FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Whiteside Small Business Loans
Tell me what you think of the Whiteside Small Business Loans
Whiteside unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
Apply for the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and the money could be in your account in 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. The business loan is a pre-paid loan so you will be aware in advance of the total amount due, which includes any fees, charges or charges. Then, it is broken down into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company purpose including managing cash flows, company renovations, marketing, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About Larger Whiteside Business Loans
What is the Larger Whiteside Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been operating for a minimum of 3 years with an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A large company loan can be used to fund almost every company purpose including business improvements, purchasing inventory or new equipment for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It is usually in the form of a charge on assets, and could include the registration of this on the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is generally based rather than defining security over a particular asset. The person who signs the guarantee is personally liable in the event that the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
A caveat is a legal document filed to offer the legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250K, we may offer a preliminary pre-approval to help ease the process. It is possible to get this done without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial well-being checks. It is not an offer of credit or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer that you may receive may have different terms.
The application process
Do I qualify for 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 business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in just a few minutes, and a dedicated business lending specialist will call you to help you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent and 12 months of bank records, IRD statement and the last two years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we usually offer an answer within one hour if you make your application within quality business time and let us make use of the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll offer an answer in just an business day.
For the Larger Business Loan ($100K or more) we may be capable of provide you with a conditional pre-approval within about 6 hours. After you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The quickest method can be make sure you apply during standard business hours, and permit us to use the advance bank verification link to verify your bank information online. If you opt to send us duplicates of your banking statements it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we typically offer an answer within an hour – provided you make your application during normal business time and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statement, we’ll provide an answer in as little as 1 business day.
For Larger Business Loans ($100K and up) we could be likely to provide the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain deals have been approved within the space of 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. You can also permit us to use the sophisticated bank verification link to verify your bank information online. If you opt to send us copies of your bank statements it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of aspects that determine your health for your business and the extent of repayments that your business can support. The amount you receive from your loan will depend on the specifics for your business.
When you make an application for a specific amount we will consider a number of variables to assess your health of your business as well as the amount of repayments that your business can afford. The amount you receive from your loan will depend on the particular circumstances the company.
Fees & repayments
How do you charge for the cost of a company loan?
When you request the company financing, we’ll assess the risk assessment of your company and provide you with a customised offer including the loan amount, the terms and the interest rates. The business loan is an upfront priced loan and you’ll know in advance the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I pay?
Business loan interest rates differ based on various factors including the amount borrowed, what business assets the money are used to purchase and the sector the company is operating in, how long the company is in operation and how long the business has sufficient cash flow to fund the loan, and general health or financial standing of the business.
What are the cost?
There aren’t any hidden costs for our business loans, and you’ll know precisely what you’ll be required to pay and when, right from the very first day. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can make an application for loans absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan earlier?
You may choose to pay back the entire amount of the loan early at any time.
If you choose to take this route, please speak to our friendly company lending experts. They’ll offer you with details on repayment along with an early payout estimate. It will be calculated using the sum of the principal amount remaining and the accrued interest up to the date of early payout in addition to 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about the ways we gather information, use it, and exchange it, as well as protect your information, is crucial 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 standards to secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We employ an exceptionally sophisticated bank verification system link to immediately verify your bank account details online, allowing us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the company owner uses assets they own to make a loan. The asset may be a personal asset like the family home, or an company asset such as a vehicle or piece or equipment.
The vast majority of the lenders not just the big banks, tend to guarantee loans against an asset. If you have trouble paying back the loan, the asset could be offered for sale by the lender. In essence, it’s a way of securing new financing using the value of what you already own.
Do I need security to get an business loan?
For loans that exceed $150,000, no asset security is required prior to the loan’s access however, we do need the personal guarantee. So long as you comply with the loan terms (as specified in your loan contract document), asset security will never be needed. For loans of over $150K generally, you are able to get a personal ensure and security that is in the form charges on assets.