FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Wynnum West Small Business Loans
Let me know about the Wynnum West Small Business Loans
Wynnum West unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from a traditional business loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and funds may be in your account within 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. This business loan is an upfront priced loan therefore you’ll know ahead of time the total amount due, which includes any fees, charges or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every business use, including cash flow management, business improvements, advertising to purchase inventory, new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Wynnum West Business Loans
What is the Larger Wynnum West Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your business needs to be trading for at least 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funds be used for?
A large company loan can be used for nearly any company need, including company remodeling, buying new equipment or inventory for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It’s as a result of an charge on assets, and could include the registration of this in the PPSR or filing as a caveat.
A personal or director’s guarantee is a promise to repay a loan which is generally in nature rather than specifying the security for a particular asset. The person who signs the guarantee is personally responsible if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
Caveats are legal document that is filed to provide notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval to simplify the process. It is possible to do this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health checks. It is neither an offer nor a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be based on different conditions.
Application process
Do I have the right to receive funds?
You may be eligible 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)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a few minutes and a dedicated company loan specialist will be in touch to help you.
For a loan of up to $100,000 you’ll require ID details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we usually offer an answer within an hour, provided you submit your request in quality business hours and permit us to utilise the bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements , we are able to offer the decision in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be capable of offer you with pre-approval conditional to your application within 6 hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some deals have been approved within just 24 hours.
The fastest way is to make sure you apply during standard business hours and allow us to use the advanced bank verification system to instantly check your bank’s information online. If you choose to upload documents from your account statement, it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we typically offer an answer within one hour – as long as you apply in standard business 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’ll be able to offer the decision in as little as an business day.
For Larger Business Loans ($100K and up) we may be in a position to provide you with a conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some transactions have received approval in 24 hours.
The quickest method would be to make sure you apply during normal business hours and permit us to use the sophisticated bank verification to instantly verify your bank information online. If you opt to upload duplicates of your banking accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a certain amount we take into consideration a range of elements in order to assess your well-being that is your business and the level of repayments your business will be able to support. The amount you receive from your loan will depend on the specifics that are unique to your company.
When you submit an application for a specific amount we consider a variety of elements to assess your well-being that is your business and the level of the repayments your company can afford. The amount you receive from your loan will depend on the particular circumstances of your company.
Fees & repayments
What is the cost for the cost of a company loan?
When you apply for our business financing, we will assess the risk profile for your business and provide you with a tailored offer that includes loan amount, term and interest rates. A business loan is an upfront-priced loan which means you be aware in advance of the total amount payable including any interest rates, fees or charges.
What determines the rate that I am charged?
Interest rates for company loans rates differ based on various variables like the amount to be of money borrowed, the business assets the funds are used to purchase, the industry the company is operating in, how long the business has been running as well as in the event that the business has enough cash flow to pay for the loan, and also the overall health or financial standing of the business.
What are the cost?
There aren’t any hidden costs for our company loans, and you’ll know precisely how much you need to pay, and when, right from the very first day. There’s not any compounding interest and there are no additional charges (as as you make your payments punctually).
We don’t charge an Application Fee. You are able to make an application for loans without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful business loans specialists. They will provide you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the remaining principal amount plus any accrued interest as of the date of early payout in addition to 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing the ways we gather data, process, exchange and secure your information, is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We utilise a sophisticated bank verification system to instantly confirm your bank account information online to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner uses an asset they own to obtain a loan. The asset can be an asset belonging to the personal, like the family home or an company asset like a truck or piece or equipment.
The majority of lenders, not just the largest banks, are inclined to guarantee loans against an asset. If you’re struggling to pay back the loan then your assets could be offered for sale by the lender. In essence it is a way of securing additional financing using the worth of the asset you already have.
What do I require security to secure a business loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. So long as you comply with your loan obligations (as specified in the loan contract) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150,000 generally there is personal guarantee and security that is in the form an asset charge.