FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Waterford Small Business Loans
Tell me what you think of the Waterford Small Business Loans
Waterford unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional business loan?
You can apply to this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and funds may be on your account within 24 hours. Traditional company loans are based on an annual rate of interest together with additional fees and charges. Our business loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including the interest, fees and charges. Then, it is divided into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost any business reason, such as cash flow management, business remodeling, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
About Larger Waterford Business Loans
What is the Larger Waterford Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to have been in operation for at least 3 years, and have an annual income of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be utilised?
A larger company loan can be used for nearly all business reason, such as company renovations, to purchase new equipment or inventory or as 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 required for accessing funds over $150,000. This can be done as a result of an charge against assets and can be registered with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature rather than specifying security over a particular asset. The person who is signing the ensure is personally liable in the event that the business lender is not able to repay 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 gives the priority of personal property granted according to the date a security interest that is registered.
Caveats are legal document filed to provide the legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250K, we may offer an initial pre-approval to smooth out the process. It is possible to apply for this without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial well-being checks. It is not an offer of credit or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer that you may receive may be based on different conditions.
Application process
Are I eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (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 application process is quick and easy. Just fill out the online application within a few minutes and a dedicated business credit specialist will call you to guide you.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent twelve months of bank statements, IRD statement and the last two years’ finalised financial statements, plus interim current financial year financials as well as Aged Payables and Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) We can usually offer an answer within an hour if you apply during standard business hours and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statements , we are able to provide the decision in just one business day.
For the Larger Business Loan ($100K and up) we could be able to provide you with a conditional pre-approval within 6 hours. After you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this can be quicker based on the particular circumstances of each application. Some transactions have received approval within just 24 hours.
The quickest method can be ensure you apply during standard company hours and let us use the advanced bank verification system to instantly verify your bank account information online. If you choose to upload copies of your bank accounts, it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour – as long as you submit your request at normal business times and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements, we are able to offer an answer in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we may be able to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval, the turnaround time is 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 24 hours.
The fastest method can be ensure you apply during normal business hours and allow us to use the advance bank verification to verify your bank account information online. If you choose to upload the copies of bank statements it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a specific amount we will consider a number of aspects for determining how much we can lend you well-being that is your company and the level of the repayments your company can support. The total amount of the loan will be determined by the specifics the company.
When you apply for a certain amount, we look at a range of factors to assess how much we can lend you such as health that is your company and the extent of repayments that your business will be able to support. The total amount of your loan will be determined by the particular circumstances the company.
Fees & repayments
What is the cost for an company loan?
If you decide to request business loans with us business loans, we will assess the risk assessment for your company and offer an individualised offer that includes the amount of loan, the term and the interest rates. A company loan is an upfront-priced loan and you’ll know in advance the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I’m charged?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, the business assets the funds are used to purchase, the industry the company operates in, the long the company has been in operation for, what percentage of the company has enough cash flow to cover the loan, and general well-being or financial standing of the business.
What are the charges?
There aren’t any hidden costs for our company loans, and you’ll know precisely how much it is that you need to pay and when, starting from the very first day. There’s no compounding and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an application fee. You can make an application for loans absolutely no upfront cost and no the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of the loan in full at any time.
If you are deciding to do this please call our helpful business lending experts. The specialists will provide you with details on repayment along with an early payout estimate. It will be calculated using the sum of the principal remaining and any accrued interest at the time of early payout and 1.5 percent of the principal amount remaining plus any outstanding fees.
How do repayments work?
To make sure that you don’t miss repayments and to fit in with your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about how we collect information, use it, and exchange it, as well as ensure the security of your information is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We use an advanced bank verification system that allows you to instantly verify the bank account details online so we can provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an business owner makes use of an asset they own to make the funds for a loan. The asset could be an individual property, such as the family home or a company asset such as a vehicle or piece of equipment.
The majority of lenders, even the largest banks, are inclined to guarantee loans against an asset. If you have trouble paying back the loan, your assets could be sold by the lender. In essence it’s the process of securing new financing by taking advantage of the value of what you already own.
What do I need security to secure an business loan?
For loans of up to $150K, the requirement for asset security is not required upfront to access the money, however we do require a personal guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract) Asset security is not needed. For loans over $150,000 generally, you can get the option of a personal guarantee and security in the form of charges on assets.