FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Docklands Small Business Loans
Tell me what you think of the Docklands Small Business Loans
Docklands unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
The application to this Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and the funds could be on your account within 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. The business loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company reason, such as control of cash flow business improvements, advertising to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Docklands Business Loans
What is the Larger Docklands Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been 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, 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 used for?
A Business Loan of a larger size is a great option for almost every business purpose including business improvements, purchasing equipment or inventory as well as for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This can be done in the form of a charge over assets, which could also include the registration of this on the PPSR or registering as a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is generally based rather than specifying the security for a particular asset. The person signing the ensure is personally accountable if the company creditor is unable 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 the assets or goods). The PPSR allows preference over private property assigned in accordance with the date on which a registration of a security interest.
The caveat can be described as a formal document filed to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger company loans that is greater than $250,000, we may offer an initial pre-approval to smooth out the process. It is possible to make this decision without a credit check and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial well-being questions. This is not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you may receive may be based on different conditions.
The application process
Can I be eligible for funding?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove 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 - $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a couple minutes, and a dedicated company loan specialist will be in touch to guide you.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Application details including credit consent and 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer in just one hour – as long as you make your application during standard company hours and you allow us to utilise the bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll offer a decision in as little as 1 business day.
For the Larger Business Loan ($100K or more) we might be able to provide the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Certain offers have been approved in less than 24 hours.
The quickest way to apply can be make sure you apply during normal business hours, and let us use the modern bank verification to check your bank’s information online. If you choose to send us duplicates of your banking statement, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we can often offer an answer within one hour if you apply during standard business hours and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements we can provide an answer within an business day.
For the Larger Business Loans ($100K to $500K) we may be likely to offer the conditional pre-approval in about 6 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 circumstances of each application. Certain offers have been approved within the space of 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours and let us use the sophisticated bank verification link to instantly confirm your bank details online. If you choose to send us duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a specific amount we look at a variety of variables for determining how much we can lend you well-being of the business and the level of repayments that your company can support. The total amount of the loan will be determined by the specifics that are unique to your business.
When you make an application for a specific amount we will consider a number of aspects to determine the well-being of the company and the amount of repayments your company can afford. The amount you receive from your loan will depend on the particulars the business.
Fees & repayments
How much should you charge for a company loan?
If you decide to request the business loans, we’ll assess the risk assessment the business and offer you with a tailored offer, including loan amount, term and the interest rates. A business loan is a loan that is priced upfront and you’ll be aware of the total amount due, which includes any costs, fees, or interest rates.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on a variety of factors such as the amount that is borrowed, the business assets the funds are used to purchase in addition to the industry that the company is operating in, how long the company has been running, in the event that the company has enough cash flow to support the loan, as well as the general health or financial standing of the company.
What are the cost?
There are no hidden costs with our company loans. You’ll know precisely how much it is that you be required to pay and at what time, from day one. There’s no compounding interest, and there are no additional charges (as as you make your payments in time).
We do not charge an application fee. You are able to get a cash loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan earlier?
You can choose to repay the total amount of your loan at any point in time.
If you are deciding to pursue this option, please contact our helpful business loan professionals. They’ll provide you with repayment details and an early payout figure. This will be calculated as the sum of the principal balance plus any accrued interest as of the date of early payout, plus 1.5 percent of the principal remaining and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work with your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being transparent about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of huge importance and an integral aspect 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 and financial data and our funders are ISO 27001 certified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system to immediately verify the bank account details online, allowing us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner utilises assets they own to secure the funding. The asset can be an asset belonging to the personal, like the family home or an business asset such as a truck or piece of equipment.
The majority of lending institutions, not just the big banks, tend to secure loans against assets. If you have trouble paying back the loan, then your asset may be transferred to the lender. In essence, it’s an opportunity to secure additional financing taking advantage of the value of what you already own.
Do I need security to secure an business loan?
For loans that exceed $150K, no asset security is required in advance to gain access to the funds However, we require a personal guarantee. need a personal guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract), asset security is not required. If you take out loans in excess of $150,000 generally there is the option of a personal guarantee and security in the form of the charge of assets.