FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Willawong Small Business Loans
Tell me what you think of the Willawong Small Business Loans
Willawong unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
You can apply to get the Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and the money could be on your account within 24 hours. Traditional company loans refer to an annual interest rate as well as other fees and charges. Our business loan is a loan that is priced upfront therefore you’ll be aware of the total amount payable including any fees, charges or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company use, including managing cash flows, company improvements, advertising to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
About Larger Willawong Business Loans
What is the Larger Willawong Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to be in operation for at least 3 years, and have an annual income of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be used for?
A Larger Business Loan is a great option for almost any company need, including company remodeling, buying equipment or inventory or as 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 required to obtain funding above $150,000. This is by taking a charge over assets, and could be registered with the PPSR or registering a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is general in nature, rather than defining the security for a particular asset. The person who signs the guarantee is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR grants the priority of personal property assigned in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal document filed to offer an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of $250K or more we can offer an initial pre-approval to ease the process. It is possible to apply for this without a credit check, and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial health checks. This is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you are offered could be based on different terms.
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, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a couple minutes, and an experienced business loan specialist will call you to assist you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we typically offer an answer within an hour – as long as you apply during standard company time and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to send us copies of your bank statement, we’ll provide the decision in just the span of one business day.
For Larger Business Loans ($100K and up) we may be capable of provide you with conditional pre-approval within about six hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some offers have been approved within the space of 24 hours.
The quickest method would be to make sure you apply during normal business hours. Also, permit us to use the modern bank verification link to confirm your bank details 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 to $100K) we usually provide an answer within one hour, provided you submit your request within standard business hours and let us use the bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements we can provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we might be able to offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Certain deals have been approved within less than 24 hours.
The fastest method can be ensure you apply during standard business hours and allow us to use the modern bank verification link to check your bank’s information online. If you choose to send us copies of your bank statements, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of variables in order to assess how much we can lend you well-being of your company and the extent of the repayments your company will be able to support. The total amount of your loan will be contingent on the specifics the business.
When you submit an application for a set amount, we will consider a number of variables to determine your well-being of the company and the level of the repayments your business can afford. The amount you receive from your loan will depend on the particulars for your company.
Fees & repayments
How much do you charge for an company loan?
When you make an application for our company loan, we will assess the risk profile that you have for your business and provide you with a customised proposal that includes the loan amount, the terms and the interest rates. The company loan is a loan that is priced upfront which means you know in advance the total amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Interest rates for business loans rates depend on several variables like the amount to be that is borrowed, what company assets the money are used to purchase in addition to the industry that the business is operating in, how long the business has been running and in the event that the business has sufficient cash flow to cover the loan, and also the overall health as well as creditworthiness company.
What are the cost?
There aren’t any hidden costs with our business loans. You’ll be aware of the amount you’ll need to pay, and at what time, from the day you sign up. There’s no compounding and no additional fees (as long as you are able to make your payments in time).
We do not charge an application fee. You can make an application for loans with no cost upfront or commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful business loans professionals. We will offer you with details on repayment and an early payment figure. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payment plus 1.5% of the remaining principal plus any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line your cash flow schedule, we provide payments that are either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing the ways we gather information, use it, and exchange it, as well as protect 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 make use of industry-standard encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to customer security and security. We employ an exceptionally sophisticated bank verification system that allows you to immediately verify your bank account details online so we can provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the company owner utilises an asset that they own to make the funds for a loan. The asset may be an individual property, such as the family home, or it could be a business asset such as a truck as well as a piece of machine.
The majority of banks, even the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then the asset could be offered for sale by the lender. In essence it is a way of securing additional financing using the value of what you already own.
Are I need security to secure a business loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds, however we do need a personal guarantee. As long as you follow your loan commitments (as specified in the loan contract), asset security will never be required. For loans that exceed $150,000, generally there is an individual ensure and security in the form of the charge of assets.