FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Wollstonecraft Small Business Loans
Let me know more about Wollstonecraft Small Business Loans
Wollstonecraft unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from a traditional business loan?
Apply for your Small Business Loan in under 10 minutes online or by phone. You will receive an immediate response, and the money could be available in just 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. This company loan is a loan that is priced upfront which means you be aware of the total amount due, which includes any fees, charges or charges. This is then divided into a daily or weekly installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any company reason, such as the management of cash flow, company improvements, advertising to purchase inventory or new equipment, for general working capital, and much more. The loan is not available for personal use.
About Larger Wollstonecraft Business Loans
What is the Larger Wollstonecraft Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5% 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 generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funds be utilised?
A Larger Business Loan can be used to fund almost all company need, including company renovations, purchase of new equipment or inventory, as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This is by way of charge on assets, and could include registration in the PPSR or registering a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is general in nature rather than specifying the security for a particular asset. The person who is signing the ensure is personally accountable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR grants priority over personal property to be granted according to the date a security interest has been registered.
Caveats are legal form of document to provide notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more, we may offer an initial pre-approval in order to ease the process. We could be able to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial well-being checks. This is not an offer of credit or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you might receive could be based on different terms.
The 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, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a few minutes and a dedicated business credit specialist will call you to guide you through the process.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent and 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour – as long as you submit your request at standard company times and permit us to utilise the bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statements , we are able to provide an answer in as little as an business day.
For Larger Business Loans ($100K and up) we might be capable of provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some offers have been approved in less than 24 hours.
The most effective method can be make sure you apply during standard company hours and let us use the modern bank verification link to instantly confirm your bank details online. If you choose to send us 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 usually offer a response in one hour, provided you make your application in normal business hours and allow us to use the bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statement, we’ll provide a decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of provide you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Some deals have been approved in the space of 24 hours.
The quickest method can be ensure you apply during standard business hours and allow us to use our modern bank verification to check your bank’s information online. If you opt to upload copies of your bank statement, it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a certain amount, we look at a variety of variables to determine the well-being that is your company as well as the amount of repayments that your company will be able to support. The total amount of your loan will be contingent on the specific circumstances of your business.
When you apply for a set amount, we consider a variety of factors to assess the well-being of your business and the level of repayments your business is able to afford. The amount you receive from your loan will depend on the particulars for your company.
Fees & repayments
How much do you charge for a business loan?
When you apply for the company credit, we’ll assess the risk profile of your company and provide you with a tailored offer including the loan amount, the terms and the interest rates. It is a company loan is an upfront cost loan which means you be aware in advance of the total amount payable including any interest rates, fees or charges.
What is the basis for the rate I will be charged?
The interest rates on business loans rates depend on several factors such as the amount that is of money borrowed, the business assets the funds will be used for and the sector the business operates in, how long the business has been running and whether the company has sufficient cash flow to pay for the loan, as well as the general well-being or financial standing of the company.
What are the cost?
There are no hidden costs for our business loans. You’ll know precisely how much it is that you be required to pay and when, starting from the day you sign up. There’s no compounding and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an application fee. You can make an application for loans with with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay out the loan in advance?
You can choose to repay the entire amount of your loan at any point in time.
If you choose to pursue this option, please contact our helpful company loan experts. We will provide you with repayment details along with an early payout estimate. The figure will be calculated as the total of the principal amount remaining and any accrued interest at the time of the early payout plus 1.5% of the principal remaining and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payment dates and to align with your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about how we collect data, process, exchange and secure your information, is vital and a vital element 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 personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We utilise a sophisticated bank verification system to immediately verify the bank account details online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from an asset they own to obtain a loan. The asset can be either an individual property, such as the family home, or it could be a business asset such as a truck or piece or equipment.
The majority of lenders, not just the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, your asset may be offered for sale by the lender. In essence it’s means of securing new financing making use of the value of what you already have.
Are I require security to get an company loan?
For loans that exceed $150,000, there is no requirement for asset security upfront to access the money, however we do need an individual guarantee. If you adhere to the terms of your loan (as stated in the loan contract) and you are able to meet your obligations, asset security is not required. For loans over $150,000 generally, there is a personal guarantee and security in the form of an asset charge.