FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Wandi Small Business Loans
Let me know about the Wandi Small Business Loans
Wandi unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from a traditional business loan?
The application to get your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and have the funds on your account within 24 hours. Traditional company loans have an annual interest rate as well as other fees and charges. This business loan is a pre-paid loan therefore you’ll know ahead of time the amount you will have to pay, including any fees, interest or charges. This is then divided into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business reason, such as control of cash flow business remodeling, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Wandi Business Loans
What is the Larger Wandi 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 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to be trading for at least 3 years and have an annual turnover of $700K. The applicant must also be 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 prove at minimum 12 months of continuous trading.
How can the funding be used for?
A large business loan can be used for almost all company need, including business renovations, to purchase inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This is by way of charge against assets, and could be registered in the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay credit that is general in nature, rather than stipulating security over an asset. The person signing the ensure is personally liable if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR grants preference over private property assigned in accordance with the date on which a security interest has been registered.
An affidavit is an official document lodged to offer the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan of $250,000 or more it’s possible to offer an initial pre-approval to smooth out the process. It is possible to make this decision without credit checks and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health questions. It’s in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you are offered could have different conditions.
Application process
Do I qualify for funds?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in just a few minutes, and a dedicated business lending specialist will be in touch to assist you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K – $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually offer an answer in just one hour – as long as you submit your request at standard business hours and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements , we are able to provide a decision within 1 company day.
For the Larger Business Loan ($100K and up) we might be capable of provide you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Certain transactions have received approval in 24 hours.
The quickest method would be to make sure you apply during normal business hours, and let us use the advanced bank verification system link to instantly check your bank’s information online. If you opt to upload duplicates of your banking statements it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we usually offer a response in one hour, provided you make your application during standard business time and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements, we’ll be able to provide a decision within 1 business day.
For Larger Business Loans ($100K up to $500,000) we could be in a position to provide the conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the specifics of each application. Some deals have been approved within less than 24 hours.
The most effective method is to ensure you apply during standard business hours. Also, permit us to use the sophisticated bank verification to instantly confirm your bank details online. If you opt to upload documents from your account accounts, it will take a little 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 certain amount we look at a variety of elements in order to assess what is the well-being of the company and the level of repayments your business can afford. The amount you receive from your loan will be contingent on the specific circumstances of your company.
When you apply for a certain amount, we take into consideration a variety of variables to assess the well-being that is your company and the level of repayments your company is able to afford. The total amount of your loan will be determined by the particulars of your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to make an application for business loans with us business loan, we’ll assess the risk profile of your company and offer you with a customised offer, including the loan amount, the terms and the interest rates. The company loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I am charged?
The interest rates on business loans rates vary due to factors like the amount of money of money borrowed, the business assets the money are used to purchase and the sector the business operates in, how long the business has been in operation for, what percentage of the company has enough cash flow to support the loan, and general well-being as well as creditworthiness company.
What are the costs?
There aren’t any hidden costs with our company loans, and you’ll know precisely what you be required to pay, and when, starting from the very first day. There’s no compounding interest and no extra fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You can apply for a loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan earlier?
You can decide to repay the entire amount of the loan at any point in time.
If you are deciding to pursue this option, please call our helpful business loans professionals. They’ll provide you with repayment details and an early payment figure. The figure will be calculated as the sum of the principal remaining and any accrued interest at the time of early payout, plus 1.5 percent of the principal balance and any fees that remain unpaid.
How do repayments work?
To ensure that you don’t miss payments and to work your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and secure your information, is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We use an advanced bank verification system to instantly verify the bank account details online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from an asset they own to obtain a loan. The asset may be an asset belonging to the personal, like the family home, or a business asset like a truck as well as a piece of machine.
The vast majority of lending institutions, even the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, your asset may be offered for sale by the lender. In essence, it’s means of securing new funding taking advantage of the value of what you already own.
Are I require security to get an business loan?
For loans of up to $150,000, there is no requirement for asset security prior to the loan’s access, however we require a personal guarantee. need the personal guarantee. If you adhere to the terms of your loan (as stated in your loan contract) the security of assets is not required. For loans of over $150,000 typically, you will need personal ensure and security in the form an asset charge.