FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Woodridge Small Business Loans
Let me know how you are able to avail the Woodridge Small Business Loans
Woodridge unsecured loans provides amounts 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.
What is the Unsecured Loan different from a traditional company loan?
You can apply to this Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and the money could be on your account within 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. This company loan is an upfront priced loan therefore you’ll know in advance the total amount to be paid, including any fees, interest or charges. This is then divided into a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company reason, such as managing cash flows, company renovations, marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal purposes.
About Larger Woodridge Business Loans
What is the Larger Woodridge Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
The 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 qualify for a loan that is this large the company needs to be operating for at least three years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have 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 larger business loan can be used for nearly every company purpose including company renovations, purchase of new equipment or inventory as well as for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. It’s in the form of a charge over assets, and may include the registration of this in the PPSR or registering as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR grants preference over private property granted according to the date a security interest that is registered.
A caveat is a legal document lodged to offer the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger business loans that exceeds $250K we can offer an initial pre-approval in order to smooth out the process. It is possible to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial health checks. This is not an offer of credit or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you may receive may have different terms.
Application process
Do I have the right to receive funds?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application in few minutes and an experienced business lending specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll require 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 need:
$100K to $250K: Application requirements, including credit approval, 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 twelve months of bank statements, IRD statement Last 2 years’ finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we can often offer an answer in just one hour if you submit your request during standard company hours and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your banking statements we can provide an answer in just an business day.
For the Larger Business Loan ($100K or more) we could be capable of offer you with conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain offers have been approved in 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours. You can also permit us to use the advance bank verification link to verify your bank account information online. If you decide to upload copies of your bank accounts, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we can often provide an answer in just one hour if you make your application in normal business times and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statement, we’ll provide a decision within an business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be in a position to provide you with a conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Some agreements have been approved within less than 24 hours.
The quickest method can be make sure you apply during normal business hours and permit us to use the advance bank verification link to instantly confirm your bank details online. If you upload duplicates of your banking statements it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a certain amount, we consider a variety of factors to determine your well-being of your company as well as the amount of the repayments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances of your business.
If you apply for a specific amount we consider a variety of factors to assess the well-being for your business as well as the amount of repayments that your company can afford. The amount you receive from your loan will be determined by the particular circumstances for your company.
Fees & repayments
What is the cost for the cost of a business loan?
When you request the business financing, we’ll assess the risk assessment the company and provide you with a customised offer including the amount of the loan, the duration and interest rates. This business loan is an upfront cost loan and you’ll know the exact amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
Interest rates for business loans rates vary due to factors like the amount of money of money borrowed, the business assets the funds will be used for in addition to the industry that the company operates in, the long the company is in operation for, what percentage of the business has sufficient cash flow to cover the loan, and also the general health or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our company loans, and you’ll know precisely what it is that you need to pay, and when, right from day one. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an application fee. You can apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You can decide to repay the entire amount of your loan in full at any time.
If you choose to pursue this option, please talk to one of our helpful company lending specialists. They’ll provide you with details on repayment and an early payment figure. It will be calculated using the sum of the principal amount remaining plus any accrued interest as of the date of early payout and 1.5% of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing how we collect the information we collect, use, share and protect your information, is of huge importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to security for our clients and security. We make use of an advanced bank verification system to immediately verify the bank account details online to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of an asset they own to make a loan. The asset may be a personal asset like the family home or it could be a company asset such as a truck or piece or equipment.
The vast majority of lenders, even the largest banks, are inclined to secure loans against an asset. If you’re struggling to pay back the loan then the asset might be offered for sale by the lender. In essence it’s a way of securing new financing by making use of the value of what you already own.
Are I require security for an business loan?
For loans of up to $150,000, the requirement for asset security is not required upfront to access the money but we do need a personal guarantee. In the event that you fulfill the terms of your loan (as stated in your loan contract document) Asset security is not needed. For loans that exceed $150K, generally there is an individual guarantee and security is provided in the form of a charge over assets.