FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wungong Small Business Loans
Let me know what you think of the Wungong Small Business Loans
Wungong unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
The application to get your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an answer within the same day and funds may be in your account in 24 hours. Traditional business loans have an annual rate of interest along with other charges and fees. Our business loan is an upfront priced loan so you will know in advance the total amount payable including any interest, fees or charges. Then, it is divided into weekly or daily payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business need, such as cash flow management, business improvements, advertising to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
About the Larger Wungong Business Loans
What is the Larger Wungong Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been operating for at least three years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can the funds be used for?
A larger business loan can be used for nearly any business purpose including company improvements, purchasing equipment or inventory for 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 necessary to access funding over $150,000. This is in the form of a charge against assets and can include registering this on the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than specifying the security for a particular asset. The person who signs the guarantee is personally liable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including items or assets). The PPSR grants the priority of personal property granted in accordance with the date on which a security interest that is registered.
A caveat is a legal document that is filed to offer an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger company loans that is greater than $250K we may be able to provide an initial pre-approval that will help simplify the process. We may be able to do this without a credit check, and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial well-being questions. This is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could have different terms.
The application process
Are I eligible for funding?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six 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 application process is fast and simple. Simply complete the online form in few minutes and a dedicated company expert in lending will contact you to assist you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s License) as well as a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) We can usually offer an answer in just one hour if you make your application within standard business times and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statement, we’ll offer the decision within one company day.
For the Larger Business Loan ($100K to $500K) we may be likely to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be quicker based on the specifics of each application. Certain offers have been approved within just 24 hours.
The most efficient method for you to apply is make sure you apply during normal company hours. Also, permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you choose to send us the copies of bank statements , it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we usually provide a response in one hour – as long as you make your application within normal business timings and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements, we will be able to provide an answer in as little as an business day.
For the Larger Business Loans ($100K up to $500,000) we might be able to offer you with conditional pre-approval within six hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some offers have been approved in just 24 hours.
The fastest method would be to make sure you apply during standard business hours. You can also permit us to use the modern bank verification link to verify your bank account information online. If you decide to upload the copies of bank accounts, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of factors in order to assess the health of the business as well as the amount of the repayments your company will be able to support. The amount you receive from your loan will depend on the specifics that are unique to your company.
If you apply for a specific amount we will consider a number of elements to determine your well-being that is your company and the amount of the repayments your business is able to afford. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
What is the cost for the cost of a business loan?
When you make an application for one of our company credit, we will assess the risk profile that you have for your business and offer you with a customised offer, including the amount of the loan, the duration and interest rates. It is a business loan is an upfront cost loan therefore you will know in advance the total amount payable including any charges, interest rates or fees.
What determines the amount I’m charged?
The interest rates on company loans rates depend on several variables like the amount to be borrowed, what business assets the funds will be used for in addition to the industry that the company is in, how long the business has been running for, how long the business has enough cash flow to support the loan, and the overall health or financial standing of the business.
What are the costs?
There are no hidden costs for our company loans, and you’ll know precisely how much it is that you be required to pay and when, right from day one. There’s no compounding interest and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to apply for a loan with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay off the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you do decide to pursue this option, please contact our helpful company lending specialists. They will provide you with details on repayment and an early payment figure. This will be calculated as the sum of the principal remaining and any accrued interest at the time of the early payout in addition to 1.5% of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To ensure you do not miss repayments and to fit in with your cash flow general, we provide payments that are either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about how we collect information, use it, and exchange it, as well as ensure the security of your information is crucial and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We employ an exceptionally sophisticated bank verification system to instantly verify your bank account details online, allowing us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner makes use of an asset that they own to obtain a loan. The asset can be a personal asset like the family home or an company asset like a truck or piece of equipment.
The vast majority of the lenders including the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan, then the asset could be sold by the lender. In essence it is an opportunity to secure new funding taking advantage of the value of what you already own.
Are I require security for an company loan?
Up to $150K in loans there is no requirement for asset security in advance to gain access to the funds, however we do need the personal guarantee. As long as you follow your loan commitments (as stated in your loan contract document) the security of assets is not required. If you take out loans in excess of $150,000 generally, there is an individual ensure and security that is in the form the charge of assets.