FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Wooloowin Small Business Loans
Let me know more about Wooloowin Small Business Loans
Wooloowin unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from the traditional company loan?
The application for this Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the money could be in your account in 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. We offer a company loan is a cash-based loan which means you be aware in advance of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into a daily or weekly payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company use, including the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Wooloowin Business Loans
What is the Larger Wooloowin Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to have been trading for at least 3 years and generate an annual revenue of $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 demonstrate at the least 12 months of operating.
What can the funds be used for?
A large business loan can be used to fund almost all company purpose including company improvements, purchasing inventory or new equipment, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. It is usually as a result of an charge on assets, and may include registering this through the PPSR or filing a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally based rather than specifying the security for a particular asset. The person signing the ensure is personally responsible if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be assigned according to the date a security interest that is registered.
Caveats are legal document that is filed to provide an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan of more than $250K, we may offer an initial pre-approval that will help smooth out the process. We could be able to get this done without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial well-being checks. It’s not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you might receive could have different terms.
The application process
Do I qualify for funds?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in few minutes and an experienced business credit specialist will contact you to guide you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) and a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour, provided you apply in quality company timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements we can provide the decision within just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we may be able to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Some agreements have been approved in just 24 hours.
The fastest way is to ensure you apply during standard company hours. Also, permit us to use the modern bank verification to instantly check your bank’s information online. If you decide to upload copies of your bank accounts, it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer within one hour if you make your application during normal business timings and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll provide the decision in just one business day.
If you are applying for Larger Business Loans ($100K and up) we may be likely to offer the conditional pre-approval within six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Some agreements have been approved in 24 hours.
The most effective method is to make sure you apply during normal business hours, and allow us to use the advanced bank verification system link to check your bank’s information online. If you choose to upload duplicates of your banking statements it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a specific amount we will consider a number of elements for determining what is the health that is your company as well as the amount of the repayments your company can afford. The amount you receive from your loan will be contingent on the particular circumstances the company.
If you apply for a particular amount, we will consider a number of aspects to determine the well-being for your business and the amount of repayments that your business will be able to support. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
Fees & repayments
What is the cost for a business loan?
If you decide to request the company loan, we will assess the risk profile of your company and offer you with a customised offer, including loan amount, term and the interest rates. It is a company loan is an upfront-priced loan and you’ll know in advance the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I am charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, the company assets the funds will be used for and the sector the business operates in, the long the company has been in operation for, whether the business has enough cash flow to cover the loan, as well as the general health or financial standing of the business.
What are the cost?
There are no hidden fees for our company loans, and you’ll know exactly how much it is that you be required to pay and when, from the first day. There’s not any compounding interest and no extra fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to make an application for loans with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay off the loan in advance?
You may choose to pay back all of your advance loan at any time.
If you are deciding to do this please contact our helpful business loan professionals. The professionals will provide you with details for repayment as well as an early payout amount. This will be calculated as the total of the principal amount remaining and the accrued interest up to the time of the early payout, plus 1.5% of the principal amount remaining plus any outstanding fees.
How do repayments work?
To help you avoid missing payments and to work with your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing the ways we gather the information we collect, use, share and safeguard your data, is vital and a vital element 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 sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated banking verification system to immediately confirm your bank account information online, allowing us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the company owner borrows from an asset they own to secure the funding. The asset could be a personal asset like the family home or a business asset such as a vehicle or piece of equipment.
The majority of lenders, even the big banks, tend to guarantee loans against assets. If you’re having trouble paying back the loan, then your assets could be offered for sale by the lender. In essence, it’s a way of securing new financing by using the value of what you already own.
What do I need security to secure an company loan?
Up to $150,000 in loans no asset security is required in advance to gain access to the funds, however we require a personal guarantee. require a personal guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract) Asset security will never be required. For loans that exceed $150K, generally, there is personal guarantee and security is provided in the form of a charge over assets.