FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wandi Small Business Loans
Tell me about the Wandi Small Business Loans
Wandi unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an ordinary company loan?
It is possible to apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and have the funds in your account in 24 hours. Traditional company loans reference an annual rate of interest along with other charges and fees. This company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount to be paid, including any interest, fees or charges. This is then divided 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 nearly any business reason, such as managing cash flows, business improvements, advertising, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Wandi Business Loans
What is the Larger Wandi Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been in operation for at least 3 years and have an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can the funding be used for?
A Larger Business Loan can be used to fund almost all company reason, such as business renovations, to purchase inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. It’s by taking a charge over assets, which could also include the registration of this in the PPSR or making as a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is general in nature rather than defining security over a particular asset. The person who is signing the guarantee is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR allows preference over private property assigned according to the date a security interest has been registered.
A caveat is a legal form of document to provide the legal claim to property.
What is a pre-approval minus Credit Check?
When you’re applying for larger company loans of $250,000 or more, we may offer a preliminary pre-approval to help make the process. We may be able to make this decision without a credit verification and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial well-being checks. It’s in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer that you are offered could be subject to different conditions.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Complete the online form in just a few minutes, and an experienced company credit specialist will call you to guide you.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s License), an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application details including credit consent, 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 bank statement, an IRD statement, last 2 years finalised financial statements, plus interim financials for the current financial year such as age-related payables and aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we can often offer an answer in just one hour – as long as you apply during standard company times and you allow us to utilise the bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statement, we’ll offer the decision within just an business day.
For the Larger Business Loan ($100K to $500K) we may be likely to provide you with pre-approval conditional to your application in around six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain offers have been approved within the space of 24 hours.
The quickest method for you to apply is ensure you apply during standard company hours, and let us use the modern bank verification link to instantly verify your bank account information online. If you decide to upload copies of your bank accounts, it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour – as long as you submit your request during standard business time and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statements, we’ll be able to offer the decision within an business day.
For the Larger Business Loans ($100K and up) we could be able to offer you with pre-approval conditional to your application within six hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Some deals have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours, and allow us to use our advanced bank verification system link to instantly verify your bank account information online. If you opt to send us copies of your bank accounts, it will take a little longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a certain amount we will consider a number of elements for determining what is the well-being of your company and the extent of repayments that your company is able to afford. The total amount of your loan will depend on the particular circumstances for your business.
If you apply for a certain amount, we take into consideration a variety of elements to assess the well-being of your company and the level of repayments your business can afford. The total amount of your loan will depend on the specifics for your company.
Fees & repayments
What is the cost for a company loan?
When you make an application for the business loans, we’ll assess the risk assessment for your business and provide you with a customised offer including the amount of loan, the term and the interest rates. It is a company loan is a loan that is priced upfront which means you be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Interest rates for company loans rates vary due to factors such as the amount that is borrowed, the business assets the funds will be used for as well as the field the company operates in, the long the business has been in operation and what percentage of the company has sufficient cash flow to cover the loan, as well as the overall health or financial standing of the company.
What are the fees?
There are no hidden costs for our business loans, and you’ll know precisely what you’ll be required to pay, and when, starting from day one. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay off the loan early?
You can repay all of your advance loan at any time.
If you decide to do this please call our helpful business loans experts. The professionals will offer you with the details of your repayment and an early payment figure. This will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of the early payout plus 1.5% of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line with your cash flow general, we offer repayments that are either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear how we collect data, process, exchange and safeguard your data, is of huge importance and is an essential 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 protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We use an advanced bank verification system link to instantly verify your bank account details online to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner utilises assets they own to get a loan. The asset can be either an asset belonging to the personal, like the family home or it could be a company property like a truck or piece of equipment.
The vast majority of banks, even the big banks, tend to make loans secured by an asset. If you are having difficulty paying back the loan, then your asset may be sold by the lender. In essence it is means of securing new funding making use of the value of what you already have.
Do I require security for a business loan?
For loans that exceed $150,000, there is no requirement for asset security before you can access the money However, we do need the personal guarantee. So long as you comply with your loan obligations (as stated in your loan contract document) Asset security is not required. For loans over $150K generally there is a personal ensure and security is provided in the form of an asset charge.