FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Woody Point Small Business Loans
Tell me more about Woody Point Small Business Loans
Woody Point unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an ordinary business loan?
Apply for your Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and the funds could be available in just 24 hours. Traditional business loans have an annual rate of interest together with additional fees and charges. We offer a business loan is a loan that is priced upfront which means you be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into either a daily or weekly repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost any business purpose including the management of cash flow, business renovations, marketing to purchase inventory, new equipment, to fund general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Woody Point Business Loans
What is the Larger Woody Point Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit of this size the company needs to be trading for at least 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can the funding be used for?
A Larger Business Loan can be used for almost every company need, including business improvements, purchasing inventory or new equipment for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This can be done by way of charge over assets and can include registration with the PPSR or filing a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is general in nature, rather than stating security over a particular asset. The person who is signing the guarantee is personally liable in the event that 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 records security interests that have been registered in respect of personal property (including items or assets). The PPSR gives the priority of personal property granted in accordance with the date on which a security interest has been registered.
A caveat is a legal document that is filed to provide the legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more we can offer an initial pre-approval to smooth out the process. It is possible to apply for this without a credit check, and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial health questions. It is not an offer or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be based on different conditions.
Application process
Do I qualify for funds?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and a dedicated business expert in lending will contact you to assist you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll also require:
$100K-$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 twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials such as age-related payables and aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we typically offer an answer in just one hour if you apply at standard company timings and let us utilise the bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements we can offer an answer in just 1 company day.
For the Larger Business Loan ($100K to $500K) we may be capable of provide you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be quicker based on the specifics of each application. Some offers have been approved within the space of 24 hours.
The quickest method is to ensure you apply during normal company hours. You can also allow us to use our modern bank verification to instantly confirm your bank details online. If you opt to send us documents from your account statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) we usually offer a response in one hour if you submit your request during standard business time and let us use the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your bank statement, we’ll provide an answer in just the span of one business day.
For Larger Business Loans ($100K and up) we may be in a position to provide you with pre-approval conditional to your application within about six hours. Once you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Certain offers have been approved within the space of 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. You can also allow us to use the advance bank verification link to instantly check your bank’s information online. If you upload documents from your account accounts, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of factors in order to assess the health for your business and the amount of repayments your company will be able to support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
When you submit an application for a particular amount, we look at a range of aspects to assess the health that is your business as well as the amount of repayments that your company can afford. The total amount of your loan will be determined by the particular circumstances that are unique to your business.
Fees & repayments
How do you charge for an company loan?
When you request business loans with us business loans, we’ll assess the risk assessment of your company and offer an individualised offer, including the amount of the loan, the duration and the interest rates. A business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I’m charged?
The interest rates on business loans rates depend on several factors such as the amount that is borrowed, the company assets the funds are used to purchase, the industry the business is operating in, how long the business has been running for, how long the business has sufficient cash flow to fund the loan, as well as the general health or financial standing of the company.
What are the charges?
There aren’t any hidden charges with our company loans. You’ll know exactly how much you be required to pay and when, starting from the first day. There’s no compounding interest, and no extra fees (as as you make your payments in time).
We do not charge an Application Fee. You are able to apply for a loan with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay off the loan early?
You may choose to pay back the total amount of your loan at any point in time.
If you choose to pursue this option, please speak to our friendly company loan professionals. We will offer you with the details of your repayment as well as an early payout amount. This is calculated as the sum of the principal remaining and the accrued interest up to the time of early payment, plus 1.5% of the principal amount remaining and any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss payment dates and to align your cash flow schedule, we provide repayments either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing the ways we gather the information we collect, use, share and ensure the security of your information is of huge importance and is a crucial aspect 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 sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to customer security and security. We use an advanced bank verification system to immediately verify your bank account information online, allowing us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an company owner borrows from an asset they own to secure the funding. The asset could be a personal asset like the family home or an business property like a truck or piece or equipment.
The vast majority of the lenders including the big banks, tend to make loans secured by assets. If you have trouble paying back the loan then your asset may be taken over by the lender. In essence, it’s an opportunity to secure new financing by using the worth of the asset you already own.
Are I require security to get a business loan?
Up to $150,000 in loans it is not necessary to secure assets in advance to gain access to the funds however, we do require a personal guarantee. So long as you comply with your loan obligations (as stipulated in your loan contract document), asset security is not required. For loans over $150K generally there is a personal guarantee and security is provided in the form of an asset charge.