FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Welland Small Business Loans
Let me know how you can avail the Welland Small Business Loans
Welland unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from an ordinary business loan?
The application to this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and funds may be in your account within 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. The business loan is an upfront priced loan which means you know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business need, such as managing cash flows, business renovations, marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
About larger Welland Business Loans
What is the Larger Welland Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit of this size, your business needs to have been trading for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost all company purpose including company renovations, to purchase equipment or inventory for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It’s by way of charge against assets, and may include the registration of this with the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR allows the priority of personal property assigned according to the date the security interest was registered.
An affidavit is an official document 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 applying for an enterprise loan of $250K or more we can offer an initial pre-approval to ease the process. It is possible to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial well-being questions. It’s not an offer or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer you may receive may be on different terms.
Application process
Do I have the right to receive funds?
You can apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Complete the online form in just a few minutes, and a dedicated business credit specialist will call you to guide you through the process.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent and 12 months of bank statements, IRD statement, last 2 years finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) We can usually provide a response in one hour, provided you apply during quality company timings and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you choose to send us copies of your bank statements we can offer a decision within just one company day.
For the Larger Business Loan ($100K up to $500,000) we could be in a position to offer you with a conditional pre-approval in about six hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours, and let us use the modern bank verification to instantly check your bank’s information online. If you choose to upload the copies of bank statements it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we usually offer a response in one hour – provided you apply in standard business timings and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements, we will be able to offer the decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of offer the conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved within 24 hours.
The fastest method would be to ensure you apply during normal business hours and allow us to use the modern bank verification to instantly check your bank’s information online. If you opt to send us the copies of bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a specific amount we look at a variety of aspects to determine how much we can lend you health for your company and the amount of the repayments your company is able to afford. The amount you receive from the loan will be determined by the specifics the business.
When you submit an application for a set amount, we consider a variety of elements to determine your well-being that is your company and the level of repayments your company can afford. The total amount of the loan will be determined by the specific circumstances for your company.
Fees & repayments
How much do you charge for a company loan?
If you decide to make an application for the company loan, we’ll assess the risk assessment the company and provide you with a tailored offer that includes the amount of loan, the term and the interest rates. A company loan is a loan that is priced upfront therefore you will know the exact amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I’m charged?
Interest rates for business loans rates depend on a variety of factors like the amount of money borrowed, the company assets the funds will be used for and the sector the business operates in, how long the business has been running as well as what percentage of the business has sufficient cash flow to pay for the loan, as well as the general well-being as well as creditworthiness company.
What are the costs?
There aren’t any hidden costs with our company loans. You’ll be aware of the amount you be required to pay and when, right from day one. There’s no compounding interest, and the loan comes with no additional fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You are able to request a credit loan no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I repay the loan in advance?
You can choose to repay the entire amount of your advance loan at any time.
If you do decide to pursue this option, please contact our helpful business loans professionals. The professionals will provide you with repayment details and an early payout figure. This is calculated as the total of the principal remaining plus any accrued interest as of the time of early payout in addition to 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather the information we collect, use, share and secure your information, is vital and is an essential 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 secure your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system link to immediately verify your bank account details online to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a business owner makes use of assets they own to make the funding. The asset may be a personal asset like the family home or it could be a company asset such as a vehicle or piece or equipment.
The majority of lenders, not just the big banks, tend to make loans secured by 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’s a way of securing new financing by using the worth of the asset you already own.
Should I need security to get an company loan?
Up to $150K in loans it is not necessary to secure assets upfront to access the money but we do require a personal guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150,000, generally, there is the option of a personal guarantee and security is provided in the form of the charge of assets.