FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Woody Point Small Business Loans
Tell me what you think of the Woody Point Small Business Loans
Woody Point unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from the traditional company loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and funds may be in your account within 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. We offer a company loan is a pre-paid loan so you will be aware in advance of the total amount payable including any interest, fees or charges. This is then divided into a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business use, including control of cash flow business renovations, marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal purposes.
About the Larger Woody Point Business Loans
What is the Larger Woody Point 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 fixed-term for up to 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible 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. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used for almost all company need, including company remodeling, buying equipment or inventory as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is in the form of a charge over assets, and may include the registration of this on the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally based rather than stipulating security over a particular asset. The person signing the guarantee is personally accountable if the company lender is not able 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 records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR grants preference over private property granted in accordance with the date on which a security interest has been registered.
An affidavit is an official document lodged to offer notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan of $250,000 or more we can offer a preliminary pre-approval to help make the process. It is possible to do this without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial well-being questions. It’s not an offer of credit or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer you receive could be on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 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 simple and simple. Just fill out the online application within a couple minutes, and a dedicated company credit specialist will contact you to guide you.
To apply for up $100,000 you’ll require ID details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Information on the application including credit consent and 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we can often offer an answer within an hour if you apply during standard company hours and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statement, we’ll offer an answer within 1 business day.
For Larger Business Loans ($100K or more) we could be in a position to provide the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some deals have been approved in 24 hours.
The quickest way to apply can be make sure you apply during normal company hours and permit us to use the modern bank verification link to verify your bank information online. If you choose to upload duplicates of your banking statement, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer a response in one hour, provided you apply within standard business timings and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statement, we’ll provide the decision in just one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be capable of provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval in just 24 hours.
The fastest way is to make sure you apply during normal business hours, and allow us to use the advance bank verification to instantly check your bank’s information online. If you decide to send us duplicates of your banking accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we look at a variety of variables for determining your health for your company and the amount of payments your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances for your company.
When you submit an application for a particular amount, we consider a variety of factors to determine how much we can lend you such as well-being for your business as well as the amount of repayments your company is able to afford. The total amount of your loan will be contingent on the particular circumstances for your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to make an application for our company financing, we will assess the risk assessment of your business and provide an individualised offer including loan amount, term and the interest rates. A company loan is an upfront priced loan and you’ll be aware of the total amount payable including any interest rates, fees or charges.
What is the basis for the rate I’m charged?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, the company assets the funds will be used for in addition to the industry that the company is operating in, how long the business has been in operation, in the event that the business has enough cash flow to support the loan, as well as the overall well-being as well as creditworthiness business.
What are the fees?
There aren’t any hidden costs for our company loans. You’ll know exactly how much you’ll be required to pay, and at what time, from day one. There’s no compounding interest and no extra fees (as long as you make your payments on time).
We do not charge an application fee. You are able to make an application for loans with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan early?
You can decide to repay all of your advance loan at any time.
If you choose to do this please contact our helpful company credit specialists. The professionals will offer you with the details of your repayment and an early payout figure. This is calculated as the sum of the principal balance plus any accrued interest as of the date of early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To make sure you do not miss repayments and to fit in your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing how we collect, use, exchange and secure your information, is vital and an integral element 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 financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We utilise a sophisticated banking verification system to immediately verify your bank account information online to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from assets they own to obtain a loan. The asset may be a personal asset like the family home or an business property like a truck or other piece of machinery.
The vast majority of lending institutions, even the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, your asset may be taken over by the lender. In essence, it’s the process of securing new funding using the worth of the asset you already own.
What do I require security to secure a business loan?
Up to $150,000 in loans the requirement for asset security is not required before you can access the money but we do require a personal guarantee. If you adhere to the terms of your loan (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150K typically, you will need personal guarantee and security in the form of an asset charge.