FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The West Footscray Small Business Loans
Let me know more about West Footscray Small Business Loans
West Footscray unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from the traditional company loan?
Apply to your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and the funds could be available in just 24 hours. Traditional business loans have an annual rate of interest plus other fees and charges. We offer a business loan is a cash-based loan so you will know in advance the total amount payable including any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business use, including control of cash flow company renovations, marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan is not available to fund personal expenses.
About Larger West Footscray Business Loans
What is the Larger West Footscray Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to be trading for at least 3 years with an annual turnover of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funding for?
A larger business loan can be used to fund almost every business purpose including business improvements, purchasing new equipment or inventory or as 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 needed for funding of more than $150,000. It is usually as a result of an charge over assets, which could also include registering this through the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally based rather than stating the security for a particular asset. The person signing the guarantee is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR gives the priority of personal property granted depending on the date that a registration of a security interest.
The caveat can be described as a formal document that is filed to provide an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of more than $250K we can offer an initial pre-approval in order to smooth out the process. It is possible to get this done without credit checks and within six hours of your initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial well-being checks. It’s neither an offer nor a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could have different conditions.
Application process
Are I eligible for funding?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (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. Just fill out the online application in just a few minutes, and an experienced business lending specialist will be in touch to guide you.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, plus interim current financial year financials as well as Aged Payables and Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) we usually offer an answer in just one hour – as long as you make your application during standard business hours and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statements we can provide the decision in just one company day.
For Larger Business Loans ($100K or more) we may be in a position to provide you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The quickest method can be make sure you apply during standard company hours, and allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you decide to upload documents from your account accounts, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within an hour – provided you submit your request in standard business timings and let us use the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statement, we’ll offer a decision within 1 business day.
For the Larger Business Loans ($100K and up) we might be capable of provide you with a conditional pre-approval within about six hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain offers have been approved within 24 hours.
The fastest method would be to ensure you apply during normal business hours, and permit us to use the advance bank verification to instantly verify your bank account information online. If you send us documents from your account statement, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of factors that determine the well-being of your company as well as the amount of the repayments your company will be able to support. The total amount of your loan will depend on the specifics that are unique to your company.
If you apply for a particular amount, we consider a variety of aspects to assess the health of your business and the amount of repayments your company can afford. The total amount of the loan will be determined by the specific circumstances for your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for one of our business credit, we’ll assess the risk assessment for your business and provide an individualised offer including the amount of the loan, the duration and the interest rates. It is a company loan is a loan that is priced upfront so you will be aware of the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates depend on a variety of factors such as the amount that is borrowed, what business assets the funds are used to purchase in addition to the industry that the company operates in, the long the business has been operating for, whether the business has sufficient cash flow to pay for the loan, as well as the general health or financial standing of the company.
What are the charges?
There aren’t any hidden charges with our company loans, and you’ll know precisely how much it is that you need to pay and at what time, from the first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We do not charge an Application Fee. You are able to make an application for loans absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You can decide to repay the entire amount of your loan at any point in time.
If you decide to do this please talk to one of our helpful business loan specialists. The specialists will provide you with repayment details as well as an early payout amount. This will be calculated as the total of the principal remaining and the accrued interest up to the date of early payout in addition to 1.5% of the principal balance plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear how we collect information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We employ an exceptionally sophisticated bank verification system that allows you to immediately confirm your bank account information online, allowing us to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner utilises an asset they own to get the loan. The asset may be an individual asset, such as the family home or a company asset such as a truck or piece or equipment.
The majority of the lenders including 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 sold by the lender. In essence it is means of securing new financing making use of the value of what you already have.
Should I require security to secure an company loan?
For loans up to $150,000 the requirement for asset security is not required before you are able to access the money However, we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as specified in the loan contract) the security of assets is not required. For loans over $150K generally, there is a personal ensure and security that is in the form charges on assets.