FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Dinmore Small Business Loans
Tell me more about Dinmore Small Business Loans
Dinmore unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from the traditional business loan?
Apply to the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and the funds could be available in just 24 hours. Traditional company loans refer to an annual interest rate plus other fees and charges. We offer a business loan is a loan that is priced upfront and you’ll know in advance the amount you will have to pay, including any fees, interest or charges. This is then divided into weekly or daily installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company purpose including control of cash flow business renovations, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal use.
About the Larger Dinmore Business Loans
What is the Larger Dinmore Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to be 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) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funds for?
A Larger Business Loan can be used for nearly any business use, including company improvements, purchasing 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 required to obtain funding above $150,000. It’s in the form of a charge on assets, and may include registration through the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to repay a loan which is generally in nature rather than defining the security for a particular asset. The person signing the ensure is personally responsible if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests that are registered for 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.
A caveat is a legal document lodged to provide notice of a legal claim to property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250K we can offer a preliminary pre-approval to help smooth out the process. It is possible to get this done without credit checks and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial well-being questions. This is neither an offer nor a guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer that you may receive may be on different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the 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. Just fill out the online application in just a few minutes, and a dedicated business lending specialist will call you to help you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Information on the application including credit consent twelve month bank accounts, the IRD statements Last 2 years’ finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we typically offer an answer within an hour – as long as you apply within standard business hours and let us utilise the advanced bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements , we are able to provide an answer in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we could be likely to provide you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The fastest way can be ensure you apply during standard company hours and allow us to use the advanced bank verification system link to instantly verify your bank account information online. If you opt to send us documents from your account 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 an answer within an hour if you submit your request in normal business time and permit us to use the bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statements we can provide an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K and up) we might be able to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be faster depending upon the circumstances for each application. Certain offers have been approved within just 24 hours.
The fastest method is to ensure you apply during standard business hours. Also, let us use the advanced bank verification system to instantly confirm your bank details online. If you decide to upload the copies of bank statements, it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of variables to determine what is the health of your business as well as the amount of the repayments your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances the business.
When you make an application for a set amount, we look at a range of factors to determine how much we can lend you such as well-being that is your business as well as the amount of the repayments your business is able to afford. The total amount of your loan will depend on the particulars for your business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to apply for business loans with us company credit, we’ll assess the risk profile for your business and offer an individualised offer, including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront-priced loan which means you be aware in advance of the total amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I pay?
The interest rates on company loans rates depend on several factors such as the amount that is borrowed, what business assets the funds are used to purchase as well as the field the company is operating in, how long the company is in operation for, in the event that the company has sufficient cash flow to pay for the loan, and the general well-being or financial standing of the company.
What are the costs?
There are no hidden costs for our company loans, and you’ll know exactly how much it is that you be required to pay and when, right from the day you sign up. There’s no compounding interest, and no additional fees (as as you make your payments in time).
We do not charge an Application Fee. You are able to get a cash loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan earlier?
You can decide to repay the entire amount of your loan in full at any time.
If you do decide to take this route, please speak to our friendly business loans professionals. The experts will provide you with details on repayment as well as an early payout amount. This is calculated as the sum of the principal remaining and accrued interest to the time of the early payout and 1.5% of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To make sure you do not miss payments and to work with your cash flow general, we offer repayments that are either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear the ways we gather the information we collect, use, share and safeguard your data, is crucial and is an essential 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 and financial data and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We use an advanced banking verification system to immediately verify your bank account information online to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner utilises an asset that they own to make the loan. The asset may be an individual property, such as the family home, or a business asset such as a vehicle or other piece of machinery.
The majority of the lenders including the big banks, tend to make loans secured by assets. If you’re struggling to pay back the loan, your asset may be sold by the lender. In essence, it is a way of securing new financing by using the worth of the asset you already own.
Do I need security to secure an business loan?
For loans of up to $150,000, no asset security is required prior to the loan’s access however, we do need the personal guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be required. For loans of over $150,000 typically, you will need the option of a personal ensure and security in the form of the charge of assets.