FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Wynnum Small Business Loans
Tell me how you are able to avail the Wynnum Small Business Loans
Wynnum unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
Apply for the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and funds may be available in just 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. The company loan is an upfront priced loan so you will be aware in advance of the total amount due, which includes the interest, fees and charges. This is then broken down into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost any business reason, such as managing cash flows, company remodeling, marketing to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal use.
About Larger Wynnum Business Loans
What is the Larger Wynnum Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be operating for a minimum of 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can the funds be used for?
A Business Loan of a larger size can be used for nearly any company use, including business renovations, to purchase equipment or inventory or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s by taking a charge over assets and can include registration with the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to repay credit that is generally based rather than stipulating the security for a particular asset. The person who is signing the guarantee is personally responsible if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR allows the priority of personal property granted depending on the date that a registration of a security interest.
An affidavit is an official document lodged to provide an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of $250K or more we can offer an initial pre-approval in order to ease the process. We may be able to get this done without credit checks and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial health questions. This is not an offer of credit or guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you might receive could be based on 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 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for a 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 simple and easy. Complete the online form within a couple minutes, and an experienced company loan specialist will contact you to assist you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent and 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour if you make your application in standard business hours and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statement, we’ll provide a decision within just one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be capable of offer you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The quickest way to apply is to ensure you apply during normal business hours. You can also allow us to use the advance bank verification link to check your bank’s information online. If you choose to send us copies of your bank statement, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour – as long as you apply within normal business hours and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statements, we will be able to provide a decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of offer you with conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Certain deals have been approved in less than 24 hours.
The fastest method is to make sure you apply during standard business hours. Also, allow us to use our advanced bank verification system link to verify your bank information online. If you decide to upload copies of your bank statements it may take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of variables to determine your health for your company and the amount of the repayments your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances of your company.
When you make an application for a set amount, we consider a variety of factors to assess your health for your business and the amount of repayments that your company can support. The total amount of the loan will be determined by the particulars the company.
Fees & repayments
What is the cost for the cost of a business loan?
When you request our company financing, we will assess the risk assessment of your business and offer an individualised offer including the amount of loan, the term and the interest rates. It is a company loan is an upfront priced loan so you will know the exact amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I pay?
Business loan interest rates depend on several factors like the amount of money that is borrowed, what company assets the funds will be used for as well as the field the company operates in, how long the company has been operating, what percentage of the business has enough cash flow to support the loan, and also the general health and creditworthiness of the company.
What are the costs?
There are no hidden costs with our business loans. You’ll know precisely what it is that you be required to pay, and when, right from the first day. There’s not any compounding interest and no additional fees (as long as you make your payments punctually).
We don’t charge an application fee. You are able to make an application for loans with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You can repay the total amount of your loan at any point in time.
If you decide to do this please contact our helpful business loans specialists. They’ll offer you with details on repayment and an early payment figure. This is calculated as the sum of the principal balance and any accrued interest at the date of early payout plus 1.5 percent of the remaining principal plus any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align with your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about the ways we gather, use, exchange and protect your information, is of huge importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We make use of an advanced banking verification system to immediately confirm your bank account information online so we can offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the company owner utilises an asset they own to secure the funds for a loan. The asset may be an asset belonging to the personal, like the family home, or it could be a business asset such as a truck or piece or equipment.
The majority of the lenders including the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan, then the asset could be offered for sale by the lender. In essence it’s means of securing new financing by taking advantage of the value of what you already own.
Are I require security to get an company loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds but we require a personal guarantee. need a personal guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract document) Asset security will never be needed. For loans that exceed $150K, generally there is the option of a personal ensure and security in the form of charges on assets.