FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Wonga Park Small Business Loans
Tell me more about Wonga Park Small Business Loans
Wonga Park unsecured loans offers amounts between $5,000 and $100,000. The terms range between 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 an ordinary business loan?
Apply to get your Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and funds may be in your account in 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. This company loan is an upfront priced loan therefore you’ll know in advance the total amount payable including any fees, interest or charges. This is then divided into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company purpose including cash flow management, company improvements, advertising for purchasing inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
About Larger Wonga Park Business Loans
What is the Larger Wonga Park 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 that can last up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the business needs to have been trading for at least 3 years and have an annual turnover of $700,000. It is necessary to 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 demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan can be used for nearly all business reason, such as company improvements, purchasing inventory or new equipment or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This can be done in the form of a charge against assets and can include registering this through the PPSR or filing a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature rather than stating security over an asset. The person who signs the guarantee is personally accountable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR gives preference over private property assigned in accordance with the date on which a registration of a security interest.
A caveat is a legal form of document to provide an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250K we can offer an initial pre-approval that will help simplify the process. We might be able to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial health questions. It is not an offer or guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could have different terms.
The 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 over the age of 18 and have 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 continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a couple minutes, and a dedicated business lending specialist will call you to guide you through the process.
To apply for up $100,000 you’ll require identification details (valid Driver’s License) as well as a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K and up) We can usually offer an answer within one hour, provided you apply in standard company hours and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can provide a decision within an company day.
If you are applying for a Larger Business Loan ($100K and up) we may be capable of offer you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this can be quicker based on the specifics of each application. Certain agreements have been approved within the space of 24 hours.
The most effective method is to ensure you apply during standard company hours. Also, permit us to use the advanced bank verification system link to verify your bank account information online. If you opt to upload copies of your bank accounts, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer in just one hour – provided you submit your request in normal business hours and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements, we will be able to offer an answer within the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be likely to provide you with a conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be faster depending on the specifics of each application. Some agreements have been approved in the space of 24 hours.
The most effective method can be make sure you apply during standard business hours. You can also permit us to use the advance bank verification link to instantly verify your bank information online. If you choose to send us copies of your bank statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a certain amount, we look at a variety of aspects that determine how much we can lend you well-being for your company as well as the amount of repayments that your company can afford. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
When you apply for a certain amount, we take into consideration a variety of variables to determine how much we can lend you such as health of the company and the extent of payments your company can support. The amount you receive from the loan will be determined by the particulars that are unique to your business.
Fees & repayments
How do you charge for an business loan?
When you request business loans with us business loans, we’ll assess the risk assessment of your company and offer you with a customised offer, including loan amount, term and interest rates. The company loan is a loan that is priced upfront so you will know the exact amount due, which includes any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
Interest rates for company loans rates vary due to factors like the amount of money of money borrowed, the company assets the funds will be used for, the industry the company is operating in, how long the business has been operating, whether the company has sufficient cash flow to support the loan, and general well-being and creditworthiness of the business.
What are the charges?
There are no hidden fees for our business loans. You’ll know exactly how much it is that you be required to pay and at what time, from the first day. There’s no compounding and no extra fees (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to get a cash loan with with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses 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% of the amount of the loan.
Can I repay the loan early?
You can repay all of your loan early at any time.
If you decide to do this please talk to one of our helpful business lending experts. The professionals will offer you with the details of your repayment and an early payment figure. This will be calculated as the sum of the principal remaining plus any accrued interest as of the time of early payment in addition to 1.5 percent of the principal balance and any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear the ways we gather information, use it, and exchange it, as well as secure your information, is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We use an advanced bank verification system that allows you to immediately verify your bank account details online, allowing us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the business owner utilises an asset that they own to secure the funding. The asset can be an individual asset, such as the family home or it could be a business asset like a truck or piece of equipment.
The majority of lending institutions, even the banks with the biggest size, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, then the asset could be transferred to the lender. In essence it is a way of securing new financing by using the value of what you already own.
What do I require security for a company loan?
For loans up to $150K it is not necessary to secure assets upfront to access the money, however we do require a personal guarantee. In the event that you fulfill the terms of your loan (as detailed in your loan contract document) Asset security is not needed. For loans over $150K generally, you are able to get an individual ensure and security in the form an asset charge.