FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Westminster Small Business Loans
Tell me more about Westminster Small Business Loans
Westminster unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an traditional business loan?
Apply to get your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and the money could be in your account in 24 hours. Traditional business loans are based on an annual rate of interest together with additional fees and charges. We offer a business loan is a pre-paid loan and you’ll be aware of the amount you will have to pay, including any fees, charges or charges. This is then broken down into either a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company purpose including managing cash flows, company renovations, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
About Larger Westminster Business Loans
What is the Larger Westminster Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been in operation for at least 3 years with an annual turnover of at least $700,000. 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 demonstrate at least 12 months of trading.
What can I use the funding for?
A larger business loan can be used to fund almost any company use, including business renovations, purchase of new equipment or inventory, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. This can be done as a result of an charge over assets and can include registering this on the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is general in nature, rather than stating the security of a specific asset. The person who signs the guarantee is personally liable in the event that the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR grants the priority of personal property granted according to the date the security interest has been registered.
Caveats are legal document lodged to offer the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger business loans of $250,000 or more, we may offer an initial pre-approval in order to simplify the process. We may be able to get this done without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial well-being checks. This is not an offer of credit or guarantee of credit. A conditional approval is subject an exhaustive credit evaluation, and any offer that you are offered could have different terms.
Application process
Do I have the right to receive funds?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $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 expert in lending will call you to assist you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we usually offer a response in one hour – as long as you make your application in quality company time and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statement, we’ll provide the decision in just an company day.
For the Larger Business Loan ($100K to $500K) we could be capable of offer you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Some deals have been approved in 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours, and allow us to use our advance bank verification link to instantly verify your bank information online. If you choose to send us the copies of bank statements it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) We can usually offer a response in one hour – provided you make your application at standard business time and let us use the bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statements we can offer the decision in just an business day.
For Larger Business Loans ($100K or more) We may be capable of offer you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Some deals have been approved within the space of 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours and allow us to use our sophisticated bank verification to instantly confirm your bank details online. If you opt to upload documents from your account statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of elements in order to assess how much we can lend you health of your company as well as the amount of payments your business can support. The total amount of your loan will depend on the particular circumstances the business.
If you apply for a specific amount we will consider a number of factors to determine the health of the company and the level of payments your business will be able to support. The total amount of your loan will depend on the particulars of your business.
Fees & repayments
How much should you charge for an company loan?
When you make an application for our company loans, we will assess the risk profile that you have for your business and offer an individualised proposal that includes loan amount, term and interest rates. A business loan is an upfront cost loan which means you be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What determines the rate that I pay?
Business loan interest rates vary due to variables like the amount to be of money borrowed, the company assets the funds will be used for and the sector the business is in, how long the company is in operation, how long the company has enough cash flow to fund the loan, and overall health and creditworthiness of the business.
What are the charges?
There are no hidden costs with our company loans, and you’ll know exactly how much you be required to pay, and at what time, from the first day. There’s no compounding and no extra fees (as as you make your payments in time).
We don’t charge an application fee. You can apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You can choose to repay the total amount of your loan in full at any time.
If you choose to pursue this option, please call our helpful business loans professionals. The specialists will offer you with details for repayment and an early payment figure. This will be calculated as the total of the principal balance and any accrued interest at the time of the early payout, plus 1.5% of the principal remaining plus any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear how we collect information, use it, and exchange it, as well as secure your information, is crucial and is an essential aspect 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 personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to security for our clients and security. We make use of an advanced banking verification system to instantly verify your bank account details online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner uses the assets they have to secure the loan. The asset can be either a personal asset like the family home, or an company property like a truck or piece or equipment.
The majority of banks, not just the big banks, tend to make loans secured by an asset. If you have trouble paying back the loan, the asset could be sold by the lender. In essence it’s the process of securing additional financing making use of the value of what you already own.
What do I require security for a company loan?
For loans of up to $150K, no asset security is required before you can access the money but we require a personal guarantee. need an individual guarantee. So long as you comply with the loan terms (as detailed in your loan contract), asset security will never be needed. If you take out loans in excess of $150K generally, you are able to get personal ensure and security that is in the form an asset charge.