FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Woodbridge Small Business Loans
Let me know how you can avail the Woodbridge Small Business Loans
Woodbridge unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
You can apply for the Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and the funds could be in your account within 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. We offer a business loan is a loan that is priced upfront and you’ll know in advance the total amount due, which includes the interest, fees and charges. Then, it is divided into weekly or daily repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost any company reason, such as control of cash flow company improvements, advertising for purchasing inventory or new equipment, to fund general working capital and much more. The loan is not available for personal use.
About the Larger Woodbridge Business Loans
What is the Larger Woodbridge Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan that is this large the company needs to be operating for a minimum of 3 years with an annual turnover of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funds for?
A larger business loan can be used to fund almost all company use, including company renovations, purchase of new equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It’s in the form of a charge against assets and can include registration on the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally in nature rather than stating security over an asset. The person who signs the ensure is personally accountable if the company the borrower fails to repay 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 objects or assets). The PPSR permits priority over personal property to be assigned depending on the date that a security interest that is registered.
An affidavit is an official document that is filed to provide notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan of more than $250,000 it’s possible to offer a preliminary pre-approval to help make the process. We may be able to do this without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial health questions. It’s not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a couple minutes, and a dedicated business credit specialist will be in touch to assist you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License), a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we can often provide an answer in just one hour if you make your application within quality company hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements , we are able to offer an answer within the span of one business day.
For Larger Business Loans ($100K up to $500,000) we may be likely to offer you with pre-approval conditional to your application in around 6 hours. Once you have 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 circumstances of each application. Certain deals have been approved in the space of 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours. Also, permit us to use the modern bank verification link to verify your bank account information online. If you choose to upload the copies of bank statement, it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour, provided you apply during normal business time and permit us to use the bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements, we are able to offer a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be in a position to offer you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some offers have been approved in less than 24 hours.
The fastest method is to make sure you apply during standard business hours. Also, let us use the advance bank verification link to instantly verify your bank account information online. If you choose to upload documents from your account statements it takes a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a particular amount, we consider a variety of variables to determine the health for your company and the level of repayments your business is able to afford. The total amount of your loan will be contingent on the particular circumstances for your company.
When you submit an application for a set amount, we look at a range of elements to assess your well-being of your business and the level of repayments that your company can afford. The total amount of your loan will depend on the specific circumstances the company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request the business loans, we’ll assess the risk assessment of your business and offer you with a tailored offer that includes loan amount, term and the interest rates. A company loan is an upfront cost loan which means you be aware of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Interest rates for business loans rates vary due to factors including the amount borrowed, the business assets the funds will be used for, the industry the business operates in, the long the business is in operation as well as in the event that the business has sufficient cash flow to support the loan, as well as the overall health or financial standing of the business.
What are the costs?
There are no hidden costs with our business loans, and you’ll be aware of the amount you’ll need to pay, and at what time, from day one. There’s not any compounding interest and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can apply for a loan no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of your loan early at any time.
If you choose to pursue this option, please speak to our friendly business credit professionals. They’ll provide you with repayment details and an early payout figure. It will be calculated using the sum of the remaining principal amount and accrued interest to the time of the early payout and 1.5% of the principal balance plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing due dates and also to be in line with your cash flow standard, we provide payments that are either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as safeguard your data, is vital and is an essential 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 sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their privacy. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner borrows from an asset that they own to secure the loan. The asset can be either an individual property, such as the family home, or an business asset like a truck or other piece of machinery.
The majority of banks, even the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan then your asset may be sold by the lender. In essence it’s a way of securing new funding using the worth of the asset you already own.
Are I require security for a business loan?
For loans up to $150K the requirement for asset security is not required upfront to access the money however, we require a personal guarantee. need an individual guarantee. If you adhere to your loan commitments (as stipulated in the loan contract) the security of assets will never be needed. For loans that exceed $150,000, generally, there is a personal guarantee and security in the form an asset charge.