FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Windaroo Small Business Loans
Let me know how you are able to avail the Windaroo Small Business Loans
Windaroo unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 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 company loan?
You can apply to get this Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and funds may be on your account within 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. We offer a business loan is a pre-paid loan so you will be aware in advance of the total amount to be paid, including any interest, fees or charges. Then, it is divided into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company need, such as control of cash flow company improvements, advertising, to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal reasons.
About Larger Windaroo Business Loans
What is the Larger Windaroo Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been 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) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly all company purpose including company renovations, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This can be done by taking a charge over assets, which could also be registered on the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is generally in nature rather than stating security over an asset. The person who signs the guarantee is personally responsible if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR allows prioritisation over property that is personal to be granted in accordance with the date on which a security interest was registered.
An affidavit is an official document that is filed to offer the legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans that is greater than $250,000 it is possible to offer an initial pre-approval in order to ease the process. We could be able to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial health checks. This is not an offer of credit or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer you receive could be based on different conditions.
Application process
Are I eligible for funding?
You can apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a couple minutes, and an experienced business credit specialist will contact you to assist you.
To apply for up to $100,000 you’ll need identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent, 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer in just one hour, provided you make your application at quality business times and let us utilise the bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements we can offer the decision within an business day.
For the Larger Business Loan ($100K to $500K) we could be able to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, turnaround times are 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 quickest method is to ensure you apply during standard business hours, and let us use the modern bank verification link to check your bank’s information online. If you choose to send us duplicates of your banking accounts, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we usually provide an answer within one hour – provided you make your application during standard business times and permit us to use the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statement, we’ll provide a decision in as little as one business day.
For Larger Business Loans ($100K up to $500,000) we may be able to provide you with a conditional pre-approval 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 can be faster depending on the circumstances of each application. Some offers have been approved within less than 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. You can also allow us to use our advance bank verification link to instantly verify your bank account information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a particular amount, we will consider a number of factors to determine what is the well-being that is your business and the level of repayments your company can support. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
If you apply for a particular amount, we take into consideration a variety of elements to assess your health for your company and the extent of the repayments your company is able to afford. The total amount of the loan will be determined by the specifics of your business.
Fees & repayments
How much do you charge for an company loan?
If you decide to apply for our company financing, we’ll assess the risk assessment the business 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 of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I pay?
Interest rates for business loans rates differ based on various factors including the amount borrowed, the business assets the funds will be used for and the sector the business is in, how long the company has been operating as well as how long the business has enough cash flow to fund the loan, and also the general well-being or financial standing of the business.
What are the fees?
There are no hidden costs for our company loans. You’ll know precisely how much you’ll need to pay, and when, right from the very first day. There’s no compounding and there are no additional charges (as long as you make your payments in 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 covers the costs associated in establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan early?
You can repay all of your loan at any point in time.
If you are deciding to take this route, please call our helpful company lending specialists. The professionals will provide you with the details of your repayment and an early payment figure. This is calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payment and 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work with your cash flow routine, we offer repayments either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and knowing the ways we gather, use, exchange and secure your information, is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to security for our clients and security. We make use of an advanced bank verification system to immediately verify the bank account details online, allowing us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from the assets they have to get the loan. The asset could be a personal asset like the family home or it could be a company asset such as a truck or other piece of machinery.
The vast majority of lenders, not just the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan, your assets could be taken over by the lender. In essence it’s a way of securing new financing taking advantage of the value of what you already have.
Do I need security for an business loan?
For loans up to $150,000 no asset security is required before you can access the money but we do require an individual guarantee. In the event that you fulfill the terms of your loan (as specified in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans of over $150K generally, there is an individual ensure and security in the form an asset charge.