FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wellington Point Small Business Loans
Tell me more about Wellington Point Small Business Loans
Wellington Point unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and the funds could be in your account within 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. The company loan is an upfront priced loan which means you know in advance the total amount due, which includes any fees, charges or charges. Then, it is divided into weekly or daily repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business purpose including cash flow management, business remodels and marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
About larger Wellington Point Business Loans
What is the Larger Wellington Point Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large, your company needs to be in operation for at least 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost every business need, including company renovations, purchase of equipment or inventory 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 required for funding of more than $150,000. This is as a result of an charge against assets, and may include registering this through the PPSR or making a caveat.
A personal or director’s guarantee is a promise to repay a loan which is general in nature rather than specifying security over an asset. The person signing the guarantee is personally responsible if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including items or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date the registration of a security interest.
A caveat is a legal document filed to provide an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250,000 we can offer an initial pre-approval in order to smooth out the process. We might be able to get this done without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial health checks. This is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer you might receive could have different conditions.
The application process
Can I be eligible for funding?
You may apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in few minutes and a dedicated business credit specialist will call you to assist you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s License), a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer in just one hour if you apply at quality company timings and let us utilise the bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements we can provide the decision within just one business day.
For the Larger Business Loan ($100K and up) we might be capable of provide you with a conditional pre-approval within about 6 hours. After you’ve signed your 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. Some agreements have been approved within 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours. Also, let us use the advanced bank verification system to instantly verify your bank information online. If you decide to upload the copies of bank statement, it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within one hour, provided you make your application within normal business hours and allow us to use the 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 the decision within an business day.
For the Larger Business Loans ($100K and up) we may be able to offer you with pre-approval conditional to your application in around six hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved in just 24 hours.
The most efficient method would be to make sure you apply during normal business hours, and allow us to use the advanced bank verification system to verify your bank information online. If you send us copies of your bank accounts, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a certain amount, we look at a variety of variables to determine your health of your business and the extent of repayments your business can afford. The amount you receive from your loan will depend on the specifics of your company.
When you make an application for a certain amount, we look at a range of aspects to determine how much we can lend you such as well-being that is your business as well as the amount of the repayments your business can support. The total amount of your loan will be contingent on the specific circumstances of your company.
Fees & repayments
How do you charge for a business loan?
When you make an application for our business credit, we will assess the risk assessment of your company and offer you with a customised offer including the loan amount, the terms and interest rates. A company loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I’m charged?
The interest rates on company loans rates vary due to factors including the amount borrowed, the business assets the funds will be used for, the industry the business operates in, the long the company has been running, what percentage of the company has enough cash flow to pay for the loan, and general well-being or financial standing of the business.
What are the charges?
There are no hidden fees for our business loans. You’ll know exactly how much you need to pay and when, starting from the day you sign up. There’s no compounding interest and the loan comes with 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 request a credit loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I repay the loan in advance?
You can repay the entire amount of your loan early at any time.
If you choose to do this please call our helpful business credit specialists. They will offer you with the details of your repayment and an early payout figure. This will be calculated as the total of the principal amount remaining and accrued interest to the time of the early payout, plus 1.5% of the principal amount remaining plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and being transparent about how we collect the information we collect, use, share and protect your information, is vital and is an essential aspect 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 personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We employ an exceptionally sophisticated bank verification system to instantly verify your bank account details online. This allows us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an company owner borrows from an asset that they own to get the funding. The asset may be an individual asset, such as the family home, or an business property like a truck or piece or equipment.
The majority of the lenders not just the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan then the asset might be transferred to the lender. In essence it’s the process of securing new financing making use of the value of what you already have.
Do I require security to secure an business loan?
For loans of up to $150,000, no asset security is required before you are able to access the money however, we do require the personal guarantee. If you adhere to your loan commitments (as detailed in the loan contract) Asset security is not needed. For loans over $150K typically, you will need a personal guarantee and security is provided in the form of a charge over assets.