FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The West Ipswich Small Business Loans
Tell me about the West Ipswich Small Business Loans
West Ipswich unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from an traditional company loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and have the funds in your account in 24 hours. Traditional business loans have an annual rate of interest together with additional fees and charges. Our business loan is an upfront priced loan which means you know in advance the amount you will have to pay, including any interest, fees or charges. Then, it is divided into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every business use, including managing cash flows, business improvements, advertising to purchase inventory, new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
About the Larger West Ipswich Business Loans
What is the Larger West Ipswich Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been operating for at least three years and have an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be used for?
A large business loan can be used for nearly all company need, including company remodeling, buying inventory or new equipment for 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 to access funding over $150,000. This is in the form of a charge against assets, and could include registering this on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally based rather than stipulating the security of a specific asset. The person signing the ensure is personally liable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be granted depending on the date that a security interest that is registered.
Caveats are legal document filed to provide the legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan of $250,000 or more we can offer an initial pre-approval that will help smooth out the process. It is possible to make this decision without credit checks and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial health checks. It’s neither an offer nor a guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer you may receive may have different terms.
The application process
Do I qualify for funds?
You can 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)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Complete the online form within a couple minutes, and a dedicated company loan specialist will be in touch to guide you.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent, 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K and up) we usually offer an answer in just one hour, provided you make your application in quality company hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll provide the decision in just the span of one company day.
For the Larger Business Loan ($100K and up) we may be in a position to provide the conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain agreements have been approved in less than 24 hours.
The most effective method would be to ensure you apply during standard company hours. You can also allow us to use our modern bank verification to instantly verify your bank information online. If you send us documents from your account statements , it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we can often offer an answer within one hour, provided you make your application in normal business time and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements, we will be able to provide the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we might be capable of provide you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be faster depending upon the circumstances for each application. Some deals have been approved in the space of 24 hours.
The fastest method can be ensure you apply during standard business hours and permit us to use the modern bank verification link to confirm your bank details online. If you send us duplicates of your banking statement, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount we look at a variety of variables to determine what is the well-being for your company and the level of repayments that your company can support. The total amount of your loan will depend on the specifics for your business.
When you apply for a specific amount we consider a variety of aspects to determine your health for your company and the amount of repayments that your business will be able to support. The amount you receive from your loan will be determined by the particular circumstances the company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to apply for our business loan, we’ll assess the risk assessment for your business and offer an individualised offer, including the amount of the loan, the duration and interest rates. The company loan is an upfront priced loan which means you know the exact amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates depend on a variety of factors like the amount of money borrowed, the business assets the money will be used for and the sector the business operates in, how long the business is in operation, how long the company has sufficient cash flow to pay for the loan, and general well-being and creditworthiness of the business.
What are the cost?
There aren’t any hidden costs for our business loans. You’ll know precisely how much you’ll be required to pay, and when, right from the very first day. There’s no compounding interest and no additional fees (as long as you make your payments on time).
We do not charge an application fee. You are able to get a cash loan with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You can repay the entire amount of your loan at any point in time.
If you decide to take this route, please talk to one of our helpful company loan specialists. They will offer you with the details of your repayment and an early payout figure. The figure will be calculated as the total of the principal balance and any accrued interest at the date of early payout in addition to 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing the ways we gather data, process, exchange and protect your information, is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to security for our clients and privacy. We utilise a sophisticated bank verification system to immediately verify your bank account information online, allowing us to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an company owner makes use of the assets they have to obtain the funds for a loan. The asset may be a personal asset like the family home or a company property like a truck or piece of equipment.
The majority of banks, including the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan, then the asset could be offered for sale by the lender. In essence, it is means of securing new financing using the worth of the asset you already own.
Do I need security for an business loan?
For loans of up to $150K, no asset security is required in advance to gain access to the funds However, we do require an individual guarantee. So long as you comply with the terms of your loan (as stated in your loan contract) Asset security will never be required. For loans over $150,000 generally there is an individual ensure and security in the form of charges on assets.