FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the West Footscray Small Business Loans
Tell me how you are able to avail the West Footscray Small Business Loans
West Footscray unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an ordinary business loan?
Apply for this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and have the funds available in just 24 hours. Traditional business loans are based on an annual rate of interest together with additional fees and charges. The business loan is a loan that is priced upfront so you will be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for almost any business use, including managing cash flows, business remodels and marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
Concerning Larger West Footscray Business Loans
What is the Larger West Footscray Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been operating for at least three years and have an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can the funds be used for?
A larger business loan can be used for almost all company need, including business improvements, purchasing equipment or inventory for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This can be done by taking a charge over assets, and may include the registration of this through the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is general in nature rather than stipulating the security for a particular asset. The person who signs the ensure is personally liable in the event that the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a security interest was registered.
The caveat can be described as a formal document lodged to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more we may be able to provide an initial pre-approval in order to smooth out the process. We may be able to apply for this without a credit check and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial health questions. It’s not an offer of credit or guarantee of finance. A conditional approval is subject an assessment of your creditworthiness and any offer that you may receive may be based on different conditions.
Application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the 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. Simply complete the online form within a couple minutes, and an experienced business loan specialist will call you to guide you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent as well as 12 months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer in just one hour, provided you apply within standard business timings and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements , we will be able to provide an answer in as little as 1 company day.
For the Larger Business Loan ($100K up to $500,000) we may be able to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain offers have been approved in the space of 24 hours.
The most efficient method can be make sure you apply during normal company hours. Also, allow us to use the advance bank verification to instantly check your bank’s information online. If you decide to upload duplicates of your banking statement, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) we usually offer a response in one hour if you make your application in normal business times and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to send us copies of your bank statements we can provide an answer within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be in a position to offer you with pre-approval conditional to your application in around six hours. Once you have 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 particular circumstances of each application. Some transactions have received approval in the space of 24 hours.
The quickest method is to make sure you apply during standard business hours. Also, permit us to use the sophisticated bank verification to check your bank’s information online. If you upload the copies of bank statements it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a particular amount, we will consider a number of elements that determine what is the health that is your business as well as the amount of the repayments your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances that are unique to your company.
If you apply for a specific amount we will consider a number of factors to determine the health that is your company and the level of the repayments your business is able to afford. The amount you receive from your loan will be determined by the particulars the business.
Fees & repayments
What is the cost for a company loan?
If you decide to request our business financing, we’ll assess the risk assessment that you have for your business and offer you with a customised proposal that includes the amount of loan, the term and the interest rates. The company loan is an upfront priced loan therefore you will be aware of the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I’m charged?
The interest rates on business loans rates differ based on various factors including the amount that is borrowed, what business assets the funds will be used for in addition to the industry that the business operates in, the long the company has been running and in the event that the business has enough cash flow to cover the loan, as well as the general well-being as well as creditworthiness business.
What are the cost?
There aren’t any hidden costs with our company loans. You’ll be aware of the amount you’ll be required to pay, and when, right from the first day. There’s no compounding interest, and no additional fees (as as you make your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay out the loan early?
You can repay the entire amount of your loan at any point in time.
If you choose to do this please speak to our friendly company loan experts. We will offer you with details on repayment and an early payout figure. It will be calculated using the sum of the principal remaining plus any accrued interest as of the time of early payment in addition to 1.5 percent of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing due dates and also to be in line with your cash flow routine, we offer repayments that are either daily or weekly. They will be automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear the ways we gather the information we collect, use, share and ensure the security of your information is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We make use of an advanced bank verification system to instantly confirm your bank account information online. This allows us to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses the assets they have to get the funding. The asset can be an asset belonging to the personal, like the family home, or an company asset such as a vehicle or piece or equipment.
The vast majority of banks, even the major banks, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, the asset might be offered for sale by the lender. In essence it’s means of securing new financing by using the value of what you already own.
Should I require security to get a company loan?
For loans that exceed $150,000, the requirement for asset security is not required upfront to access the money but we do need a personal guarantee. As long as you follow the terms of your loan (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150K typically, you will need personal guarantee and security in the form of the charge of assets.