FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Woolloongabba Small Business Loans
Let me know how you can avail the Woolloongabba Small Business Loans
Woolloongabba unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional company loan?
The application to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and the money could be in your account within 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. The business loan is a loan that is priced upfront so you will know ahead of time the total amount due, which includes any fees, interest or charges. This is then broken down into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business purpose including managing cash flows, business improvements, advertising, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Woolloongabba Business Loans
What is the Larger Woolloongabba Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion 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 your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to be in operation for at least 3 years and generate an annual revenue of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be used for?
A Business Loan of a larger size can be used to fund almost all business purpose including business renovations, to purchase inventory or new equipment for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually as a result of an charge over assets and can include registering this through the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature rather than stating security over an asset. The person signing the ensure is personally liable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
The caveat can be described as a formal form of document to provide the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan that exceeds $250K we may be able to provide an initial pre-approval to smooth out the process. It is possible to apply for this without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial well-being checks. It’s in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer you receive could be based on different conditions.
Application process
Can I be eligible for funding?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a few minutes and a dedicated company lending specialist will contact you to guide you through the process.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we typically provide a response in one hour if you apply during quality business time and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statement, we’ll provide the decision within the span of one business day.
For Larger Business Loans ($100K up to $500,000) we might be likely to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval in less than 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard company hours. You can also allow us to use our advance bank verification link to instantly check your bank’s information online. If you opt to send us the copies of bank statements , it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within an hour – provided you submit your request during normal business timings and you allow us to use the bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll offer an answer in just an business day.
If you are applying for Larger Business Loans ($100K and up) we may be capable of offer the conditional pre-approval in around six hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Some agreements have been approved within less than 24 hours.
The fastest way is to make sure you apply during normal business hours and allow us to use our sophisticated bank verification link to verify your bank account information online. If you decide to send us copies of your bank statements it can take a bit 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 particular amount, we will consider a number of elements for determining what is the well-being of your business as well as the amount of repayments that your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your business.
If you apply for a specific amount we consider a variety of aspects to determine how much we can lend you such as well-being for your company and the amount of repayments your business is able to afford. The amount you receive from the loan will be determined by the particular circumstances of your business.
Fees & repayments
How much do you charge for an company loan?
When you request the business credit, we’ll assess the risk profile of your company and provide you with a customised offer including loan amount, term and interest rates. It is a business loan is a loan that is priced upfront and you’ll know in advance the total amount due, which includes any interest rates, fees or charges.
What determines the amount I will be charged?
Business loan interest rates differ based on various factors such as the amount that is that is borrowed, what company assets the money are used to purchase and the sector the business operates in, how long the company has been operating, how long the business has sufficient cash flow to fund the loan, and the general well-being as well as creditworthiness business.
What are the fees?
There are no hidden fees with our business loans. You’ll be aware of the amount you need to pay, and when, from the first day. There’s not any compounding interest and no extra fees (as as you make your payments on time).
We do not charge an Application Fee. You can make an application for loans with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of the loan at any point in time.
If you choose to do this please talk to one of our helpful company lending experts. We will provide you with the details of your repayment as well as an early payout amount. This is calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payment in addition to 1.5% of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To ensure you do not miss due dates and also to be in line your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather, use, exchange and ensure the security of your information is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We use an advanced bank verification system link to immediately verify the bank account details online to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from an asset that they own to secure the funds for a loan. The asset can be either an individual asset, such as the family home, or it could be a business property like a truck or piece or equipment.
The vast majority of lending institutions, even the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then the asset could be sold by the lender. In essence, it is means of securing new financing using the value of what you already have.
Do I need security to get an company loan?
For loans of up to $150,000, no asset security is required in advance to gain access to the funds, however we do need a personal guarantee. If you adhere to the terms of your loan (as stipulated in the loan contract), asset security will never be needed. For loans over $150,000 generally, there is the option of a personal guarantee and security in the form of charges on assets.