FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Deception Bay Small Business Loans
Tell me about the Deception Bay Small Business Loans
Deception Bay unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an ordinary business loan?
You can apply to get your Small Business Loan in under 10 minutes over the phone, receive an instant response and the money could be in your account in 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. Our business loan is a pre-paid loan which means you be aware in advance of the total amount payable including any fees, charges or charges. Then, it is broken down into weekly or daily payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company need, such as control of cash flow company remodels and marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
About Larger Deception Bay Business Loans
What is the Larger Deception Bay Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan that is this large, your company needs to have been in operation for at least 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Larger Business Loan is a great option for almost every business need, including business improvements, purchasing new equipment or inventory or as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It is usually as a result of an charge over assets and can be registered with the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally in nature rather than stating the security for a particular asset. The person who signs the ensure is personally liable in the event that the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be granted in accordance with the date on which a registration of a security interest.
Caveats are legal document lodged to provide notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan of more than $250,000 we can offer an initial pre-approval that will help make the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes you answering some financial health checks. This is neither an offer nor a guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer that you may receive may have different terms.
Application process
Do I qualify for funds?
You can apply for an business 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 prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and a dedicated business loan specialist will contact you to help you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we typically offer an answer within one hour, provided you make your application in standard company times and allow us to utilise the bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements , we are able to provide an answer within the span of one business day.
For the Larger Business Loan ($100K to $500K) we may be in a position to provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some agreements have been approved within less than 24 hours.
The most effective method can be make sure you apply during standard company hours, and permit us to use the advanced bank verification system to instantly verify your bank information online. If you opt to send us documents from your account statements , it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we typically provide a response in one hour – provided you apply during standard business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements, we will be able to provide a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K and up) we could be able to provide you with conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based upon the circumstances for each application. Some agreements have been approved within 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours. Also, let us use the modern bank verification to verify your bank information online. If you choose to upload duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of variables for determining the well-being for your company as well as the amount of repayments that your business can support. The total amount of the loan will be determined by the specifics that are unique to your company.
When you make an application for a particular amount, we will consider a number of factors to determine how much we can lend you such as health of your company and the level of payments your company is able to afford. The total amount of your loan will be determined by the specific circumstances the company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you make an application for business loans with us company financing, we’ll assess the risk profile of your company and provide you with a customised offer, including the amount of the loan, the duration and interest rates. A company loan is an upfront cost loan therefore you will know in advance the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates depend on a variety of variables like the amount to be of money borrowed, the company assets the money are used to purchase as well as the field the business operates in, the long the company is in operation and whether the business has sufficient cash flow to cover the loan, and also the general well-being and creditworthiness of the company.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll know exactly how much you be required to pay, and when, right from the day you sign up. There’s no compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I repay the loan early?
You can decide to repay the entire amount of your loan at any point in time.
If you are deciding to do this please talk to one of our helpful company loan specialists. The experts will offer you with details on repayment and an early payment figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of early payout in addition to 1.5% of the principal amount remaining plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align with your cash flow routine, we provide payments that are either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear how we collect information, use it, and exchange it, as well as safeguard your data, is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We employ an exceptionally sophisticated bank verification system to instantly confirm your bank account information online, allowing us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner uses an asset they own to make the funds for a loan. The asset may be an asset belonging to the personal, like the family home or it could be a company asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, including the big banks, tend to guarantee loans against assets. If you have trouble paying back the loan, then your assets could be sold by the lender. In essence it is the process of securing new funding taking advantage of the value of what you already have.
What do I require security for an business loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money, however we require a personal guarantee. require a personal guarantee. If you adhere to the loan terms (as detailed in your loan contract document), asset security will never be needed. If you take out loans in excess of $150K typically, you will need a personal ensure and security is provided in the form of charges on assets.