FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Warwick Small Business Loans
Tell me about the Warwick Small Business Loans
Warwick unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an traditional business loan?
Apply for the Small Business Loan in under 10 minutes over the phone, receive an instant response and funds may be available in just 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. We offer a company loan is a cash-based loan so you will know in advance the total amount to be paid, including the interest, fees and charges. This is then broken down into weekly or daily installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business use, including the management of cash flow, company improvements, advertising to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
Concerning Larger Warwick Business Loans
What is the Larger Warwick Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan that is this large the company needs to be operating for at least three years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost every company purpose including business renovations, to purchase new equipment or inventory for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This is in the form of a charge against assets and can include the registration of this with the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature rather than stipulating security over a particular asset. The person signing the guarantee is personally accountable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR permits preference over private property granted according to the date a registration of a security interest.
Caveats are legal document lodged to offer the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000, we may offer a preliminary pre-approval to help simplify the process. We might be able to do this without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health questions. This is neither an offer nor a guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you might receive could be on different conditions.
Application process
Do I qualify for funds?
You can apply for a company 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)
- you must prove 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 to $500K)
How do I apply?
The application process is simple and easy. Just complete the online application within a couple minutes, and a dedicated company loan specialist will be in touch to assist you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank records, IRD statements and the last two years’ finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K and up) we usually provide an answer in just one hour, provided you submit your request in quality business timings and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we will be able to offer a decision in just an company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be in a position to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The most effective method for you to apply is ensure you apply during normal company hours, and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to send us duplicates of your banking statements it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer in just one hour if you submit your request during normal business time and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statements, we are able to provide the decision in just 1 business day.
For Larger Business Loans ($100K or more) We may be able to provide you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some transactions have received approval within less than 24 hours.
The fastest method can be make sure you apply during standard business hours. You can also allow us to use our sophisticated bank verification to instantly verify your bank information online. If you choose to upload documents from your account statement, it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of aspects in order to assess how much we can lend you health that is your company and the extent of repayments your company can afford. The total amount of your loan will depend on the specific circumstances of your company.
When you make an application for a specific amount we consider a variety of aspects to assess your well-being of the business and the level of repayments your business is able to afford. The amount you receive from the loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for one of our business financing, we will assess the risk profile the company and offer you with a customised offer including the loan amount, the terms and interest rates. It is a company loan is an upfront priced loan and you’ll know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I am charged?
The interest rates on business loans rates depend on several factors including the amount that is borrowed, what business assets the money are used to purchase as well as the field the company operates in, how long the business is in operation as well as what percentage of the business has enough cash flow to pay for the loan, and overall well-being as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll know precisely what you be required to pay, and when, from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You can make an application for loans with no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You can repay the entire amount of the loan at any point in time.
If you do decide to take this route, please contact our helpful company lending experts. They’ll provide you with details for repayment and an early payout figure. The figure will be calculated as the total of the principal amount remaining and accrued interest to the date of early payout and 1.5% of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To make sure you do not miss payment dates and to align with your cash flow general, we provide repayments 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 the ways we gather data, process, exchange and secure your information, is of huge 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 protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We make use of an advanced bank verification system link to immediately verify the bank account details online to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner utilises the assets they have to obtain a loan. The asset can be an individual property, such as the family home or an business asset such as a truck or piece or equipment.
The vast majority of the lenders even the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan then your asset may be offered for sale by the lender. In essence it is means of securing new financing by making use of the value of what you already have.
Do I need security to secure an company loan?
Up to $150K in loans the requirement for asset security is not required before you can access the money, however we do need a personal guarantee. So long as you comply with your loan commitments (as stated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150,000, generally there is the option of a personal guarantee and security in the form charges on assets.