FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Western Heights Small Business Loans
Tell me how you can avail the Western Heights Small Business Loans
Western Heights unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from an ordinary company loan?
Apply for this Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and the funds could be in your account within 24 hours. Traditional company loans reference an annual rate of interest together with additional fees and charges. The business loan is a loan that is priced upfront so you will be aware in advance of the total amount due, which includes any interest, fees or charges. This is then broken down into either weekly or daily payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company use, including the management of cash flow, company renovations, marketing for purchasing inventory or new equipment, for general working capital and so much more. The loan is not available for personal use.
About Larger Western Heights Business Loans
What is the Larger Western Heights Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the business needs to have been operating for at least three years, and have an annual income of $700K. It is necessary to 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 of proving at the least 12 months of operating.
How can the funds be utilised?
A Business Loan of a larger size can be used to fund almost every company use, including business renovations, purchase of new equipment or inventory as well as for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. It’s in the form of a charge on assets, and could include registration through the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is general in nature, rather than specifying security over an asset. The person who signs the ensure is personally accountable if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR permits preference over private property granted according to the date the security interest was registered.
An affidavit is an official document that is filed to offer the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan of $250K or more, we may offer an initial pre-approval that will help make the process. We might be able to apply for this without a credit check, and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial health checks. This is not an offer of credit or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be based on different terms.
The application process
Do I have the right to receive funds?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Complete the online form within a few minutes and an experienced business expert in lending will call you to guide you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s Licence), a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we usually offer a response in one hour, provided you submit your request in quality business timings and you allow us to use the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statements , we will be able to offer a decision in as little as 1 company day.
For the Larger Business Loan ($100K or more) we could be in a position to offer you with conditional pre-approval in around six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved in 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. Also, allow us to use the advanced bank verification system to check your bank’s information online. If you choose to upload the copies of bank statement, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer within an hour, provided you make your application in normal business times and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statement, we’ll offer a decision within one business day.
For Larger Business Loans ($100K to $500K) we might be able to provide the conditional pre-approval in around six hours. Once you’ve signed your 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. Certain transactions have received approval in less than 24 hours.
The fastest way is to make sure you apply during standard business hours and allow us to use our modern bank verification link to verify your bank account information online. If you decide to send us duplicates of your banking accounts, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of variables in order to assess your health of the company and the level of the repayments your business will be able to support. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your company.
When you make an application for a particular amount, we consider a variety of elements to assess the health of the company as well as the amount of repayments your company is able to afford. The total amount of your loan will depend on the particular circumstances of your business.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for one of our company loan, we’ll assess the risk assessment that you have for your business and offer an individualised offer that includes the amount of the loan, the duration and interest rates. It is a company loan is a loan that is priced upfront therefore you will be aware of the total amount payable including any charges or interest.
What determines the rate that I’m charged?
Business loan interest rates differ based on various factors such as the amount that is that is borrowed, what company assets the money are used to purchase in addition to the industry that the company is operating in, how long the company has been in operation, what percentage of the company has sufficient cash flow to cover the loan, and general well-being and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our company loans, and you’ll know precisely how much you’ll need to pay and when, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You are able to request a credit loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I repay the loan early?
You can decide to repay the total amount of your loan at any point in time.
If you do decide to pursue this option, please call our helpful business loans professionals. They’ll offer you with repayment details along with an early payout estimate. This is calculated as the sum of the principal balance and any accrued interest at the time of early payment, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
To make sure you do not miss due dates and also to be in line your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about the ways we gather data, process, exchange and ensure the security of your information is of paramount importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to security for our customers and security. We employ a highly sophisticated bank verification system link to immediately confirm your bank account information online to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the company owner utilises an asset they own to secure the loan. The asset may be a personal asset like the family home or a company asset like a truck or piece or equipment.
The majority of the lenders not just the banks with the biggest size, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan then the asset might be sold by the lender. In essence, it is means of securing new financing making use of the value of what you already own.
Should I need security to secure a business loan?
For loans that exceed $150K, no asset security is required in advance to gain access to the funds however, we do require the personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract) Asset security will never be needed. For loans that exceed $150,000, generally there is a personal guarantee and security is provided in the form of the charge of assets.