FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wooloowin Small Business Loans
Let me know how you can avail the Wooloowin Small Business Loans
Wooloowin unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an traditional business loan?
You can apply to 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 the funds could be in your account within 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. The company loan is a cash-based loan which means you know ahead of time the total amount due, which includes the interest, fees and charges. Then, it is divided into weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business use, including managing cash flows, business improvements, advertising to purchase inventory, new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Wooloowin Business Loans
What is the Larger Wooloowin Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to be in operation for at least 3 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 of proving at minimum 12 months of business.
How can the funding be utilised?
A larger company loan can be used for nearly every company use, including company renovations, purchase of new equipment or inventory as well as for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. It is usually by taking a charge against assets, and may include the registration of this through the PPSR or registering as a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally in nature rather than stating the security of a specific asset. The person signing the guarantee is personally liable in the event that the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR permits priority over personal property to be granted in accordance with the date on which a security interest that is registered.
An affidavit is an official document that is filed to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000 it is possible to offer a preliminary pre-approval to help smooth out the process. It is possible to do this without a credit verification and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial well-being checks. This is not an offer or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you may receive may be on different conditions.
Application process
Do I qualify for funds?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form within a couple minutes, and a dedicated business expert in lending will contact you to assist you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we typically provide an answer within an hour – as long as you apply within standard company times and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements , we are able to provide the decision in as little as 1 business day.
If you are applying for a Larger Business Loan ($100K or more) we could be able to offer the conditional pre-approval within about six hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some offers have been approved in just 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours, and permit us to use the advance bank verification to verify your bank account information online. If you decide to upload the copies of bank statements it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we usually offer an answer within one hour, provided you submit your request within normal business timings and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements we can offer an answer in as little as 1 business day.
For the Larger Business Loans ($100K to $500K) We may be capable of provide you with conditional pre-approval within about 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 upon the circumstances for each application. Certain agreements have been approved in 24 hours.
The quickest method can be make sure you apply during standard business hours, and allow us to use our modern bank verification link to verify your bank information online. If you choose to upload duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of aspects in order to assess what is the well-being of the company as well as the amount of repayments that your company can afford. The amount you receive from the loan will be determined by the specifics of your company.
If you apply for a specific amount we look at a range of elements to determine how much we can lend you such as health that is your business as well as the amount of repayments your business can afford. The amount you receive from your loan will be contingent on the specifics for your business.
Fees & repayments
How much do you charge for an business loan?
When you apply for the company loans, we will assess the risk assessment of your company and provide you with a customised offer, including loan amount, term and the interest rates. It is a business loan is a loan that is priced upfront which means you know the exact amount due, which includes any charges or interest.
What determines the rate that I am charged?
Interest rates for business loans rates vary due to factors including the amount of money borrowed, the company assets the funds are used to purchase and the sector the business is operating in, how long the business is in operation as well as how long the company has enough cash flow to pay for the loan, as well as the general well-being or creditworthiness of the company.
What are the charges?
There are no hidden fees with our business loans. You’ll know exactly how much you need to pay and when, from the first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments punctually).
We don’t charge an Application Fee. You can apply for a loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you do decide to take this route, please speak to our friendly company loan experts. The specialists will provide you with repayment details and an early payout figure. The figure will be calculated as the sum of the principal remaining and any accrued interest at the date of early payout, plus 1.5 percent of the principal amount remaining and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payment dates and to align with your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about how we collect the information we collect, use, share and safeguard your data, 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 utilise industry-recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We utilise a sophisticated banking verification system to immediately verify the bank account details online, allowing us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses assets they own to make the funds for a loan. The asset could be an individual property, such as the family home, or it could be a business asset like a truck or other piece of machinery.
The majority of the lenders including the big banks, tend to secure loans against an asset. If you have trouble paying back the loan then your asset may be offered for sale by the lender. In essence it’s a way of securing new funding using the worth of the asset you already have.
What do I require security to get a company loan?
For loans that exceed $150K, there is no requirement for asset security prior to the loan’s access, however we require a personal guarantee. need the personal guarantee. In the event that you fulfill your loan commitments (as specified in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally, there is personal ensure and security is provided in the form of the charge of assets.