FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The West Croydon Small Business Loans
Let me know what you think of the West Croydon Small Business Loans
West Croydon unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and funds may be in your account within 24 hours. Traditional business loans are based on an annual rate of interest plus other fees and charges. We offer a business loan is a loan that is priced upfront and you’ll be aware of the amount you will have to pay, 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?
The Small Business Loan can be used for virtually any business use, including managing cash flows, business remodels and marketing, to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal use.
About the Larger West Croydon Business Loans
What is the Larger West Croydon Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan of this size the company needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funds for?
A Larger Business Loan can be used to fund almost every company need, including business renovations, purchase of equipment or inventory or as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It is usually in the form of a charge over assets, and may include the registration of this in the PPSR or making a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally based rather than specifying security over a particular asset. The person who is signing the guarantee is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR gives priority over personal property to be granted according to the date the security interest was registered.
A caveat is a legal document that is filed to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250K it’s possible to offer a preliminary pre-approval to help ease the process. We may be able to apply for this without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial well-being questions. It’s in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you are offered could 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 at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Complete the online form within a few minutes and a dedicated business loan specialist will call you to help you.
To apply for up $100,000, you’ll need ID details (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we can often offer a response in one hour – as long as you make your application in standard company hours and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements , we’ll be able to offer the decision within just one business day.
For the Larger Business Loan ($100K or more) we may be capable of provide you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this can be quicker 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 make sure you apply during normal company hours. You can also allow us to use the advanced bank verification system to instantly check your bank’s information online. If you opt to send us copies of your bank statements it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour if you submit your request in standard business time and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements, we’ll be able to provide a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be likely to provide you with a conditional pre-approval within 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Certain transactions have received approval within less than 24 hours.
The quickest method can be make sure you apply during standard business hours and let us use the sophisticated bank verification link to instantly confirm your bank details online. If you send us the copies of bank statements, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount, we consider a variety of variables to determine the health of the company and the extent of the repayments your business can afford. The total amount of your loan will be contingent on the specific circumstances for your business.
When you submit an application for a specific amount we look at a range of variables to assess how much we can lend you such as health of your business and the level of repayments that your company is able to afford. The total amount of your loan will be determined by the particular circumstances the company.
Fees & repayments
How much should you charge for a company loan?
If you decide to apply for the business loan, we’ll assess the risk assessment of your business and provide you with a customised offer that includes the amount of loan, the term and interest rates. A company loan is an upfront priced loan so you will know the exact amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I am charged?
Business loan interest rates differ based on various variables like the amount to be of money borrowed, the business assets the money will be used for in addition to the industry that the company operates in, how long the company has been running for, in the event that the company has sufficient cash flow to pay for the loan, as well as the overall health and creditworthiness of the company.
What are the costs?
There are no hidden fees with our business loans, and you’ll know precisely how much it is that you need to pay and when, starting from the day you sign up. There’s no compounding and there are no additional charges (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to apply for a loan without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan early?
You can decide to repay the entire amount of your loan early at any time.
If you decide to pursue this option, please contact our helpful company lending experts. We will offer you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the principal balance and accrued interest to the time of the early payout in addition to 1.5 percent of the principal balance plus any outstanding fees.
How do you make repayments work?
To ensure you do not miss payments and to work with your cash flow standard, we offer repayments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We employ a highly sophisticated bank verification system that allows you to immediately verify the bank account details online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner utilises an asset they own to secure the funding. The asset can be a personal asset like the family home, or a business asset such as a truck or piece or equipment.
The majority of lending institutions, including the largest banks, are inclined to guarantee loans against an asset. If you’re struggling to pay back the loan, the asset might be transferred to the lender. In essence it’s the process of securing additional financing using the value of what you already have.
What do I need security to secure an company loan?
Up to $150K in loans it is not necessary to secure assets upfront to access the money but we do require an individual guarantee. As long as you follow the terms of your loan (as stated in the loan contract), asset security will never be needed. For loans that exceed $150,000, typically, you will need personal ensure and security is provided in the form of an asset charge.