FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Len Waters Estate Small Business Loans
Let me know what you think of the Len Waters Estate Small Business Loans
Len Waters Estate unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
You can apply for this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and funds may be on your account within 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. We offer a company loan is a pre-paid loan and you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then divided into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business purpose including cash flow management, business renovations, marketing to purchase inventory, new equipment, to fund general working capital and much more. The loan is not available to fund personal expenses.
About the Larger Len Waters Estate Business Loans
What is the Larger Len Waters Estate Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to be in operation for at least 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be utilised?
A Larger Business Loan can be used for almost every business reason, such as business improvements, purchasing equipment or inventory as well as for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. This can be done in the form of a charge over assets, which could also include registering this in the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is general in nature rather than defining the security of a specific asset. The person who is signing the ensure is personally liable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date a security interest that is registered.
The caveat can be described as a formal document filed to provide an official notice of a claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger company loans that exceeds $250K it is possible to offer an initial pre-approval to ease the process. It is possible to get this done without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being questions. It’s not an offer of credit or guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer that you might receive could be on different conditions.
Application process
Do I qualify for funds?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and a dedicated business credit specialist will contact you to assist you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s License) and a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent, 12 months of bank statements, IRD statement, last 2 years finalised financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour – as long as you submit your request in standard business timings and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to submit copies of your bank statements , we are able to offer the decision within an company day.
For the Larger Business Loan ($100K and up) we may be in a position to provide the conditional pre-approval in around six hours. After you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some transactions have received approval in just 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. Also, allow us to use the advanced bank verification system to instantly verify your bank account information online. If you decide to upload documents from your account accounts, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer in just one hour – as long as you apply within standard business times and allow us to use the bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements we can offer the decision within 1 business day.
For Larger Business Loans ($100K or more) we may be likely to provide the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this can be faster depending upon the circumstances for each application. Some transactions have received approval in just 24 hours.
The quickest method would be to ensure you apply during standard business hours and permit us to use the advanced bank verification system link to verify your bank information online. If you choose to send us documents from your account statements it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a particular amount, we will consider a number of variables in order to assess what is the well-being for your business and the level of payments your business can afford. The amount you receive from 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 the well-being of the business and the amount of repayments your business can support. The amount you receive from your loan will be contingent on the specific circumstances for your business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to make an application for our business credit, we will assess the risk assessment the business and provide an individualised offer, including loan amount, term and the interest rates. It is a business loan is an upfront-priced loan which means you be aware of the total amount to be paid, including any charges or interest.
What is the basis for the rate I am charged?
Interest rates for company loans rates differ based on various variables like the amount to be that is borrowed, what business assets the money are used to purchase as well as the field the company operates in, the long the business has been operating as well as how long the business has sufficient cash flow to support the loan, as well as the general well-being or creditworthiness of the company.
What are the charges?
There are no hidden costs for our company loans, and you’ll know exactly how much it is that you be required to pay, and when, from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments punctually).
We do not charge an Application Fee. You can apply for a loan with with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back all of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful business credit professionals. The professionals will offer you with details for repayment as well as an early payout amount. It will be calculated using the sum of the principal balance and accrued interest to the time of early payout plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss payment dates and to align your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about how we collect the information we collect, use, share and ensure the security of your information is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive as well as financial 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 banking verification system to immediately confirm your bank account information online so we can offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner utilises an asset they own to secure the loan. The asset can be either an individual asset, such as the family home, or it could be a company asset such as a vehicle or other piece of machinery.
The majority of the lenders even the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset could be sold by the lender. In essence, it’s the process of securing new financing by using the value of what you already own.
Do I require security to secure an business loan?
For loans that exceed $150K, no asset security is required in advance to gain access to the funds, however we do need an individual guarantee. As long as you follow the loan terms (as stipulated in your loan contract) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150,000 typically, you will need the option of a personal guarantee and security is provided in the form of a charge over assets.