FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Woody Point Small Business Loans
Let me know how you can avail the Woody Point Small Business Loans
Woody Point unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an traditional business loan?
You can apply to get 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 business loans are based on an annual interest rate along with other charges and fees. Our company loan is a pre-paid loan and you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into either a daily or weekly installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost any company use, including cash flow management, business improvements, advertising for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available to fund personal expenses.
About Larger Woody Point Business Loans
What is the Larger Woody Point Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the business needs to have been in operation for at least 3 years, and have an annual income of $700,000. You must be 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 to prove at minimum 12 months of business.
What can I use the funding for?
A Larger Business Loan can be used for nearly any company purpose including company improvements, purchasing equipment or inventory as well as for 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 needed for accessing funds over $150,000. It’s by way of charge against assets, and could include the registration of this with the PPSR or the registration of a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally in nature rather than stating the security of a specific asset. The person signing the ensure is personally responsible if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR allows priority over personal property to be granted according to the date the registration of a security interest.
A caveat is a legal form of document to offer an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval in order to simplify the process. It is possible to apply for this without a credit check and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial health checks. This is not an offer or guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you may receive may have different terms.
Application process
Do I have the right to receive funds?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form in just a few minutes, and a dedicated business loan specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within one hour if you submit your request during quality business times and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements , we’ll be able to offer an answer within just the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely to offer you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Some transactions have received approval in just 24 hours.
The quickest way to apply is to ensure you apply during normal company hours, and allow us to use our advance bank verification to verify your bank account information online. If you choose to upload the copies of bank statements , it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour if you submit your request at standard business times and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll offer the decision in as little as 1 business day.
For Larger Business Loans ($100K and up) we may be in a position to offer you with a conditional pre-approval in about 6 hours. After you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Some deals have been approved in less than 24 hours.
The most effective method for you to apply is ensure you apply during standard business hours and allow us to use our advanced bank verification system link to verify your bank account information online. If you decide to upload documents from your account statements, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a certain amount we consider a variety of aspects to determine the well-being that is your business as well as the amount of repayments your company will be able to support. The total amount of the loan will be determined by the specifics for your business.
When you make an application for a specific amount we consider a variety of elements to assess your well-being of the company as well as the amount of repayments that your business can afford. The total amount of your loan will be determined by the specific circumstances the business.
Fees & repayments
How much do you charge for a company loan?
When you request our business loan, we will assess the risk assessment of your business and provide you with a tailored proposal that includes loan amount, term and the interest rates. It is a business loan is an upfront cost loan therefore you will be aware in advance of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates depend on a variety of variables like the amount to be borrowed, what company assets the funds will be used for, the industry the business operates in, how long the business has been in operation for, whether the business has sufficient cash flow to fund the loan, and overall well-being or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll know exactly how much it is that you need to pay and at what time, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We don’t charge an Application Fee. You are able to apply for a loan with without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You may choose to pay back the entire amount of the loan early at any time.
If you do decide to take this route, please call our helpful company credit professionals. The experts will offer you with details on repayment and an early payout figure. This is calculated as the total of the principal amount remaining and accrued interest to the date of early payout, plus 1.5% of the principal amount remaining and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about how we collect information, use it, and exchange it, as well as safeguard your data, is crucial and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to security for our customers and security. We make use of an advanced banking verification system to immediately verify your bank account details online, allowing us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an company owner borrows from an asset that they own to get the loan. The asset could be an asset belonging to the personal, like the family home, or it could be a company asset such as a truck or piece of equipment.
The vast majority of the lenders including the banks with the biggest size, prefer to secure loans against assets. If you’re having trouble paying back the loan, the asset might be taken over by the lender. In essence, it is a way of securing additional financing making use of the value of what you already have.
Should I require security to get a business loan?
For loans of up to $150,000, no asset security is required prior to the loan’s access however, we do need a personal guarantee. If you adhere to the terms of your loan (as stipulated in the loan contract) the security of assets is not required. For loans that exceed $150,000, typically, you will need an individual guarantee and security is provided in the form of an asset charge.