FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Daisy Hill Small Business Loans
Tell me how you can avail the Daisy Hill Small Business Loans
Daisy Hill unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
The application to this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and have the funds in your account in 24 hours. Traditional business loans reference an interest rate per annum as well as other fees and charges. We offer a business loan is an upfront priced loan and you’ll be aware in advance of the amount you will have to pay, including the interest, fees and charges. Then, it is divided into weekly or daily installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business purpose including cash flow management, business improvements, advertising for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available for personal use.
Concerning Larger Daisy Hill Business Loans
What is the Larger Daisy Hill Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to have been operating for a minimum of 3 years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own 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 Business Loan can be used to fund almost every company use, including business remodeling, buying inventory or new equipment or as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It is usually in the form of a charge over assets, which could also include registration with the PPSR or filing as a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is generally in nature rather than stipulating security over an asset. The person who is signing the ensure is personally accountable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR permits priority over personal property to be granted according to the date the security interest that is registered.
Caveats are legal document that is filed to offer an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan of more than $250K we can offer an initial pre-approval in order to make the process. We could be able to make this decision without credit checks and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering some financial health checks. It is not an offer or guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you are offered could be based on different conditions.
Application process
Do I qualify for funds?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in just a few minutes, and a dedicated company lending specialist will contact you to guide you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s License) and a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent, 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we usually provide an answer within an hour if you make your application at quality business times and you allow us to utilise the bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements , we will be able to offer the decision in as little as an company day.
For Larger Business Loans ($100K and up) we might be able to provide you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The fastest way would be to make sure you apply during normal business hours. Also, allow us to use our modern bank verification link to confirm your bank details online. If you choose to upload documents from your account statements , it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer in just one hour, provided you submit your request at standard business time and permit us to use the bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements, we’ll be able to provide a decision within one business day.
For the Larger Business Loans ($100K to $500K) we might be able to provide you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Some transactions have received approval within 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours. Also, let us use the modern bank verification link to instantly verify your bank information online. If you opt to send us copies of your bank accounts, it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount, we look at a variety of factors for determining the well-being of the business and the extent of repayments your business can afford. The total amount of the loan will be determined by the specifics for your business.
If you apply for a certain amount, we consider a variety of aspects to determine how much we can lend you such as health of your business as well as the amount of the repayments your business is able to afford. The total amount of the loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much do you charge for the cost of a business loan?
When you request business loans with us business credit, we’ll assess the risk profile the business and provide you with a customised proposal that includes loan amount, term and the interest rates. A company loan is an upfront cost loan and you’ll be aware in advance of the total amount to be paid, including any charges or interest.
What determines the amount I’m charged?
The interest rates on business loans rates depend on a variety of factors like the amount of money borrowed, the company assets the money are used to purchase and the sector the company operates in, how long the business has been operating and in the event that the company has sufficient cash flow to support the loan, and the general well-being or financial standing of the business.
What are the cost?
There aren’t any hidden charges for our business loans, and you’ll know exactly how much you be required to pay, and when, starting from day one. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You can request a credit loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay out the loan earlier?
You can repay the total amount of your loan early at any time.
If you choose to pursue this option, please speak to our friendly business loan experts. They will offer you with details for repayment and an early payment figure. The figure will be calculated as the total of the remaining principal amount and accrued interest to the time of the early payout, plus 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing how we collect data, process, exchange and ensure the security of your information is crucial 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 protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We employ an exceptionally sophisticated banking verification system to immediately verify your bank account details online to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner uses an asset they own to obtain the loan. The asset can be either an asset belonging to the personal, like the family home, or a business asset like a truck or piece of equipment.
The majority of lenders, even the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan, then your assets could be offered for sale by the lender. In essence, it is an opportunity to secure new financing by using the value of what you already have.
Are I need security to secure a business loan?
For loans up to $150,000 the requirement for asset security is not required before you can access the money, however we do require an individual guarantee. So long as you comply with the terms of your loan (as specified in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally there is personal guarantee and security in the form of an asset charge.