FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Westmere Small Business Loans
Tell me how you can avail the Westmere Small Business Loans
Westmere unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
The application to get your Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and the funds 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 an upfront priced loan therefore you’ll be aware in advance of the total amount due, which includes any fees, charges or charges. This is then divided into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business reason, such as managing cash flows, business remodeling, marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
About the Larger Westmere Business Loans
What is the Larger Westmere Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to be trading for at least 3 years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be utilised?
A Larger Business Loan can be used for almost every business use, including company improvements, purchasing inventory or new equipment for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is by taking a charge over assets, and could include the registration of this in the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally based rather than specifying the security for a particular asset. The person who is signing the guarantee is personally liable in the event that the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including items or assets). The PPSR permits priority over personal property to be assigned according to the date a registration of a security interest.
A caveat is a legal form of document to provide an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250K we can offer an initial pre-approval to smooth out the process. It is possible to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial health checks. It is not an offer or guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer you may receive may have different terms.
Application process
Can I be eligible for funding?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a few minutes and a dedicated company lending specialist will call you to assist you.
To apply for up to $100,000 you’ll need proof of identity (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we typically offer a response in one hour if you make your application at quality business timings and allow us to utilise the bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements , we are able to offer the decision within 1 company day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be capable of offer you with a conditional pre-approval within about six hours. After you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval, however this could be shorter based 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 standard company hours and permit us to use the advance bank verification link to instantly verify your bank information online. If you send us the copies of bank statements , it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer in just one hour, provided you submit your request in standard business hours and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements, we are able to offer the decision within the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be capable of provide you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain transactions have received approval within 24 hours.
The most effective method is to ensure you apply during normal business hours. Also, let us use the advance bank verification to instantly confirm your bank details online. If you upload the copies of bank statements, it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you make an application for a particular amount, we look at a variety of aspects to determine your health that is your company as well as the amount of repayments that your company is able to afford. The total amount of the loan will be determined by the particular circumstances the business.
When you submit an application for a particular amount, we consider a variety of variables to determine the health of the company as well as the amount of payments your company is able to afford. The amount you receive from your loan will be determined by the specifics that are unique to your company.
Fees & repayments
How do you charge for the cost of a company loan?
When you request business loans with us business financing, we’ll assess the risk assessment the business and offer an individualised offer, including the loan amount, the terms and the interest rates. The company loan is an upfront-priced loan so you will know in advance the total amount to be paid, including any charges or interest.
What determines the amount I am charged?
Business loan interest rates depend on several factors like the amount of money of money borrowed, the business assets the money are used to purchase, the industry the business operates in, the long the business has been operating, whether the business has enough cash flow to support the loan, as well as the general health or creditworthiness of the company.
What are the fees?
There are no hidden fees for our business loans, and you’ll be aware of the amount it is that you be required to pay and when, from the very first day. There’s no compounding and no additional fees (as long as you are able to make your payments in time).
We do not charge an application fee. You are able to make an application for loans absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan earlier?
You can repay all of your loan early at any time.
If you do decide to do this please speak to our friendly company loan professionals. We will provide you with details on repayment as well as an early payout amount. It will be calculated using the sum of the principal balance plus any accrued interest as of the time of early payment and 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
To ensure you do not miss repayments and to fit in your cash flow schedule, we offer repayments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and safeguard your data, is of huge 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 as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We employ an exceptionally sophisticated bank verification system link to instantly verify your bank account information online, allowing us to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a business owner borrows from an asset they own to get the loan. The asset can be an individual property, such as the family home, or a company property like a truck or piece of equipment.
The vast majority of banks, including the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, then the asset might be taken over by the lender. In essence it is a way of securing new financing using the value of what you already own.
Should I need security to get an company loan?
For loans up to $150,000 the requirement for asset security is not required in advance to gain access to the funds however, we do need the personal guarantee. As long as you follow the loan terms (as stipulated in your loan contract document) Asset security is not required. For loans of over $150,000 generally, you can get personal guarantee and security in the form of a charge over assets.