FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wulkuraka Small Business Loans
Tell me about the Wulkuraka Small Business Loans
Wulkuraka unsecured loans provides amounts 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 the Unsecured Loan different from the traditional business loan?
You can apply to the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and have the funds available in just 24 hours. Traditional company loans have an annual interest rate together with additional fees and charges. The company loan is a pre-paid loan and you’ll be aware in advance of the total amount payable including any interest, fees or charges. This is then broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company reason, such as control of cash flow business remodels and marketing to purchase inventory, new equipment, for general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Wulkuraka Business Loans
What is the Larger Wulkuraka Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been in operation for at least 3 years and generate an annual revenue of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size is a great option for almost all business reason, such as business improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It is usually in the form of a charge against assets and can include registration in the PPSR or the registration of a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature, rather than defining the security for a particular asset. The person signing the ensure is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR allows preference over private property granted according to the date a security interest was registered.
A caveat is a legal document that is filed to provide the legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan that is greater than $250K it is possible to offer an initial pre-approval in order to make the process. We might be able to do this without a credit check and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes you answering some financial health questions. It is not an offer of credit or guarantee of financing. Acceptance without condition is subject to a full credit assessment and any offer that you receive could be based on 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, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in just a few minutes, and a dedicated business lending specialist will be in touch to guide you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent twelve months of bank statements, IRD statements, last 2 years finalised financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we typically offer a response in one hour if you submit your request at quality business hours and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statement, we’ll offer an answer within just the span of one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be able to offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some offers have been approved within the space of 24 hours.
The most effective method for you to apply is ensure you apply during standard company hours, and allow us to use the modern bank verification link to instantly check your bank’s information online. If you choose to send us documents from your account accounts, it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour – as long as you make your application within normal business timings and allow us to use the bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statements, we are able to offer the decision in as little as one business day.
For the Larger Business Loans ($100K or more) we may be capable of provide you with pre-approval conditional to your application within about 6 hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain offers have been approved in less than 24 hours.
The fastest method would be to ensure you apply during normal business hours. Also, allow us to use the sophisticated bank verification to instantly verify your bank account information online. If you decide to upload the copies of bank statements it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a specific amount we consider a variety of factors for determining your health of the company as well as the amount of the repayments your company is able to afford. The amount you receive from your loan will depend on the specific circumstances of your business.
If you apply for a certain amount, we will consider a number of aspects to assess your well-being of your business and the level of repayments that your company can support. The amount you receive from your loan will depend on the specific circumstances of your company.
Fees & repayments
How much should you charge for a business loan?
If you decide to request our business credit, we will assess the risk assessment the company and provide you with a customised offer that includes the loan amount, the terms and the interest rates. A company loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
The interest rates on business loans rates depend on several factors such as the amount that is borrowed, what company assets the funds are used to purchase and the sector the business is operating in, how long the business has been running, what percentage of the company has sufficient cash flow to cover the loan, and the general well-being as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll know precisely how much it is that you need to pay, and at what time, from day one. There’s no compounding and there are no additional charges (as long as you make your payments punctually).
We do not charge an application fee. You can request a credit loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I repay the loan early?
You may choose to pay back the entire amount of your loan at any point in time.
If you are deciding to pursue this option, please contact our helpful company credit professionals. They will offer you with the details of your repayment as well as an early payout amount. It will be calculated using the total of the principal balance and accrued interest to the time of the early payout plus 1.5% of the principal remaining plus any outstanding fees.
How do you make repayments work?
To ensure you do not miss payments and to work with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about how we collect information, use it, and exchange it, as well as secure your information, is of huge importance and is a crucial element 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 personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We use an advanced bank verification system to instantly verify your bank account information online to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner utilises the assets they have to obtain the funds for a loan. The asset can be either a personal asset like the family home or a company asset such as a vehicle or piece of equipment.
The vast majority of lending institutions, including the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan then the asset might be offered for sale by the lender. In essence, it is an opportunity to secure additional financing using the worth of the asset you already own.
What do I need security to secure a company loan?
Up to $150K in loans the requirement for asset security is not required before you are able to access the money however, we do need an individual guarantee. In the event that you fulfill your loan commitments (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150,000, generally there is the option of a personal ensure and security that is in the form the charge of assets.