FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Westmere Small Business Loans
Tell me more about Westmere Small Business Loans
Westmere unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
Apply for your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and funds may be in your account within 24 hours. Traditional business loans have an annual interest rate plus other fees and charges. This company loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including any interest, fees or charges. This is then divided into weekly or daily payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business use, including the management of cash flow, company remodels and marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal use.
About Larger Westmere Business Loans
What is the Larger Westmere Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit of this size, your business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A large company loan is a great option for almost any company purpose including business renovations, purchase of new equipment or inventory, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It’s by way of charge against assets and can be registered on the PPSR or making as a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally based rather than specifying the security for a particular asset. The person who is signing the ensure is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal document filed to provide an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan of more than $250,000, we may offer an initial pre-approval to smooth out the process. We might be able to get this done without a credit verification and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health checks. It is not an offer or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer that you are offered could be subject to different conditions.
The application process
Do I qualify for funds?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form in just a few minutes, and an experienced business credit specialist will be in touch to help you.
To be eligible for up to $100,000 you’ll require proof of identity (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 also require:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we usually offer a response in one hour if you make your application in quality company hours and permit us to utilise the bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can offer an answer within the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we could be capable of provide you with conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Certain deals have been approved in the space of 24 hours.
The fastest way is to ensure you apply during normal business hours. You can also allow us to use the advanced bank verification system to instantly verify your bank account information online. If you choose to send us copies of your bank statements , it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we can often provide a response in one hour – as long as you make your application at normal business timings and let us make use of the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statements, we are able to offer the decision within the span of one business day.
For Larger Business Loans ($100K up to $500,000) we might be able to offer you with conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some deals have been approved in the space of 24 hours.
The most effective method for you to apply is ensure you apply during standard business hours. You can also allow us to use our modern bank verification link to verify your bank information online. If you opt to upload duplicates of your banking statements it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a specific amount we take into consideration a range of variables to determine your well-being of the company and the level of repayments that your company can afford. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your company.
When you submit an application for a set amount, we will consider a number of elements to assess how much we can lend you such as well-being of the company and the extent of repayments your company can support. The amount you receive from your loan will be determined by the specific circumstances of your company.
Fees & repayments
How do you charge for the cost of a business loan?
When you make an application for one of our company financing, we will assess the risk assessment that you have for your company and offer you with a tailored offer that includes loan amount, term and interest rates. It is a business loan is an upfront cost loan and you’ll be aware of the total amount payable including any charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for business loans rates depend on several factors including the amount borrowed, what company assets the money will be used for, the industry the company operates in, the long the company has been in operation for, what percentage of the business has sufficient cash flow to pay for the loan, and also the overall well-being or creditworthiness of the business.
What are the charges?
There aren’t any hidden costs for our business loans, and you’ll know exactly how much it is that you be required to pay and when, right from the very first day. There’s not any compounding interest and no additional fees (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 absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan in advance?
You can decide to repay the entire amount of the advance loan at any time.
If you decide to do this please call our helpful company lending experts. They will offer you with repayment details and an early payout figure. This is calculated as the total of the principal remaining and the accrued interest up to the time of early payment, plus 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To make sure you do not miss payment dates and to align with your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect the information we collect, use, share and secure your information, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their security. We use an advanced banking verification system to instantly verify your bank account details online so we can offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner makes use of assets they own to obtain the funds for a loan. The asset can be a personal asset like the family home or it could be a company property like a truck as well as a piece of machine.
The majority of lenders, even the major banks, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, the asset might be transferred to the lender. In essence, it is the process of securing additional financing making use of the value of what you already own.
Do I need security for an business loan?
For loans up to $150,000 there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. require an individual guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150,000, generally, you can get personal guarantee and security that is in the form the charge of assets.