FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Woodville Park Small Business Loans
Tell me about the Woodville Park Small Business Loans
Woodville Park unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from an traditional business loan?
The application for this Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and have the funds in your account in 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. Our business loan is a loan that is priced upfront and you’ll know in advance the total amount due, which includes any fees, charges or charges. This is then broken down into either weekly or daily payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company reason, such as control of cash flow business remodels and marketing to purchase inventory or new equipment, for general working capital, and much more. The loan is not available for personal reasons.
About the Larger Woodville Park Business Loans
What is the Larger Woodville Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan that is this large, your company needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be used for?
A larger business loan is a great option for almost all company purpose including company renovations, to purchase equipment or inventory as well as for general working capital and so much more. The loan cannot be used 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 on assets, which could also include registration in the PPSR or making a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is generally based rather than specifying security over an asset. The person signing the guarantee is personally accountable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR gives the priority of personal property granted depending on the date that 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?
When you’re applying for larger company loans of more than $250K we may be able to provide a preliminary pre-approval to help make the process. We may be able to do this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial well-being checks. It’s neither an offer nor a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you may receive may be subject to different terms.
Application process
Can I be eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and a dedicated company loan specialist will contact you to help you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) and a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within an hour – as long as you submit your request within quality business hours and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statements we can offer a decision within 1 business day.
For the Larger Business Loan ($100K and up) we may be in a position to provide you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be quicker based on the circumstances of each application. Certain deals have been approved within less than 24 hours.
The quickest way to apply is to ensure you apply during standard company hours, and allow us to use our modern bank verification link to instantly verify your bank information online. If you decide to upload duplicates of your banking statement, it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour – as long as you submit your request in standard business time and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we are able to provide an answer in just an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be likely to provide you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Some agreements have been approved within the space of 24 hours.
The fastest way would be to make sure you apply during standard business hours and permit us to use the sophisticated bank verification to confirm your bank details online. If you opt to upload documents from your account statements, it will take a little longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of elements for determining how much we can lend you health of the business and the level of the repayments your company can support. The total amount of the loan will be determined by the particular circumstances for your business.
When you make an application for a certain amount, we look at a range of factors to determine how much we can lend you such as health for your business as well as the amount of the repayments your business will be able to support. The amount you receive from your loan will depend on the particular circumstances the company.
Fees & repayments
How much do you charge for the cost of a company loan?
When you request business loans with us business financing, we will assess the risk assessment of your business and offer an individualised offer that includes loan amount, term and interest rates. The company loan is an upfront-priced loan therefore you will be aware of the total amount due, which includes any charges, interest rates or fees.
What determines the amount I’m charged?
The interest rates on company loans rates vary due to factors including the amount of money borrowed, the company assets the funds will be used for and the sector the business is operating in, how long the company has been operating for, whether the business has enough cash flow to cover the loan, and general well-being and creditworthiness of the company.
What are the charges?
There are no hidden fees with our business loans. You’ll know exactly how much it is that you need to pay, and when, right from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an application fee. You can apply for a loan with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated in establishing 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 pay out the loan in advance?
You can choose to repay the entire amount of your loan early at any time.
If you are deciding to take this route, please talk to one of our helpful company lending experts. The professionals will provide you with the details of your repayment and an early payout figure. This is calculated as the sum of the principal balance and the accrued interest up to the time of early payment in addition to 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide payments that are either daily or weekly. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect data, process, exchange and protect your information, is vital and an integral 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 sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We make use of an advanced bank verification system to instantly confirm your bank account information online. This allows us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an business owner uses assets they own to make the funds for a loan. The asset can be either an individual property, such as the family home or an business asset such as a vehicle as well as a piece of machine.
The majority of lending institutions, even the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan then the asset could be transferred to the lender. In essence, it’s a way of securing new financing by making use of the value of what you already own.
Are I require security for an business loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds, however we require a personal guarantee. require a personal guarantee. If you adhere to your loan obligations (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150K generally there is a personal ensure and security that is in the form charges on assets.