FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wishart Small Business Loans
Tell me more about Wishart Small Business Loans
Wishart unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from a traditional business loan?
You can apply for this Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and have the funds in your account within 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. Our business loan is a loan that is priced upfront which means you know ahead of time the total amount payable including any interest, fees or charges. This is then divided into weekly or daily repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business need, such as cash flow management, business remodels and marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
About Larger Wishart Business Loans
What is the Larger Wishart Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been operating for at least three years with an annual turnover of $700,000. The applicant must also be 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 least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used for almost any business use, including company renovations, to purchase new equipment or inventory 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 for funding of more than $150,000. It’s by way of charge against assets, and may be registered in the PPSR or making as a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature rather than defining security over a particular asset. The person signing the ensure is personally liable in the event that the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be granted according to the date a security interest that is registered.
Caveats are legal document that is filed to provide the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
When you’re applying for larger business loans of more than $250,000 it is possible to offer a preliminary pre-approval to help ease the process. We could be able to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering some financial well-being checks. It’s neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you are offered could be on different conditions.
Application process
Do I have the right to receive funds?
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 company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Complete the online form within a few minutes and an experienced business lending specialist will call you to assist you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statement, last 2 years finalised financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically offer an answer within one hour – as long as you submit your request in standard company time and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you want to submit copies of your bank statements , we are able to offer the decision in as little as an company day.
For Larger Business Loans ($100K or more) we may be able to offer you with a conditional pre-approval in about six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Certain transactions have received approval in 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours and let us use the advanced bank verification system link to instantly verify your bank account information online. If you upload the copies of bank statements it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K or more) we can often offer a response in one hour – provided you apply at normal business time and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements we can offer the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we may be in a position to provide you with a conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain agreements have been approved within 24 hours.
The most efficient method would be to ensure you apply during normal business hours. Also, permit us to use the advance bank verification to verify your bank information online. If you choose to send us documents from your account accounts, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a particular amount, we look at a variety of factors for determining what is the well-being that is your company and the extent of repayments that your business is able to afford. The total amount of the loan will be determined by the specific circumstances that are unique to your company.
When you apply for a particular amount, we look at a range of elements to assess how much we can lend you such as health for your company and the level of payments your company can afford. The total amount of your loan will be determined by the particulars the business.
Fees & repayments
What is the cost for the cost of a business loan?
When you apply for one of our business financing, we will assess the risk profile that you have for your business and provide you with a tailored offer, including the amount of the loan, the duration and the interest rates. The company loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including any charges, interest rates or fees.
What determines the amount I will be charged?
Interest rates for business loans rates depend on a variety of variables like the amount to be borrowed, what business assets the money will be used for and the sector the business operates in, how long the business has been in operation and whether the business has sufficient cash flow to cover the loan, and also the general well-being and creditworthiness of the business.
What are the fees?
There are no hidden costs with our business loans. You’ll be aware of the amount you need to pay and when, right from the first day. There’s no compounding interest and there are no additional charges (as as you make your payments punctually).
We do not charge an Application Fee. You can get a cash loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can decide to repay the total amount of your loan at any point in time.
If you do decide to do this please speak to our friendly business lending experts. They will provide you with the details of your repayment and an early payout figure. The figure will be calculated as the sum of the principal remaining and accrued interest to the time of early payout and 1.5 percent of the principal amount remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being upfront about the ways we gather data, process, exchange and ensure the security of your information is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their security. We utilise a sophisticated bank verification system that allows you to immediately verify the bank account details online so we can provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner uses an asset they own to obtain a loan. The asset can be either a personal asset like the family home, or an company asset like a truck or piece of equipment.
The vast majority of lenders, including the major banks, prefer to secure loans against an asset. If you have trouble paying back the loan, then your assets could be transferred to the lender. In essence it is means of securing additional financing taking advantage of the value of what you already own.
What do I need security for an 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 require a personal guarantee. need a personal guarantee. If you adhere to the loan terms (as specified in your loan contract) the security of assets will never be required. For loans of over $150,000 generally there is the option of a personal ensure and security is provided in the form of the charge of assets.