FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Woongoolba Small Business Loans
Tell me about the Woongoolba Small Business Loans
Woongoolba unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from an ordinary business loan?
You can apply to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. Our company loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business reason, such as the management of cash flow, business remodeling, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal purposes.
About larger Woongoolba Business Loans
What is the Larger Woongoolba Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to be in operation for at least 3 years with an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan can be used for nearly every business reason, such as business improvements, purchasing equipment or inventory, as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It is usually as a result of an charge against assets, and may include registration on the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR allows the priority of personal property assigned according to the date a registration of a security interest.
An affidavit is an official form of document to offer the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger company loans that is greater than $250K we can offer an initial pre-approval in order to ease the process. We might be able to get this done without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial health checks. This is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer that you may receive may be based on different conditions.
Application process
Are I eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (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 application process is fast and easy. Complete the online form within a couple minutes, and an experienced company loan specialist will contact you to guide you through the process.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 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, 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables reports.
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 an hour, provided you make your application during standard company hours and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements , we are able to provide the decision within one company day.
For the Larger Business Loan ($100K to $500K) we may be capable of offer you with conditional pre-approval within six hours. After you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Certain deals have been approved within 24 hours.
The quickest way to apply can be make sure you apply during standard company hours and allow us to use the advance bank verification link to instantly verify your bank account information online. If you decide to send us duplicates of your banking statements it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour – as long as you submit your request at standard business timings and permit us to use the bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statements, we are able to offer a decision in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of offer you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved in less than 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. Also, allow us to use the sophisticated bank verification to confirm your bank details online. If you choose to send us the copies of bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a particular amount, we take into consideration a range of aspects for determining what is the health of your company and the amount of payments your business will be able to support. The amount you receive from your loan will be contingent on the specifics of your business.
If you apply for a particular amount, we will consider a number of factors to assess the health of your company and the extent of the repayments your company can afford. The total amount of your loan will be determined by the particular circumstances for your business.
Fees & repayments
How do you charge for an company loan?
When you make an application for business loans with us company loan, we’ll assess the risk assessment that you have for your company and offer you with a tailored offer, including loan amount, term and interest rates. A company loan is an upfront priced loan and you’ll know in advance the total amount to be paid, including any charges or interest.
What determines the amount I will be charged?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, the business assets the money are used to purchase and the sector the business is operating in, how long the business has been running and what percentage of the company has enough cash flow to fund the loan, and the overall health or creditworthiness of the business.
What are the costs?
There aren’t any hidden charges with our business loans. You’ll know exactly how much you need to pay, and when, right from the first day. There’s no compounding and no additional fees (as long as you make your payments punctually).
We do not charge an application fee. You are able to get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan in advance?
You can decide to repay the total amount of your advance loan at any time.
If you do decide to pursue this option, please speak to our friendly business lending experts. They’ll provide you with details for repayment along with an early payout estimate. This will be calculated as the sum of the principal remaining plus any accrued interest as of the time of the early payout in addition to 1.5% of the principal amount remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing how we collect data, process, exchange and secure your information, is crucial and a vital 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 certified for our commitment to security for our clients and security. We make use of an advanced bank verification system link to immediately confirm your bank account information online, allowing us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner makes use of the assets they have to obtain the loan. The asset could be an individual asset, such as the family home or a company asset like a truck or piece or equipment.
The vast majority of the lenders not just the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then your asset may be transferred to the lender. In essence, it’s means of securing new funding using the worth of the asset you already own.
What do I need security to get a company loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access, however we require a personal guarantee. need a personal guarantee. So long as you comply with your loan obligations (as detailed in the loan contract) Asset security will never be required. For loans over $150K generally there is the option of a personal ensure and security in the form of an asset charge.