FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Dandenong Small Business Loans
Let me know about the Dandenong Small Business Loans
Dandenong unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes online or over the phone, receive a same day response and the funds could be on your account within 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. The company loan is a loan that is priced upfront which means you be aware in advance of the total amount to be paid, including any interest, fees or charges. This is then broken down 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 nearly every business need, such as managing cash flows, company renovations, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Dandenong Business Loans
What is the Larger Dandenong Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been trading for at least 3 years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A larger company loan can be used to fund almost every company reason, such as company improvements, purchasing new equipment or inventory, as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. It’s by taking a charge over assets, and may include registering this with the PPSR or registering as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally liable in the event that the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR gives priority over personal property to be granted according to the date a security interest was registered.
An affidavit is an official document that is filed to provide notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger business loans that exceeds $250,000 it’s possible to offer a preliminary pre-approval to help ease the process. We might be able to make this decision without a credit check and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial well-being questions. It’s not an offer or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you receive could be on different terms.
The application process
Are I eligible for funding?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a few minutes and an experienced company lending specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Information on the application including credit consent twelve months of bank records, IRD statements and the last two years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we typically offer an answer in just one hour, provided you make your application in standard company timings and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we will be able to offer the decision in just 1 business day.
For the Larger Business Loan ($100K to $500K) we could be capable of provide you with conditional pre-approval in around six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved in the space of 24 hours.
The most effective method is to make sure you apply during normal business hours. You can also let us use the advanced bank verification system to confirm your bank details online. If you upload copies of your bank accounts, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we typically provide a response in one hour – as long as you apply in standard business time and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements we can provide a decision within 1 business day.
For the Larger Business Loans ($100K or more) We may be in a position to offer you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Some transactions have received approval within 24 hours.
The fastest way would be to ensure you apply during standard business hours and let us use the advance bank verification to instantly verify your bank account information online. If you opt to upload documents from your account statements it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of aspects in order to assess the well-being that is your company and the level of the repayments your business will be able to support. The total amount of the loan will be determined by the specifics for your business.
If you apply for a set amount, we consider a variety of aspects to assess the well-being that is your company and the extent of the repayments your business will be able to support. The total amount of your loan will depend on the specifics that are unique to your business.
Fees & repayments
How do you charge for a business loan?
When you make an application for our business loans, we’ll assess the risk profile of your company and offer an individualised offer including the amount of the loan, the duration and interest rates. It is a business loan is an upfront-priced loan and you’ll know in advance the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I am charged?
The interest rates on company loans rates depend on several factors such as the amount that is that is borrowed, what business assets the funds are used to purchase in addition to the industry that the business operates in, how long the business is in operation, whether the company has sufficient cash flow to cover the loan, and general health or creditworthiness of the company.
What are the charges?
There aren’t any hidden costs for our business loans. You’ll know precisely what it is that you need to pay and when, right from the day you sign up. There’s no compounding interest, and no extra fees (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to get a cash loan with with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan earlier?
You can repay the entire amount of your loan early at any time.
If you are deciding to pursue this option, please contact our helpful business loan specialists. They’ll provide you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the principal remaining and accrued interest to the date of early payout and 1.5 percent of the principal remaining plus any outstanding fees.
What is the process for repayments?
To ensure you do not miss due dates and also to be in line your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing the ways we gather the information we collect, use, share and ensure the security of your information is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to customer security and privacy. We make use of an advanced bank verification system that allows you to instantly verify your bank account information online so we can offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of the assets they have to get the loan. The asset can be either a personal asset like the family home, or an company property like a truck or piece of equipment.
The majority of lenders, not just the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan, the asset might be offered for sale by the lender. In essence it’s an opportunity to secure new financing by using the value of what you already have.
Do I require security to secure an company loan?
Up to $150,000 in loans no asset security is required upfront to access the money, however we require a personal guarantee. need a personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract), asset security will never be needed. For loans of over $150,000 generally, you are able to get personal guarantee and security in the form a charge over assets.