FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wungong Small Business Loans
Let me know about the Wungong Small Business Loans
Wungong unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional business loan?
The application for your Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and have the funds available in just 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. The company loan is a cash-based loan therefore you’ll know in advance the total amount due, which includes any interest, fees or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company use, including managing cash flows, company renovations, marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Wungong Business Loans
What is the Larger Wungong Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been trading for at least 3 years and generate an annual revenue of at least $700K. 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 to prove at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly all company need, including business renovations, purchase of equipment or inventory as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This can be done as a result of an charge against assets, and may include the registration of this with the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than stipulating security over an asset. The person who signs the ensure is personally accountable if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be granted according to the date a registration of a security interest.
A caveat is a legal document lodged to offer the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250K we can offer a preliminary pre-approval to help smooth out the process. We might be able to make this decision without credit checks and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial well-being questions. It is not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you might receive could have different terms.
Application process
Are I eligible for funding?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Complete the online form in just a few minutes, and an experienced business loan specialist will be in touch to guide you.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent, 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually provide a response in one hour – as long as you submit your request during quality company hours and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statements , we’ll be able to provide a decision in just 1 company day.
For Larger Business Loans ($100K up to $500,000) we may be likely to offer you with conditional pre-approval within about six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval in just 24 hours.
The most efficient method would be to ensure you apply during standard company hours and allow us to use the modern bank verification link to confirm your bank details online. If you upload duplicates of your banking accounts, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour, provided you apply during standard business times and permit us to use the bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll offer the decision within 1 business day.
For the Larger Business Loans ($100K and up) we may be able to provide you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain offers have been approved in the space of 24 hours.
The quickest method is to make sure you apply during standard business hours and allow us to use our sophisticated bank verification to instantly confirm your bank details online. If you choose to upload copies of your bank statements, it can take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of variables that determine the well-being of your business and the amount of repayments that your company will be able to support. The total amount of the loan will be determined by the particular circumstances of your company.
When you apply for a set amount, we consider a variety of elements to determine your well-being for your company as well as the amount of repayments that your business can afford. The total amount of your loan will be determined by the particular circumstances of your business.
Fees & repayments
How much should you charge for a company loan?
When you make an application for business loans with us business loans, we’ll assess the risk assessment for your business and provide you with a customised proposal that includes the loan amount, the terms and interest rates. This company loan is an upfront-priced loan and you’ll know the exact amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I pay?
Business loan interest rates vary due to factors such as the amount that is borrowed, what company assets the money will be used for, the industry the company operates in, how long the business has been running, how long the business has sufficient cash flow to cover the loan, and general well-being or financial standing of the company.
What are the fees?
There aren’t any hidden costs with our business loans. You’ll know precisely what you’ll need to pay, and when, from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can get a cash loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I repay the loan in advance?
You can decide to repay all of your advance loan at any time.
If you choose to do this please talk to one of our helpful company loan professionals. They’ll offer you with repayment details along with an early payout estimate. It will be calculated using the total of the principal balance plus any accrued interest as of the time of the early payout in addition to 1.5% of the principal remaining as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being transparent about how we collect information, use it, and exchange it, as well as safeguard your data, is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We make use of an advanced bank verification system link to immediately verify the bank account details online. This allows us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from an asset they own to make the funding. The asset can be an individual property, such as the family home, or an company asset such as a truck as well as a piece of machine.
The majority of banks, including the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, your assets could be taken over by the lender. In essence it is a way of securing new financing by making use of the value of what you already have.
Should I require security to get an business loan?
For loans that exceed $150,000, there is no requirement for asset security prior to the loan’s access however, we do need a personal guarantee. In the event that you fulfill the loan terms (as stipulated in the loan contract) Asset security is not needed. For loans of over $150K typically, you will need an individual ensure and security in the form an asset charge.