FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Deagon Small Business Loans
Tell me how you can avail the Deagon Small Business Loans
Deagon unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
You can apply for your Small Business Loan in under 10 minutes online or over the phone, receive an instant response and the funds could be available in just 24 hours. Traditional business loans reference an annual interest rate as well as other fees and charges. Our company loan is a loan that is priced upfront so you will know in advance the total amount due, which includes any fees, interest or charges. Then, it is broken down into either weekly or daily installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business reason, such as cash flow management, business remodeling, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan is not available for personal use.
About larger Deagon Business Loans
What is the Larger Deagon Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to have been in operation for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly all business purpose including company renovations, purchase of equipment or inventory or as 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 needed for funding of more than $150,000. This can be done in the form of a charge over assets and can include registering this with the PPSR or making a caveat.
A personal or director’s ensure is a commitment to repay a loan which is generally based rather than defining security over an asset. The person signing the guarantee is personally accountable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be granted according to the date the security interest that is registered.
The caveat can be described as a formal document that is filed to offer the public notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan of more than $250K we can offer an initial pre-approval that will help simplify the process. It is possible to get this done without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health checks. This is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be based on different terms.
Application process
Do I have the right to receive funds?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Just complete the online application within a couple minutes, and a dedicated company credit specialist will be in touch to assist you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we can often offer an answer within an hour if you submit your request at standard business timings and you allow us to utilise the bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements , we will be able to offer an answer within just 1 company day.
For the Larger Business Loan ($100K to $500K) we may be in a position to provide the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved within just 24 hours.
The most effective method for you to apply is ensure you apply during normal business hours. You can also let us use the advanced bank verification system link to instantly verify your bank account information online. If you decide to send us duplicates of your banking accounts, it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour – provided you apply during standard business hours and let us make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements we can provide a decision in just the span of one business day.
For the Larger Business Loans ($100K and up) we may be likely to provide you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain transactions have received approval within 24 hours.
The fastest method is to make sure you apply during normal business hours and allow us to use our advance bank verification to verify your bank account information online. If you upload copies of your bank accounts, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a specific amount we consider a variety of elements to determine the well-being for your company and the extent of repayments that your company can support. The amount you receive from your loan will depend on the specifics the business.
When you make an application for a particular amount, we consider a variety of variables to determine the health of your business as well as the amount of repayments your company is able to afford. The total amount of your loan will depend on the particulars that are unique to your company.
Fees & repayments
What is the cost for an business loan?
If you decide to request the business financing, we’ll assess the risk profile of your company and provide you with a tailored proposal that includes the amount of the loan, the duration and the interest rates. It is a business loan is an upfront cost loan and you’ll know the exact amount payable including any charges, interest rates or fees.
What is the factor that determines the price I will be charged?
Interest rates for company loans rates vary due to factors such as the amount that is that is borrowed, what company assets the funds are used to purchase in addition to the industry that the company operates in, the long the business has been in operation, whether the company has sufficient cash flow to fund the loan, and overall well-being or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you’ll need to pay, and when, from the day you sign up. There’s not any compounding interest and no additional fees (as as you make your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing 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 loan.
Can I pay out the loan earlier?
You can decide to repay the entire amount of the loan early at any time.
If you do decide to do this please contact our helpful company credit experts. We will offer you with the details of your repayment as well as an early payout amount. The figure will be calculated as the total of the remaining principal amount and accrued interest to the time of early payout in addition to 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss payments and to work your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about how we collect information, use it, and exchange it, as well as safeguard your data, is of paramount importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account details online. This allows us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where the company owner borrows from the assets they have to obtain the loan. The asset may be an individual property, such as the family home, or a business property like a truck or piece of equipment.
The vast majority of lenders, not just the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan then your asset may be sold by the lender. In essence it is an opportunity to secure new financing using the worth of the asset you already own.
Should I require security to secure a business loan?
For loans that exceed $150K, it is not necessary to secure assets upfront to access the money However, we require a personal guarantee. need a personal guarantee. As long as you follow the terms of your loan (as specified in the loan contract) Asset security will never be needed. For loans that exceed $150K, generally there is personal guarantee and security is provided in the form of a charge over assets.