FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Woodbine Small Business Loans
Let me know about the Woodbine Small Business Loans
Woodbine unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from an ordinary company loan?
Apply for this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and the money could be in your account in 24 hours. Traditional business loans have an annual rate of interest together with additional fees and charges. Our business loan is a pre-paid loan and you’ll know in advance the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business purpose including control of cash flow business improvements, advertising to purchase inventory, new equipment, or as general working capital and much more. The loan is not available for personal reasons.
About Larger Woodbine Business Loans
What is the Larger Woodbine Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion 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 to work with your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to be in operation for at least 3 years and have an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funds for?
A Larger Business Loan is a great option for almost any business use, including company renovations, to purchase equipment or inventory as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. This is in the form of a charge over assets, which could also include the registration of this through the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to repay a loan which is general in nature rather than stating security over an asset. The person signing the guarantee is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR permits preference over private property granted in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal form of document to offer notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans of $250,000 or more it’s possible to offer a preliminary pre-approval to help smooth out the process. It is possible to apply for this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial health checks. It’s not an offer of credit or guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you may receive may be based on different terms.
Application process
Do I qualify for funds?
You may apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in few minutes and a dedicated company credit specialist will be in touch to guide you.
To apply for up $100,000, you’ll need ID details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank records, IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we typically provide a response in one hour if you apply in standard company hours and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statements , we will be able to offer the decision within just one company day.
For the Larger Business Loan ($100K up to $500,000) we may be likely to offer the conditional pre-approval within about six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some agreements have been approved in the space of 24 hours.
The quickest way to apply is to make sure you apply during standard business hours. You can also allow us to use our advanced bank verification system to check your bank’s information online. If you decide to upload the copies of bank statements it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour – as long as you apply within normal business timings and permit us to use the bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statement, we’ll provide the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be able to provide you with conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The fastest method would be to make sure you apply during normal business hours. You can also let us use the advance bank verification link to instantly confirm your bank details online. If you decide to send us copies of your bank statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a particular amount, we consider a variety of factors for determining the well-being that is your business as well as the amount of the repayments your business can afford. The total amount of your loan will be contingent on the specific circumstances of your business.
When you submit an application for a particular amount, we look at a range of aspects to assess your health for your company and the extent of repayments that your business is able to afford. The amount you receive from the loan will be determined by the particular circumstances of your company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request one of our business loans, we will assess the risk assessment that you have for your business and provide you with a customised offer that includes the loan amount, the terms and interest rates. It is a business loan is an upfront cost loan and you’ll know the exact amount due, which includes any charges, interest rates or fees.
What determines the amount I will be charged?
Business loan interest rates differ based on various factors including the amount borrowed, what company assets the funds will be used for as well as the field the company operates in, the long the company has been in operation, what percentage of the company has enough cash flow to support the loan, and overall well-being or creditworthiness of the company.
What are the fees?
There aren’t any hidden charges with our business loans. You’ll know precisely what it is that you be required to pay and when, from the very first day. There’s not any compounding interest and no extra fees (as long as you make your payments in time).
We do not charge an Application Fee. You can request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I repay the loan earlier?
You can choose to repay the entire amount of your loan at any point in time.
If you choose to do this please talk to one of our helpful company loan experts. The experts will provide you with details on repayment and an early payout figure. This is calculated as the sum of the remaining principal amount and any accrued interest at the date of early payout, plus 1.5 percent of the principal amount remaining plus any outstanding fees.
How do repayments work?
To make sure that you don’t miss payments and to work your cash flow cycle we provide repayments either daily or weekly. 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 transparent about the ways we gather information, use it, and exchange it, as well as safeguard your data, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure 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 link to instantly verify your bank account details online to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner makes use of an asset they own to obtain a loan. The asset can be an individual asset, such as the family home, or it could be a business asset such as a vehicle as well as a piece of machine.
The majority of the lenders even the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan then the asset could be offered for sale by the lender. In essence, it is an opportunity to secure new financing by using the worth of the asset you already own.
Should I require security for a business loan?
Up to $150,000 in loans the requirement for asset security is not required in advance to gain access to the funds however, we require a personal guarantee. need an individual guarantee. So long as you comply with the loan terms (as stipulated in the loan contract), asset security is not required. For loans of over $150,000 generally, there is a personal guarantee and security is provided in the form of charges on assets.