FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Wonga Park Small Business Loans
Tell me what you think of the Wonga Park Small Business Loans
Wonga Park unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
The application for your Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and the funds could be on your account within 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. We offer a company loan is an upfront priced loan therefore you’ll know ahead of time the amount you will have to pay, including any interest, fees or charges. This is then broken down into either weekly or daily installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company need, such as control of cash flow business remodeling, marketing for purchasing inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Wonga Park Business Loans
What is the Larger Wonga Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
It is crucial to note that 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 in this amount the business needs to have been operating for a minimum of 3 years, and have an annual income of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used for almost every business need, including company renovations, purchase of inventory or new equipment for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. It is usually as a result of an charge on assets and can include registration with the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally based rather than defining security over an asset. The person who signs the guarantee is personally liable in the event that the business creditor 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 contains security interests that are registered for personal property (including objects or assets). The PPSR permits prioritisation over property that is personal to be granted in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal document lodged to offer the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking larger business loans of $250,000 or more we can offer an initial pre-approval that will help make the process. We may be able to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial well-being questions. It is not an offer of credit or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer you may receive may have different conditions.
Application process
Are I eligible for funding?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a few minutes and an experienced company expert in lending will contact you to guide you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License) and a valid NZBN/IRD as well as at least six months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent, 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually provide an answer in just one hour if you make your application within standard business times and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide an answer in just one business day.
For the Larger Business Loan ($100K and up) we might be likely to offer you with a conditional pre-approval in about 6 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 specifics of each application. Certain transactions have received approval within 24 hours.
The most effective method is to ensure you apply during normal company hours. Also, allow us to use our modern bank verification link to instantly check your bank’s information online. If you upload documents from your account statement, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) we can often provide an answer within one hour – provided you make your application in normal business hours and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to send us copies of your bank statements, we are able to offer a decision in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be able to provide you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be faster depending on the particular circumstances of each application. Some deals have been approved within 24 hours.
The fastest way can be make sure you apply during normal business hours. Also, allow us to use the modern bank verification to instantly confirm your bank details online. If you send us copies of your bank accounts, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we look at a variety of aspects in order to assess what is the well-being of your business and the amount of repayments your business can afford. The amount you receive from your loan will depend on the specific circumstances of your business.
When you submit an application for a specific amount we consider a variety of variables to assess the health for your business and the level of repayments that your business can support. The total amount of your loan will be contingent on the specifics the company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for business loans with us business credit, we will assess the risk profile for your company and provide you with a customised offer, including the amount of loan, the term and the interest rates. This company loan is an upfront priced loan and you’ll know the exact amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I am charged?
The interest rates on company loans rates differ based on various factors such as the amount that is borrowed, the company assets the money will be used for in addition to the industry that the company is in, how long the business is in operation as well as in the event that the business has sufficient cash flow to support the loan, and the general health or creditworthiness of the company.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll be aware of the amount you be required to pay, and when, from day one. There’s no compounding interest and no extra fees (as as you make your payments punctually).
We don’t charge an application fee. You can get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with setting up 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 in advance?
You can repay the entire amount of your loan at any point in time.
If you decide to do this please talk to one of our helpful company credit experts. They’ll provide you with repayment details as well as an early payout amount. The figure will be calculated as the sum of the principal remaining and any accrued interest at the date of early payout plus 1.5% of the principal amount remaining and any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about the ways we gather, use, exchange and safeguard your data, is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We use an advanced bank verification system that allows you to immediately confirm your bank account information online so we can offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner makes use of an asset that they own to make a loan. The asset can be either an individual property, such as the family home, or an company asset such as a vehicle or piece or equipment.
The vast majority of the lenders even the big banks, tend to make loans secured by an asset. If you are having difficulty paying back the loan then the asset might be taken over by the lender. In essence it is the process of securing additional financing making use of the value of what you already own.
What do I require security for an business loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds but we do need an individual guarantee. In the event that you fulfill the terms of your loan (as stipulated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150K, typically, you will need the option of a personal guarantee and security in the form charges on assets.