FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Willetton Small Business Loans
Tell me what you think of the Willetton Small Business Loans
Willetton unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
Apply for your Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and have the funds in your account within 24 hours. Traditional business loans are based on an annual interest rate plus other fees and charges. The business loan is an upfront priced loan and you’ll be aware in advance of the amount you will have to pay, including the interest, fees and charges. This is then divided into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost every company reason, such as cash flow management, business remodels and marketing for purchasing inventory or new equipment, or as general working capital and so much more. The loan is not available for personal use.
Concerning Larger Willetton Business Loans
What is the Larger Willetton Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to have been in operation for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can the funding be used for?
A larger company loan can be used for almost every business use, including company renovations, to purchase inventory or new equipment for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. It’s by taking a charge over assets and can include the registration of this with the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to repay credit that is general in nature rather than defining security over an asset. The person who signs the guarantee is personally accountable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR allows the priority of personal property assigned according to the date a security interest was registered.
Caveats are legal document that is filed to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250K it is possible to offer an initial pre-approval to ease the process. We could be able to get this done without a credit check and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering some financial health questions. It is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you may receive may be based on different terms.
The application process
Are I eligible for funding?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a few minutes and an experienced company expert in lending will call you to assist you.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent and 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim current financial year financials as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often offer an answer within an hour, provided you make your application in standard business time and let us use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements , we’ll be able to offer a decision in just 1 business day.
For Larger Business Loans ($100K up to $500,000) we might be in a position to provide you with conditional pre-approval within about six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved within 24 hours.
The quickest method would be to ensure you apply during standard company hours. Also, allow us to use our advanced bank verification system to instantly check your bank’s information online. If you decide to upload the copies of bank statement, it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer within an hour if you apply at normal business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements we can offer an answer within one business day.
If you are applying for Larger Business Loans ($100K or more) we might be able to provide you with conditional pre-approval within 6 hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval within less than 24 hours.
The quickest method is to make sure you apply during normal business hours. Also, allow us to use our sophisticated bank verification link to instantly confirm your bank details online. If you choose to upload copies of your bank statements it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we take into consideration a range of variables for determining your health of the company and the extent of repayments that your business is able to afford. The total amount of your loan will depend on the particular circumstances of your company.
When you apply for a particular amount, we take into consideration a variety of factors to assess the well-being of your business and the extent of the repayments your company is able to afford. The total amount of your loan will be determined by the particular circumstances of your company.
Fees & repayments
How much should you charge for a business loan?
If you decide to apply for business loans with us business financing, we’ll assess the risk assessment that you have for your business and provide you with a customised offer including the loan amount, the terms and interest rates. The company loan is an upfront cost loan and you’ll be aware of the total amount payable including any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
Business loan interest rates differ based on various factors including the amount that is borrowed, what company assets the money will be used for as well as the field the business operates in, the long the company is in operation as well as what percentage of the company has enough cash flow to fund the loan, as well as the general health as well as creditworthiness business.
What are the fees?
There aren’t any hidden charges with our company loans, and you’ll be aware of the amount you’ll need to pay and when, starting from the day you sign up. There’s no compounding and there are no additional charges (as as you make your payments punctually).
We don’t charge an application fee. You can apply for a loan without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay off the loan early?
You can repay the entire amount of the loan at any point in time.
If you decide to take this route, please call our helpful business credit experts. They’ll offer you with the details of your repayment and an early payment figure. This is calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payment in addition to 1.5% of the remaining principal plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work with your cash flow general, we provide repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear the ways we gather, use, exchange and secure your information, 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 standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and security. We employ an exceptionally sophisticated banking verification system to immediately verify the bank account details online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner makes use of an asset they own to obtain the funding. The asset may be a personal asset like the family home or it could be a company asset like a truck or piece or equipment.
The majority of the lenders including the major banks, prefer to make loans secured by assets. If you’re having trouble paying back the loan, then your assets could be sold by the lender. In essence it’s an opportunity to secure new financing by using the worth of the asset you already have.
What do I need security to secure a company loan?
For loans up to $150,000 no asset security is required upfront to access the money However, we require a personal guarantee. need an individual guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract document) Asset security is not required. For loans of over $150K generally, you can get an individual ensure and security in the form of charges on assets.