FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Waterview Small Business Loans
Tell me about the Waterview Small Business Loans
Waterview unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
You can apply to this Small Business Loan in under 10 minutes via the internet or by phone. You will receive a same day response and funds may be in your account in 24 hours. Traditional business loans refer to an annual rate of interest together with additional fees and charges. We offer a business loan is a cash-based loan which means you know ahead of time the total amount to be paid, including any fees, interest or charges. This is then divided into weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company purpose including cash flow management, business remodeling, marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan is not available for personal reasons.
About Larger Waterview Business Loans
What is the Larger Waterview Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to have been operating for a minimum of 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can the funds be used for?
A larger company loan is a great option for almost every company need, including company improvements, purchasing inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is in the form of a charge against assets and can include registering this with the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally in nature rather than stating security over a particular asset. The person who signs the ensure is personally liable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including items or assets). The PPSR allows the priority of personal property granted according to the date the security interest that is registered.
An affidavit is an official document lodged to provide an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250,000 we may be able to provide an initial pre-approval to simplify 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 process is based on an initial assessment, which involves answering a couple of financial health questions. It is neither an offer nor a guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer you are offered could be on different conditions.
Application process
Are I eligible for funding?
You may apply for an business 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 prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form within a couple minutes, and a dedicated business lending specialist will be in touch to guide you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually provide an answer in just one hour if you submit your request within standard business time and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements , we are able to offer the decision in just one company day.
For Larger Business Loans ($100K and up) we might be likely to provide the conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Some deals have been approved in less than 24 hours.
The quickest method is to ensure you apply during normal company hours and allow us to use our advance bank verification to instantly verify your bank account information online. If you decide to upload copies of your bank accounts, it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we can often provide a response in one hour – as long as you apply within normal business time and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statements, we are able to offer a decision within one business day.
If you are applying for Larger Business Loans ($100K and up) we may be in a position to provide the conditional pre-approval in about 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved in the space of 24 hours.
The fastest way would be to make sure you apply during standard business hours, and let us use the advance bank verification to instantly confirm your bank details online. If you opt to upload the copies of bank statement, it can take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a certain amount, we will consider a number of aspects to determine what is the well-being that is your business as well as the amount of repayments that your business is able to afford. The amount you receive from the loan will be determined by the specific circumstances for your business.
When you apply for a particular amount, we will consider a number of factors to determine the health of your company as well as the amount of the repayments your company will be able to support. The amount you receive from your loan will be determined by the specifics of your company.
Fees & repayments
How do you charge for the cost of a company loan?
When you apply for one of our company loan, we’ll assess the risk profile that you have for your business and offer you with a customised offer that includes the amount of the loan, the duration and the interest rates. The business loan is a loan that is priced upfront so you will know in advance the total amount to be paid, including any charges or interest.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates vary due to factors including the amount that is borrowed, what company assets the funds will be used for as well as the field the company operates in, how long the business has been running and in the event that the company has enough cash flow to support the loan, and the overall health or financial standing of the business.
What are the charges?
There aren’t any hidden charges with our company loans. You’ll be aware of the amount it is that you be required to pay, and when, from the very first day. There’s not any compounding interest and no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to request a credit loan with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you proceed with 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 in advance?
You can choose to repay the total amount of your loan in full at any time.
If you are deciding to take this route, please contact our helpful business loan experts. They’ll offer you with repayment details and an early payment figure. This is calculated as the total of the principal remaining and any accrued interest at the time of early payment plus 1.5 percent of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work with your cash flow general, we provide payments that are either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being upfront about the ways we gather the information we collect, use, share and secure your information, is of paramount 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 protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We use an advanced bank verification system link to instantly confirm your bank account information online so we can provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner utilises the assets they have to secure the funds for a loan. The asset can be an asset belonging to the personal, like the family home, or an company asset such as a vehicle or piece of equipment.
The vast majority of lending institutions, not just the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, your assets could be sold by the lender. In essence it’s an opportunity to secure new funding using the worth of the asset you already own.
Should I need security for a business loan?
For loans of up to $150,000, there is no requirement for asset security in advance to gain access to the funds However, we do need the personal guarantee. So long as you comply with your loan obligations (as specified in your loan contract document) Asset security will never be needed. For loans that exceed $150,000, generally, there is an individual ensure and security is provided in the form of charges on assets.