wavell Heights Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been trading for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funds be utilised?
A large business loan can be used to fund almost all company purpose including company improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It is usually by way of charge against assets, and could be registered with the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally in nature rather than defining security over a particular asset. The person who signs the ensure is personally liable in the event that the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR permits priority over personal property to be assigned according to the date a registration of a security interest.
Caveats are legal document filed to offer notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger company loans that is greater than $250K we can offer a preliminary pre-approval to help ease the process. We may be able to do this without a credit verification and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial health questions. It is neither an offer nor a guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you may receive may be based on different conditions.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form in just a few minutes, and an experienced business expert in lending will be in touch to guide you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we can often offer an answer within an hour if you submit your request during quality company times and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we are able to offer an answer in just 1 business day.
For the Larger Business Loan ($100K or more) we may be likely to offer you with a conditional pre-approval within 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, this can be quicker based on the circumstances of each application. Some offers have been approved in 24 hours.
The quickest method is to make sure you apply during standard business hours and allow us to use our modern bank verification to instantly verify your bank account information online. If you choose to upload duplicates of your banking accounts, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you apply at standard business time and permit us to use the bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements, we will be able to provide the decision in as little as an business day.
For Larger Business Loans ($100K and up) We may be able to offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Some agreements have been approved within 24 hours.
The most effective method would be to make sure you apply during standard business hours and allow us to use the sophisticated bank verification to instantly check your bank’s information online. If you opt to upload copies of your bank statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a particular amount, we consider a variety of elements for determining the well-being of your business and the amount of the repayments your company can afford. The total amount of your loan will depend on the particular circumstances of your business.
When you make an application for a certain amount, we will consider a number of factors to determine how much we can lend you such as well-being that is your company as well as the amount of payments your company will be able to support. The amount you receive from your loan will be determined by the particular circumstances of your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to request one of our business financing, we will assess the risk assessment for your company and offer you with a customised offer that includes loan amount, term and interest rates. It is a business loan is an upfront priced loan and you’ll know in advance the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I am charged?
The interest rates on company loans rates vary due to variables like the amount to be borrowed, the company assets the money are used to purchase, the industry the company is in, how long the business has been running and how long the business has enough cash flow to support the loan, and the overall well-being as well as creditworthiness business.
What are the cost?
There aren’t any hidden charges for our business loans, and you’ll know precisely how much you’ll need to pay and when, starting from the very first day. There’s no compounding and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to apply for a loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay all of your advance loan at any time.
If you do decide to pursue this option, please contact our helpful company credit experts. We will offer you with repayment details as well as an early payout amount. This will be calculated as the total of the principal remaining and the accrued interest up to the time of early payout plus 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing the ways we gather information, use it, and exchange it, as well as secure your information, is of huge importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We use an advanced bank verification system to instantly confirm your bank account information online to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an company owner utilises assets they own to obtain the funds for a loan. The asset can be either a personal asset like the family home or an business asset such as a truck as well as a piece of machine.
The majority of lending institutions, not just the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, your assets could be transferred to the lender. In essence, it’s the process of securing additional financing using the worth of the asset you already own.
Do I need security for an business loan?
Up to $150K in loans the requirement for asset security is not required before you are able to access the money however, we do need an individual guarantee. As long as you follow the terms of your loan (as specified in the loan contract), asset security is not needed. For loans over $150,000 generally there is a personal ensure and security in the form a charge over assets.