FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Willow Vale Small Business Loans
Tell me more about Willow Vale Small Business Loans
Willow Vale unsecured loans provides 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 how is the Unsecured Loan different from an ordinary business loan?
You can apply for this Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and the funds could be available in just 24 hours. Traditional business loans reference an annual interest rate along with other charges and fees. This business loan is an upfront priced loan which means you know ahead of time the total amount due, which includes any interest, fees or charges. This is then broken down into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost every business use, including control of cash flow company improvements, advertising to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
About the Larger Willow Vale Business Loans
What is the Larger Willow Vale Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the company needs to be trading for at least 3 years with an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be used for?
A larger company loan can be used for nearly all business reason, such as business improvements, purchasing new equipment or inventory or as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This is by way of charge on assets, and could be registered with the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally in nature rather than stating the security for a particular asset. The person signing the guarantee is personally liable in the event that the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted in accordance with the date on which a security interest that is registered.
A caveat is a legal form of document to provide the legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for larger business loans of $250,000 or more it is possible to offer a preliminary pre-approval to help simplify the process. We could be able to get this done without a credit verification and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial well-being questions. This is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer you receive could have different terms.
The application process
Do I qualify for funds?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the 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 easy. Complete the online form in few minutes and a dedicated business credit specialist will call you to guide you.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent twelve month bank accounts, the IRD statements and the last two years’ finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour – as long as you submit your request within standard company time and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statement, we’ll offer the decision in just the span of 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 have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this can be quicker based on the circumstances of each application. Certain deals have been approved within less than 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to verify your bank information online. If you choose to upload the copies of bank statements , it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we typically provide an answer in just one hour – as long as you make your application during standard business times and permit us to use the bank verification system to instantly verify your bank details online. If you choose to upload 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 and up) we could be able to offer you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain agreements have been approved within just 24 hours.
The fastest method is to make sure you apply during standard business hours and allow us to use the modern bank verification link to instantly verify your bank account information online. If you decide to send us duplicates of your banking statements, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount we will consider a number of elements for determining the well-being that is your business and the level of the repayments your company is able to afford. The total amount of the loan will be determined by the specifics of your business.
When you make an application for a set amount, we look at a range of elements to assess the health of the company and the amount of payments your company can afford. The total amount of your loan will be contingent on the particulars of your company.
Fees & repayments
How do you charge for an company loan?
When you apply for business loans with us business financing, we’ll assess the risk assessment of your business and provide you with a customised offer that includes the amount of loan, the term and the interest rates. The business loan is an upfront priced loan so you will know the exact amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
The interest rates on company loans rates depend on several factors like the amount of money that is borrowed, what business assets the money will be used for as well as the field the company operates in, the long the company has been operating, what percentage of the company has sufficient cash flow to cover the loan, and general health or financial standing of the company.
What are the cost?
There are no hidden fees with our business loans. You’ll know exactly how much it is that you need to pay, and at what time, from the first day. There’s no compounding and no additional fees (as long as you make your payments in time).
We don’t charge an application fee. You are able to make an application for loans without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan early?
You may choose to pay back the total amount of your advance loan at any time.
If you do decide to pursue this option, please call our helpful company lending professionals. We will offer you with repayment details and an early payment figure. It will be calculated using the total of the principal balance and accrued interest to the date of early payout and 1.5 percent of the remaining principal and any fees that remain unpaid.
How do repayments work?
To make sure you do not miss due dates and also to be in line your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear how we collect, use, exchange and secure your information, is crucial and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We utilise a sophisticated bank verification system link to immediately verify your bank account details online, allowing us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from the assets they have to make the funding. The asset could be an individual property, such as the family home or an company property like a truck or piece or equipment.
The majority of the lenders not just the big banks, tend 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 is a way of securing new financing using the worth of the asset you already have.
Are I need security for an business loan?
For loans of up to $150,000, the requirement for asset security is not required upfront to access the money However, we require a personal guarantee. need a personal guarantee. So long as you comply with your loan obligations (as detailed in the loan contract) and you are able to meet your obligations, asset security is not required. If you take out loans in excess of $150,000 typically, you will need a personal ensure and security in the form charges on assets.