FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Woodbridge Small Business Loans
Let me know about the Woodbridge Small Business Loans
Woodbridge unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from an ordinary business loan?
You can apply to get this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and have the funds available in just 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. We offer a company loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including any interest, fees or charges. Then, it is broken down into either weekly or daily installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company reason, such as control of cash flow business renovations, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Woodbridge Business Loans
What is the Larger Woodbridge Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed for 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 that is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been in operation for at least 3 years with 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 of proving at least 12 months of trading.
How can the funds be utilised?
A large company loan can be used to fund almost all company reason, such as business remodeling, buying new equipment or inventory as well as 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 needed for accessing funds over $150,000. This can be done as a result of an charge against assets, which could also include the registration of this on the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally based rather than specifying the security for a particular asset. The person who is signing the ensure is personally liable in the event that the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is 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 the priority of personal property granted according to the date a security interest that is registered.
A caveat is a legal form of document to provide the legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan of more than $250K we may be able to provide an initial pre-approval to make the process. It is possible to apply for this without a credit check and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial health checks. It is not an offer or guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer you might receive could be on different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Complete the online form in just a few minutes, and an experienced company expert in lending will contact you to guide you.
To apply for up to $100,000 you’ll need proof of identity (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Application details including credit consent, 12 months of bank records, IRD statements and the last two years’ finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we usually provide an answer within an hour if you make your application at quality company time and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statements we can provide an answer in as little as one company day.
If you are applying for a Larger Business Loan ($100K and up) we could be in a position to offer the conditional pre-approval within 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 particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours. You can also allow us to use our advance bank verification link to instantly verify your bank account information online. If you opt to send us copies of your bank accounts, it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer in just one hour, provided you submit your request during normal business timings and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statements, we are able to offer the decision within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be in a position to provide the conditional pre-approval in around six hours. Once you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Certain offers have been approved within 24 hours.
The fastest method can be ensure you apply during normal business hours. You can also allow us to use the advance bank verification link to verify your bank information online. If you opt to upload copies of your bank accounts, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we will consider a number of factors for determining your health of your company as well as the amount of the repayments your company can afford. The amount you receive from the loan will be determined by the particular circumstances the company.
When you make an application for a certain amount, we take into consideration a variety of elements to determine how much we can lend you such as well-being for your business and the level of repayments your business is able to afford. The amount you receive from your loan will be determined by the particulars for your company.
Fees & repayments
What is the cost for the cost of a company loan?
When you request our business financing, we’ll assess the risk assessment the company and offer an individualised proposal that includes loan amount, term and the interest rates. This company loan is an upfront cost loan therefore you will be aware in advance of the total amount you will have to pay, including charges or interest.
What determines the amount I pay?
The interest rates on company loans rates vary due to factors such as the amount that is borrowed, what business assets the money will be used for in addition to the industry that the business is in, how long the business has been in operation as well as what percentage of the company has enough cash flow to cover the loan, and general health as well as creditworthiness business.
What are the fees?
There are no hidden fees with our business loans. You’ll know precisely what you’ll be required to pay and when, right from the first day. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments in time).
We do not charge an Application Fee. You can request a credit loan with no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with setting up 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 amount of loan.
Can I pay off the loan earlier?
You can decide to repay the total amount of your loan at any point in time.
If you are deciding to pursue this option, please talk to one of our helpful company lending professionals. The specialists will provide you with the details of your repayment and an early payment figure. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the time of early payment and 1.5% of the principal remaining plus any outstanding fees.
How do repayments work?
To make sure that you don’t miss payments and to work your cash flow schedule, we provide repayments either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about how we collect data, process, exchange and ensure the security of your information is of huge importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We make use of an advanced bank verification system link to immediately verify your bank account details online to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an business owner borrows from assets they own to get the loan. The asset may be an individual property, such as the family home, or a business asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, including the major banks, prefer to secure loans against an asset. If you have trouble paying back the loan, the asset might be sold by the lender. In essence, it is means of securing additional financing using the value of what you already own.
Are I need security for an company loan?
Up to $150,000 in loans there is no requirement for asset security upfront to access the money however, we do require a personal guarantee. So long as you comply with your loan obligations (as specified in the loan contract) Asset security is not required. For loans of over $150K generally there is personal ensure and security is provided in the form of charges on assets.