FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Windsor Downs Small Business Loans
Tell me what you think of the Windsor Downs Small Business Loans
Windsor Downs 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.
What makes what makes the Unsecured Loan different from an traditional business loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and funds may be on your account within 24 hours. Traditional business loans have an annual interest rate along with other charges and fees. We offer a company loan is a cash-based loan therefore you’ll know in advance the total amount due, which includes the interest, fees and charges. This is then broken down into either a daily or weekly installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business purpose including control of cash flow business remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
About larger Windsor Downs Business Loans
What is the Larger Windsor Downs Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your company needs to have been trading for at least 3 years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be utilised?
A larger business loan can be used for nearly all business reason, such as company renovations, to purchase equipment or inventory or as 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 needed to access funding over $150,000. It is usually in the form of a charge on assets, and could include registration on the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally in nature rather than specifying security over a particular asset. The person who is signing the ensure is personally accountable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR grants the priority of personal property granted according to the date the security interest was registered.
A caveat is a legal document filed to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan of more than $250K we may be able to provide a preliminary pre-approval to help smooth out the process. It is possible to make this decision without a credit verification and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial well-being questions. It is not an offer of credit or guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer that you might receive could be based on different conditions.
Application process
Do I have the right to receive funds?
You are eligible to apply for a company 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 demonstrate at minimum 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a couple minutes, and an experienced company expert in lending will contact you to guide you.
To apply for up to $100,000 you’ll need identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent twelve months of bank statements, IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within one hour – as long as you submit your request within standard company times and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements we can offer the decision in as little as an company day.
For the Larger Business Loan ($100K and up) we may be capable of offer you with conditional pre-approval within about six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within less than 24 hours.
The fastest way for you to apply is ensure you apply during standard company hours. You can also allow us to use the advance bank verification to check your bank’s information online. If you send us copies of your bank statements , it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within an hour if you apply at standard business times and you allow us to use the bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statements, we are able to offer an answer in as little as one business day.
For Larger Business Loans ($100K and up) we could be likely to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed the 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 deals have been approved within less than 24 hours.
The most effective method can be ensure you apply during normal business hours and permit us to use the advance bank verification link to confirm your bank details online. If you send us copies of your bank statements, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we will consider a number of factors to determine your well-being of the company as well as the amount of the repayments your company can afford. The total amount of your loan will depend on the specifics that are unique to your company.
When you apply for a set amount, we will consider a number of aspects to determine your health for your company as well as the amount of repayments your company will be able to support. The total amount of your loan will be determined by the specifics the business.
Fees & repayments
How do you charge for an business loan?
When you apply for our business financing, we’ll assess the risk assessment the business and offer you with a customised offer including loan amount, term and interest rates. It is a business loan is an upfront cost loan which means you be aware in advance of the total amount due, which includes any charges or interest.
What is the factor that determines the price I am charged?
Interest rates for business loans rates differ based on various variables like the amount to be of money borrowed, the business assets the money will be used for in addition to the industry that the business operates in, how long the company is in operation, what percentage of the business has enough cash flow to support the loan, and the general health or creditworthiness of the business.
What are the cost?
There aren’t any hidden costs with our business loans. You’ll be aware of the amount it is that you be required to pay and when, from the day you sign up. There’s no compounding interest and no extra fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to make an application for loans with with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan earlier?
You may choose to pay back the total amount of your loan at any point in time.
If you are deciding to pursue this option, please call our helpful company credit experts. The professionals will provide you with the details of your repayment and an early payment figure. It will be calculated using the total of the principal remaining plus any accrued interest as of the date of early payout in addition to 1.5% of the remaining principal and any outstanding fees.
What are the repayment methods?
To help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as secure your information, is of huge importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to customer security and security. We utilise a sophisticated bank verification system to immediately verify your bank account information online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner uses assets they own to secure the funding. The asset could be a personal asset like the family home or an business asset such as a vehicle or piece of equipment.
The vast majority of lenders, including the banks with the biggest size, prefer to secure 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’s an opportunity to secure additional financing using the value of what you already own.
Do I need security to secure a business loan?
Up to $150K in loans the requirement for asset security is not required in advance to gain access to the funds but we require a personal guarantee. need a personal guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150,000 generally, there is a personal ensure and security is provided in the form of a charge over assets.