FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Woodville Small Business Loans
Let me know about the Woodville Small Business Loans
Woodville unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from an traditional company loan?
The application to get the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and the money could be on your account within 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. The business loan is an upfront priced loan and you’ll be aware of the total amount due, which includes any fees, charges or charges. Then, it is broken down into weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business need, such as cash flow management, business renovations, marketing to purchase inventory, new equipment, as general working capital and so much more. The loan is not available for personal use.
About Larger Woodville Business Loans
What is the Larger Woodville Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
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 in this amount the company needs to have been trading for at least 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (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 is a great option for almost any business need, including business renovations, to purchase new equipment or inventory, as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. This is as a result of an charge on assets, which could also be registered on the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to repay a loan which is general in nature rather than defining security over an asset. The person who is signing the ensure is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR grants the priority of personal property assigned according to the date a security interest has been registered.
An affidavit is an official document that is filed to offer the legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan that exceeds $250K we can offer an initial pre-approval that will help make the process. It is possible to do this without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial well-being questions. It’s neither an offer nor a guarantee of credit. A conditional approval is subject an exhaustive credit evaluation, and any offer that you receive could have different conditions.
Application process
Do I qualify for funds?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a couple minutes, and an experienced business loan specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we usually provide an answer within an hour if you submit your request within standard company time and let us make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we’ll be able to offer an answer within the span of one company day.
For Larger Business Loans ($100K or more) we may be capable of provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Some offers have been approved in the space of 24 hours.
The quickest method can be make sure you apply during standard company hours and let us use the modern bank verification to check your bank’s information online. If you choose to send us duplicates of your banking statements it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within an hour – as long as you make your application in standard business timings and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements, we are able to offer a decision in as little as an business day.
For the Larger Business Loans ($100K up to $500,000) we may be in a position to provide you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some deals have been approved within the space of 24 hours.
The quickest method can be ensure you apply during normal business hours and allow us to use the advance bank verification link to confirm your bank details online. If you upload the copies of bank statements, it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we will consider a number of aspects that determine what is the well-being of your company as well as the amount of repayments your business is able to afford. The total amount of your loan will depend on the specifics the business.
When you submit an application for a set amount, we will consider a number of factors to assess how much we can lend you such as well-being for your business and the level of the repayments your company will be able to support. The total amount of the loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to apply for business loans with us business loans, we’ll assess the risk assessment of your business and provide you with a customised proposal that includes the amount of loan, the term and the interest rates. This company loan is a loan that is priced upfront so you will know the exact amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I will be charged?
The interest rates on company loans rates vary due to factors including the amount that is borrowed, what company assets the money will be used for in addition to the industry that the business is operating in, how long the business has been running and in the event that the company has sufficient cash flow to cover the loan, and also the overall well-being as well as creditworthiness business.
What are the charges?
There are no hidden fees with our business loans, and you’ll be aware of the amount it is that you be required to pay, and when, right from the very first day. There’s no compounding interest and no extra fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You are able to request a credit loan absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan earlier?
You can decide to repay the entire amount of your loan early at any time.
If you choose to do this please call our helpful company loan professionals. The experts will provide you with the details of your repayment along with an early payout estimate. This will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of the early payout and 1.5 percent of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we offer repayments that are either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and being transparent about how we collect the information we collect, use, share and protect your information, is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We utilise a sophisticated bank verification system link to instantly verify the bank account details online, allowing us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner uses the assets they have to secure the loan. The asset can be either an individual asset, such as the family home or a business asset such as a vehicle or other piece of machinery.
The majority of lenders, including the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan, your assets could be offered for sale by the lender. In essence, it is a way of securing additional financing using the worth of the asset you already have.
Do I require security to secure an business loan?
For loans of 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. require the personal guarantee. As long as you follow the loan terms (as stated in your loan contract document), asset security is not required. If you take out loans in excess of $150,000 typically, you will need an individual ensure and security that is in the form the charge of assets.