FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Windsor Small Business Loans
Tell me how you can avail the Windsor Small Business Loans
Windsor unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from the traditional business loan?
It is possible to apply to get the Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and the funds could be available in just 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. This company loan is a pre-paid loan so you will be aware in advance of the total amount payable including any fees, charges or charges. Then, it is broken down into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business purpose including control of cash flow company remodels and marketing to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Windsor Business Loans
What is the Larger Windsor Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit of this size, your company needs to be trading for at least 3 years and generate an annual revenue of at least $700,000. The applicant must also be 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 demonstrate at the least 12 months of operating.
What can I use the funding for?
A large company loan is a great option for almost any company use, including company renovations, purchase of equipment or inventory, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It is usually in the form of a charge against assets, which could also be registered with the PPSR or making as a caveat.
A director’s or personal guarantee is a promise to repay a loan which is generally in nature rather than specifying the security for a particular asset. The person signing the guarantee is personally responsible if the company 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 records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR allows priority over personal property to be granted in accordance with the date on which a security interest that is registered.
A caveat is a legal form of document to offer the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan that exceeds $250,000, we may offer an initial pre-approval that will help smooth out the process. We could be able to get this done without credit checks and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health questions. It is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you receive could be based on different terms.
Application process
Can I be eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in just a few minutes, and a dedicated company lending specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details including credit consent, 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, plus 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 up to $100,000) We can usually provide a response in one hour if you make your application at standard company timings and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statements , we are able to provide the decision in as little as one business day.
For the Larger Business Loan ($100K and up) we may be in a position to offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Some agreements have been approved within 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours, and allow us to use our advanced bank verification system link to instantly verify your bank account information online. If you opt to send us the copies of bank statements , it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we typically provide a response in one hour if you apply within standard business time and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements, we’ll be able to provide an answer in just the span of one business day.
For the Larger Business Loans ($100K to $500K) We may be likely to provide you with a conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some agreements have been approved in the space of 24 hours.
The fastest method would be to make sure you apply during normal business hours and allow us to use our modern bank verification link to verify your bank account information online. If you send us documents from your account statement, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of variables for determining your well-being of the business and the extent of repayments your business can afford. The total amount of your loan will depend on the specific circumstances of your business.
When you make an application for a set amount, we take into consideration a variety of aspects to assess the health for your company as well as the amount of repayments that your company can support. The total amount of your loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for one of our company financing, we’ll assess the risk assessment that you have for your company and provide you with a customised offer including the amount of loan, the term and the interest rates. The business loan is an upfront priced loan which means you know the exact amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I will be charged?
Interest rates for company loans rates depend on several factors such as the amount that is of money borrowed, the business assets the funds will be used for and the sector the company operates in, how long the business has been in operation as well as whether the company has sufficient cash flow to support the loan, and the general well-being or financial standing of the business.
What are the costs?
There are no hidden costs with our business loans. You’ll know precisely how much it is that you need to pay and when, starting from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an application fee. You are able to get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay out the loan earlier?
You can choose to repay all of your advance loan at any time.
If you choose to pursue this option, please talk to one of our helpful company lending professionals. We will offer you with details on repayment and an early payment figure. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payout in addition to 1.5% of the principal balance plus any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss payments and to work your cash flow schedule, we provide repayments either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing the ways we gather the information we collect, use, share and safeguard your data, is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We use an advanced bank verification system that allows you to immediately verify the bank account details online to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of an asset they own to get the funds for a loan. The asset could be an individual asset, such as the family home, or it could be a business asset such as a truck or other piece of machinery.
The vast majority of the lenders including the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan then your assets could be sold by the lender. In essence, it is the process of securing new funding using the worth of the asset you already have.
Do I need security for an business loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. So long as you comply with your loan obligations (as specified in your loan contract document) the security of assets will never be needed. For loans that exceed $150K, generally there is the option of a personal ensure and security is provided in the form of charges on assets.