FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Watermans Bay Small Business Loans
Tell me what you think of the Watermans Bay Small Business Loans
Watermans Bay unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from an traditional business loan?
You can apply to this Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. The company loan is an upfront priced loan so you will know ahead of time the total amount to be paid, including the interest, fees and charges. This is then broken down into 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 to fulfill almost every company use, including the management of cash flow, business improvements, advertising for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
Concerning Larger Watermans Bay Business Loans
What is the Larger Watermans Bay Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund 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 the flow of cash.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan of this size the company needs to have been operating for a minimum of 3 years and have an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be used for?
A Larger Business Loan can be used to fund almost all company purpose including company renovations, purchase of new equipment or inventory 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 necessary to access funding over $150,000. It’s in the form of a charge on assets, and could include the registration of this on the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally based rather than stating 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 registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR gives the priority of personal property granted according to the date the registration of a security interest.
A caveat is a legal document filed to provide notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan of $250K or more, we may offer an initial pre-approval that will help smooth out the process. It is possible to make this decision without a credit verification and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial well-being 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 exhaustive credit evaluation, and any offer you may receive may be based on different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form in just a few minutes, and a dedicated company loan specialist will call you to assist you.
For a loan of up to $100,000 you’ll require proof of identity (valid Driver’s License) as well as a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent twelve months bank statement, an IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) We can usually provide a response in one hour, provided you make your application at quality business time and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statement, we’ll provide an answer within the span of one business day.
For Larger Business Loans ($100K and up) we could be likely to offer you with conditional pre-approval in around six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this can be quicker based upon the circumstances for each application. Certain offers have been approved within the space of 24 hours.
The most efficient method can be make sure you apply during normal business hours and allow us to use the advance bank verification link to verify your bank account information online. If you send us the copies of bank statement, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within one hour if you apply during standard business time and let us use the bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements we can offer a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we could be in a position to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Certain deals have been approved in less than 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours. Also, let us use the modern bank verification link to verify your bank account information online. If you opt to send us copies of your bank statements, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a particular amount, we consider a variety of factors for determining how much we can lend you well-being of your company as well as the amount of repayments that your company can support. The total amount of your loan will depend on the specific circumstances that are unique to your business.
If you apply for a particular amount, we take into consideration a variety of variables to assess how much we can lend you such as well-being of your company and the extent of the repayments your business is able to afford. The amount you receive from your loan will depend on the particulars the company.
Fees & repayments
How do you charge for a business loan?
When you request our business financing, we’ll assess the risk assessment for your company and offer you with a customised offer including the amount of the loan, the duration and the interest rates. It is a company loan is a loan that is priced upfront which means you know the exact amount payable including any charges, interest rates or fees.
What determines the amount I will be charged?
The interest rates on business loans rates vary due to factors including the amount borrowed, the company assets the funds will be used for in addition to the industry that the business is in, how long the company is in operation, whether the business has sufficient cash flow to support the loan, and general health or financial standing of the company.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll know precisely how much you be required to pay and at what time, from day one. There’s no compounding interest and no extra fees (as as you make your payments on time).
We don’t charge an Application Fee. You can apply for a loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay off the loan early?
You can decide to repay all of your loan early at any time.
If you decide to pursue this option, please contact our helpful company loan specialists. They’ll offer you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal balance and accrued interest to the time of the early payout plus 1.5 percent of the principal balance and any fees that remain unpaid.
How do repayments work?
To make sure you do not miss payment dates and to align your cash flow schedule, we offer repayments either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about how we collect the information we collect, use, share and ensure the security of your information is of huge importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We make use of an advanced banking verification system to instantly verify your bank account information online to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner utilises an asset they own to obtain the funding. The asset could be an individual asset, such as the family home or a business asset such as a truck as well as a piece of machine.
The vast majority of the lenders including the big banks, tend to make loans secured by assets. If you’re having trouble paying back the loan, the asset might be transferred to the lender. In essence it’s means of securing additional financing taking advantage of the value of what you already have.
What do I require security to get a business loan?
Up to $150K in loans the requirement for asset security is not required prior to the loan’s access but we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan commitments (as stipulated in the loan contract) the security of assets will never be required. For loans over $150,000 generally, you are able to get personal ensure and security in the form a charge over assets.