FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Wolfdene Small Business Loans
Let me know more about Wolfdene Small Business Loans
Wolfdene unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from an ordinary business loan?
You can apply for the Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and the money could be available in just 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. This company loan is a cash-based loan therefore you’ll be aware of the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business use, including managing cash flows, business renovations, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Wolfdene Business Loans
What is the Larger Wolfdene Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to have been in operation for at least 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be used for?
A larger business loan can be used for almost any company need, including business remodeling, buying inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It is usually by taking a charge against assets and can include the registration of this through the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is generally based rather than defining security over an asset. The person signing the guarantee is personally liable in the event that 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 contains security interests which are registered with respect to personal property (including items or assets). The PPSR gives priority over personal property to be granted depending on the date that a security interest was registered.
Caveats are legal document that is filed to provide notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan of $250K or more we may be able to provide an initial pre-approval in order to simplify the process. We could be able to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial health questions. It is not an offer of credit or guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer that you may receive may be subject to different terms.
Application process
Do I qualify for funds?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for for the 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 simple and simple. Complete the online form in few minutes and a dedicated company expert in lending will call you to assist you.
To apply for up $100,000 you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statement and the last two years’ finalised financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer within one hour, provided you apply in standard business time and allow us to use the advanced bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statement, we’ll offer the decision in just the span of one business day.
For Larger Business Loans ($100K or more) we could be capable of provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Some agreements have been approved in the space of 24 hours.
The most efficient method for you to apply is ensure you apply during normal company hours, and let us use the advance bank verification to instantly confirm your bank details online. If you send us the copies of bank statement, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer within one hour, provided you make your application in standard business time and you allow us to use the bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statements we can offer a decision within the span of one business day.
For Larger Business Loans ($100K and up) we could be able to offer the conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some agreements have been approved within the space of 24 hours.
The most effective method can be make sure you apply during normal business hours and allow us to use the advanced bank verification system link to confirm your bank details online. If you opt to send us duplicates of your banking statements, it will take a little longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a specific amount we consider a variety of variables to determine the health for your company as well as the amount of repayments that your company can afford. The total amount of your loan will depend on the specifics of your business.
When you submit an application for a particular amount, we look at a range of factors to assess your well-being that is your company as well as the amount of payments your company can support. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How do you charge for an company loan?
When you request our company credit, we will assess the risk profile that you have for your business and provide you with a customised offer that includes the loan amount, the terms and the interest rates. This company loan is an upfront-priced loan and you’ll be aware of the total amount payable including any charges or interest.
What is the factor that determines the price I will be charged?
Business loan interest rates depend on several variables like the amount to be that is borrowed, what company assets the funds will be used for in addition to the industry that the business operates in, how long the company has been running, whether the business has enough cash flow to cover the loan, and general health and creditworthiness of the company.
What are the costs?
There are no hidden fees with our company loans, and you’ll know precisely what it is that you be required to pay and when, right from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You can get a cash loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan earlier?
You may choose to pay back all of your loan at any point in time.
If you choose to pursue this option, please call our helpful company loan experts. The specialists 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 any accrued interest at the time of the early payout plus 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss payment dates and to align your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and 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 make use of industry-standard encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to customer security and security. We use an advanced bank verification system to instantly verify the bank account details online. This allows us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner borrows from an asset that they own to secure the funding. The asset can be an individual asset, such as the family home or a company asset like a truck as well as a piece of machine.
The majority of lending institutions, not just the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan, then the asset might be offered for sale by the lender. In essence it’s means of securing new funding making use of the value of what you already have.
What do I require security to secure an company loan?
For loans of up to $150,000, no asset security is required in advance to gain access to the funds but we do require an individual guarantee. If you adhere to your loan obligations (as detailed in your loan contract document), asset security is not required. For loans over $150K typically, you will need a personal guarantee and security that is in the form a charge over assets.