FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The West Swan Small Business Loans
Tell me what you think of the West Swan Small Business Loans
West Swan unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
Apply to your Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and have the funds in your account within 24 hours. Traditional business loans are based on an interest rate per annum together with additional fees and charges. The company loan is a loan that is priced upfront so you will be aware of the total amount to be paid, including the interest, fees and charges. This is then divided into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business use, including cash flow management, business remodels and marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
About the Larger West Swan Business Loans
What is the Larger West Swan Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be used for?
A large company loan can be used for almost any business purpose including business improvements, purchasing equipment or inventory for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This can be done by way of charge against assets, and may be registered through the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature, rather than stipulating security over an asset. The person who is signing the ensure is personally responsible if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR permits preference over private property assigned depending on the date that a security interest was registered.
An affidavit is an official document lodged to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan of $250K or more we may be able to provide an initial pre-approval in order to make the process. It is possible to apply for this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial health checks. This is not an offer or guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you are offered could be based on different conditions.
The application process
Can I be eligible for funding?
You may apply for an company 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 demonstrate at minimum 6 months of business (for a 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 simple and easy. Just complete the online application in few minutes and an experienced company loan specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll require identification details (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 require:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Application details including credit consent as well as 12 months bank statement, an IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within one hour if you submit your request within quality company times and you allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statements , we’ll be able to offer the decision in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be capable of provide you with conditional pre-approval within 6 hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within 24 hours.
The fastest way is to ensure you apply during normal business hours and allow us to use our advance bank verification link to verify your bank account information online. If you choose to upload duplicates of your banking statements , it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we typically provide a response in one hour if you submit your request at standard business hours and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements we can provide an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be likely to provide you with conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The fastest way is to make sure you apply during normal business hours. You can also permit us to use the sophisticated bank verification link to verify your bank account information online. If you choose to upload documents from your account accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount, we consider a variety of variables to determine what is the health that is your business as well as the amount of repayments that your business is able to afford. The amount you receive from the loan will be determined by the particular circumstances that are unique to your business.
When you make an application for a set amount, we consider a variety of variables to determine how much we can lend you such as well-being of the company and the amount of repayments that your business can support. The total amount of your loan will depend on the particulars the company.
Fees & repayments
What is the cost for the cost of a business loan?
When you make an application for one of our company loans, we’ll assess the risk profile that you have for your business and provide you with a tailored proposal that includes the amount of loan, the term and the interest rates. A business loan is an upfront priced loan so you will be aware of the total amount due, which includes any interest rates, fees or charges.
What is the factor that determines the price I am charged?
The interest rates on business loans rates depend on several factors like the amount of money that is borrowed, what business assets the money are used to purchase as well as the field the business is in, how long the company has been in operation, in the event that the business has sufficient cash flow to fund the loan, and overall well-being or creditworthiness of the company.
What are the fees?
There aren’t any hidden charges with our company loans, and you’ll know precisely what you be required to pay and when, right from the first day. There’s no compounding interest, and no extra fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You can make an application for loans with no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with establishing 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 percent of the amount of the loan.
Can I pay off the loan earlier?
You can decide to repay all of your loan early at any time.
If you do decide to do this please speak to our friendly business loans experts. The specialists will provide you with details on repayment and an early payout figure. This is calculated as the sum of the principal remaining and the accrued interest up to the time of early payout plus 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing the ways we gather information, use it, and exchange it, as well as safeguard your data, is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We use an advanced banking verification system to immediately verify your bank account details online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a business owner makes use of assets they own to obtain the loan. The asset could be an individual asset, such as the family home, or an company asset like a truck or piece or equipment.
The majority of the lenders even the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan, then the asset could be offered for sale by the lender. In essence, it’s means of securing new financing using the value of what you already own.
Do I require security for a business loan?
For loans of up to $150,000, it is not necessary to secure assets prior to the loan’s access However, we do need an individual guarantee. So long as you comply with your loan commitments (as specified in your loan contract), asset security is not needed. If you take out loans in excess of $150,000 generally, there is a personal guarantee and security that is in the form an asset charge.