FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Woodville South Small Business Loans
Let me know what you think of the Woodville South Small Business Loans
Woodville South unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
The application for your Small Business Loan in under 10 minutes on the internet or over the phone, receive an instant response and have the funds in your account in 24 hours. Traditional business loans reference an interest rate per annum along with other charges and fees. We offer a business loan is a cash-based loan and you’ll know in advance the total amount to be paid, including any fees, charges or charges. Then, it is 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 virtually any business purpose including cash flow management, company renovations, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Woodville South Business Loans
What is the Larger Woodville South Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to be operating for a minimum of 3 years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can the funds be used for?
A Business Loan of a larger size can be used for nearly all company purpose including business improvements, purchasing new equipment or inventory for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It’s by way of charge on assets, and could include the registration of this through the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is general in nature, rather than defining the security of a specific asset. The person who signs the ensure is personally liable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date the security interest was registered.
A caveat is a legal form of document to provide the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan that is greater than $250K it’s possible to offer an initial pre-approval in order to ease the process. We may be able to get this done without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering some financial well-being questions. It’s not an offer or guarantee of funds. A conditional approval is subject a full credit assessment and any offer you are offered could be based on different conditions.
The application process
Are I eligible for funding?
You may apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a couple minutes, and a dedicated business loan specialist will be in touch to help you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank records, IRD statements and the last two years’ finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we can often offer an answer within an hour – as long as you make your application during standard business time and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements we can offer an answer in 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 in about six hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Some deals have been approved in 24 hours.
The quickest way to apply can be make sure you apply during normal company hours, and allow us to use the modern bank verification link to instantly confirm your bank details online. If you choose to send us duplicates of your banking statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) We can usually offer an answer in just one hour – as long as you apply within standard business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statements, we are able to provide the decision in just 1 business day.
For Larger Business Loans ($100K and up) We may be able to offer you with conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain offers have been approved within the space of 24 hours.
The fastest method would be to make sure you apply during normal business hours. Also, allow us to use the advanced bank verification system to verify your bank account information online. If you choose to send us copies of your bank statements it will take a little longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount we look at a variety of factors in order to assess how much we can lend you well-being of the business and the level of repayments your company can support. The amount you receive from the loan will be determined by the particular circumstances that are unique to your company.
When you make an application for a specific amount we will consider a number of elements to assess your well-being of the company as well as the amount of repayments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
Fees & repayments
How do you charge for a company loan?
If you decide to apply for the company loans, we’ll assess the risk assessment of your company and provide you with a tailored offer that includes loan amount, term and the interest rates. It is a company loan is an upfront-priced loan therefore you will know the exact amount payable including any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
Business loan interest rates depend on several factors including the amount borrowed, the company assets the money will be used for and the sector the business is operating in, how long the company has been operating, in the event that the business has sufficient cash flow to pay for the loan, and also the general health or financial standing of the company.
What are the charges?
There aren’t any hidden costs with our business loans, and you’ll know precisely how much it is that you need to pay and when, from the first day. There’s no compounding interest, and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You can get a cash loan with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan early?
You can choose to repay the entire amount of the loan in full at any time.
If you choose to do this please contact our helpful business loan specialists. They’ll offer you with details for repayment along with an early payout estimate. This will be calculated as the sum of the remaining principal amount and accrued interest to the time of the early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear how we collect information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our clients and security. We use an advanced banking verification system to instantly verify your bank account details online so we can provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the business owner makes use of an asset they own to make a loan. The asset may be an asset belonging to the personal, like the family home, or a company asset like a truck as well as a piece of machine.
The vast majority of lending institutions, including the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan then the asset could be offered for sale by the lender. In essence, it’s the process of securing new funding taking advantage of the value of what you already have.
Do I require security to get an company loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access however, we do require an individual guarantee. If you adhere to your loan obligations (as specified in your loan contract) Asset security is not required. If you take out loans in excess of $150,000 generally, you are able to get personal ensure and security in the form an asset charge.