FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Waterways Small Business Loans
Tell me how you can avail the Waterways Small Business Loans
Waterways unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get a same day response and funds may be available in just 24 hours. Traditional company loans are based on an annual interest rate plus other fees and charges. This company loan is a cash-based loan therefore you’ll be aware of the total amount due, which includes the interest, fees and charges. This is then broken down into either weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company purpose including control of cash flow business renovations, marketing, to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal purposes.
About larger Waterways Business Loans
What is the Larger Waterways Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be used for?
A Larger Business Loan is a great option for almost any business purpose including business improvements, purchasing equipment or inventory, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It is usually by way of charge over assets, and could include registering this through the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature, rather than stating the security of a specific asset. The person who is signing the ensure is personally responsible if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR gives priority over personal property to be granted in accordance with the date on which a security interest has been registered.
Caveats are legal document lodged to offer an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan that exceeds $250K it is possible to offer an initial pre-approval that will help make the process. It is possible to get this done without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial health checks. This is neither an offer nor a guarantee of financing. Acceptance without condition is subject to a full credit assessment and any offer you may receive may be based on different conditions.
Application process
Can I be eligible for funding?
You are eligible to apply for a 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)
- must show at least six months of trading (for the unsecured loan $5K – $100K) or 3 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 few minutes and an experienced company lending specialist will contact you to guide you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent twelve month bank accounts, the IRD statements, last 2 years finalised financial statements, and interim current financial year financials as well as Aged Payables and Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we usually offer an answer within one hour – as long as you submit your request at standard company timings and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statement, we’ll offer an answer in just an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be able to provide the conditional pre-approval in about six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Certain deals have been approved within the space of 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours and permit us to use the modern bank verification link to verify your bank account information online. If you decide to send us documents from your account statements it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we typically offer an answer within an hour, provided you apply within standard business times and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements, we’ll be able to offer an answer in just an business day.
For the Larger Business Loans ($100K to $500K) we may be likely to provide you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some transactions have received approval in less than 24 hours.
The most effective method can be ensure you apply during standard business hours. You can also allow us to use the modern bank verification to confirm your bank details online. If you choose to upload documents from your account statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a certain amount, we look at a variety of factors to determine how much we can lend you health of the business as well as the amount of repayments your company is able to afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your business.
When you submit an application for a certain amount, we take into consideration a variety of factors to determine the health of the company as well as the amount of repayments your company will be able to support. The amount you receive from your loan will be determined by the particulars that are unique to your business.
Fees & repayments
What is the cost for the cost of a business loan?
When you make an application for business loans with us business credit, we will assess the risk profile of your business and offer you with a customised proposal that includes the loan amount, the terms and interest rates. A company loan is an upfront cost loan so you will be aware in advance of the total amount due, which includes any charges or interest.
What is the basis for the rate I pay?
The interest rates on business loans rates depend on several factors like the amount of money of money borrowed, the company assets the money will be used for as well as the field the business is operating in, how long the company has been operating and whether the company has enough cash flow to cover the loan, as well as the overall well-being or financial standing of the business.
What are the cost?
There are no hidden costs for our business loans. You’ll be aware of the amount you need to pay and when, right from the day you sign up. There’s not any compounding interest and no extra fees (as long as you make your payments in time).
We do not charge an application fee. You can get a cash loan with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan earlier?
You may choose to pay back the total amount of your advance loan at any time.
If you decide to pursue this option, please call our helpful business lending professionals. We will offer you with details on repayment along with an early payout estimate. It will be calculated using the sum of the principal remaining and any accrued interest at the date of early payout in addition to 1.5% of the principal balance and any fees that remain unpaid.
What are the repayment methods?
To ensure that you don’t miss repayments and to fit in your cash flow schedule, we provide payments that are either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing the ways we gather data, process, exchange and ensure the security of your information is crucial and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We utilise a sophisticated bank verification system link to instantly confirm your bank account information online, allowing us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner utilises an asset that they own to obtain the loan. The asset could be an individual property, such as the family home or it could be a business asset such as a vehicle as well as a piece of machine.
The majority of banks, 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 sold by the lender. In essence, it’s an opportunity to secure new financing by taking advantage of the value of what you already own.
Should I need security to secure an company loan?
Up to $150K in loans there is no requirement for asset security before you can access the money However, we do need an individual guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150,000 generally, there is a personal ensure and security in the form of a charge over assets.