FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the West Harbour Small Business Loans
Let me know how you can avail the West Harbour Small Business Loans
West Harbour unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to get this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an answer within the same day and the money could be in your account within 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. The company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company purpose including the management of cash flow, business improvements, advertising for purchasing inventory or new equipment, or as general working capital, and much more. The loan cannot be used for personal use.
About Larger West Harbour Business Loans
What is the Larger West Harbour Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been in operation for at least 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used for nearly any company reason, such as business improvements, purchasing equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. It’s by taking a charge over assets, which could also include registering this on the PPSR or filing a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally based rather than stipulating security over a particular asset. The person who signs the guarantee is personally responsible if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR gives priority over personal property to be assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document that is filed to provide the legal claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan of more than $250K, we may offer an initial pre-approval in order to make the process. We might be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves you answering a few financial health questions. It is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be on different conditions.
The application process
Do I qualify for funds?
You may apply for an 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)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a few minutes and a dedicated business loan specialist will call you to assist you.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s License) and an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent twelve months of bank statements, IRD statements, last 2 years finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer in just one hour – as long as you submit your request within quality business timings and let us utilise the bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements , we are able to offer a decision within just one company day.
For Larger Business Loans ($100K and up) we may be able to provide the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval within less than 24 hours.
The fastest way is to make sure you apply during normal company hours, and permit us to use the advanced bank verification system to instantly check your bank’s information online. If you choose to send us documents from your account statements , it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within an hour – provided you submit your request during normal business time and permit us to use the bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statements, we are able to offer a decision in just an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be in a position to offer the conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some transactions have received approval within less than 24 hours.
The fastest way would be to make sure you apply during standard business hours and let us use the modern bank verification to verify your bank information online. If you decide to upload documents from your account accounts, it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of aspects to determine what is the health of your business and the amount of repayments your business is able to afford. The total amount of your loan will be contingent on the specific circumstances of your company.
When you submit an application for a particular amount, we will consider a number of elements to assess the well-being for your business and the extent of repayments your company can afford. The amount you receive from your loan will be contingent on the particular circumstances for your company.
Fees & repayments
How much do you charge for an business loan?
When you apply for the business loan, we’ll assess the risk assessment for your business and offer you with a customised offer including loan amount, term and the interest rates. The business loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on several factors such as the amount that is borrowed, what business assets the money will be used for in addition to the industry that the business is in, how long the business has been in operation as well as whether the business has enough cash flow to pay for the loan, and also the overall well-being as well as creditworthiness business.
What are the cost?
There are no hidden fees with our business loans, and you’ll know exactly how much it is that you need to pay and when, right from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you 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 obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can repay the entire amount of your loan at any point in time.
If you are deciding to take this route, please talk to one of our helpful company loans experts. They’ll provide you with the details of your repayment as well as an early payout amount. The figure will be calculated as the total of the principal balance and accrued interest to the time of early payment in addition to 1.5 percent of the principal remaining and any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow schedule, we provide repayments either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about the ways we gather, use, exchange and safeguard your data, is crucial and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We make use of an advanced bank verification system link to immediately verify the bank account details online to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner uses the assets they have to secure a loan. The asset could be an individual asset, such as the family home or an company property like a truck as well as a piece of machine.
The majority of lending institutions, including the major banks, prefer to make loans secured by assets. If you’re having trouble paying back the loan, the asset might be transferred to the lender. In essence, it’s means of securing new financing taking advantage of the value of what you already own.
Should I need security to get a business loan?
For loans that exceed $150,000, the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need an individual guarantee. As long as you follow your loan obligations (as detailed in your loan contract) the security of assets will never be required. If you take out loans in excess of $150K generally there is the option of a personal ensure and security that is in the form an asset charge.