FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the West End Small Business Loans
Let me know what you think of the West End Small Business Loans
West End unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an ordinary company loan?
Apply to your Small Business Loan in under 10 minutes online or over the phone, receive a same day response and funds may be in your account within 24 hours. Traditional company loans are based on an annual interest rate plus other fees and charges. The business loan is a loan that is priced upfront so you will be aware in advance of the total amount due, which includes any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business reason, such as cash flow management, business remodels and marketing to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger West End Business Loans
What is the Larger West End Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size is a great option for almost any business purpose including business renovations, to purchase new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It is usually by way of charge over assets, and may include registering this on the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is general in nature, rather than stating the security of a specific asset. The person who is signing the ensure is personally liable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including the assets or goods). The PPSR permits priority over personal property to be granted according to the date the registration of a security interest.
Caveats are legal document filed to provide the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan of more than $250K we can offer an initial pre-approval in order to make the process. We could be able to get this done without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial health checks. It is not an offer of credit or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer you might receive could be based on different terms.
Application process
Do I have the right to receive funds?
You can apply for an 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)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form in few minutes and an experienced company loan specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll require ID details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent, 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we usually offer an answer in just one hour, provided you make your application within quality business times and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements , we are able to provide the decision in as little as one company day.
For Larger Business Loans ($100K or more) we might be capable of offer you with pre-approval conditional to your application within 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 upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The fastest way is to ensure you apply during standard business hours and let us use the modern bank verification link to confirm your bank details online. If you opt to send us documents from your account statements it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we can often offer an answer within an hour – as long as you make your application within normal business timings and let us use the bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements we can offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be in a position to offer you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some deals have been approved in less than 24 hours.
The quickest method is to ensure you apply during standard business hours and permit us to use the modern bank verification link to instantly verify your bank account information online. If you decide to send us copies of your bank statements it may take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a specific amount we will consider a number of elements in order to assess your well-being of your business as well as the amount of the repayments your company can afford. The total amount of your loan will be contingent on the particular circumstances the business.
If you apply for a certain amount, we will consider a number of variables to assess your health for your business and the extent of payments your business can support. The total amount of your loan will depend on the specifics for your company.
Fees & repayments
What is the cost for a company loan?
If you decide to apply for business loans with us business financing, we’ll assess the risk assessment that you have for your business and provide you with a tailored proposal that includes the amount of the loan, the duration and the interest rates. It is a company loan is an upfront cost loan therefore you will know the exact amount to be paid, including any interest rates, fees or charges.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on a variety of factors like the amount of money borrowed, what business assets the money will be used for and the sector the company is in, how long the business has been in operation as well as whether the company has sufficient cash flow to cover the loan, as well as the overall well-being and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs for our business loans. You’ll know exactly how much it is that you need to pay, and when, right from the day you sign up. There’s no compounding interest, and no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You can get a cash loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan earlier?
You may choose to pay back the entire amount of your loan at any point in time.
If you decide to pursue this option, please contact our helpful company credit experts. They will provide you with the details of your repayment and an early payment figure. This will be calculated as the sum of the principal amount remaining and accrued interest to the time of early payment and 1.5 percent of the principal remaining and any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as making it clear the ways we gather information, use it, and exchange it, as well as protect your information, is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to security for our customers and security. We make use of an advanced bank verification system to instantly verify the bank account details online. This allows us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner borrows from the assets they have to get the funds for a loan. The asset can be either an individual asset, such as the family home, or a business asset such as a vehicle or other piece of machinery.
The vast majority of banks, not just the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan then your asset may be sold by the lender. In essence it is means of securing new funding taking advantage of the value of what you already own.
Are I need security to secure an company loan?
Up to $150,000 in loans no asset security is required upfront to access the money but we do need an individual guarantee. As long as you follow the terms of your loan (as stated in your loan contract), asset security will never be needed. For loans over $150,000 generally, there is personal guarantee and security in the form of charges on assets.