FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Doolandella Small Business Loans
Tell me what you think of the Doolandella Small Business Loans
Doolandella unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from the traditional business loan?
You can apply for the Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans are based on an annual rate of interest along with other charges and fees. Our company loan is a cash-based loan so you will know ahead of time the total amount due, which includes any interest, fees or charges. Then, it is divided into a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business reason, such as the management of cash flow, business improvements, advertising to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
About Larger Doolandella Business Loans
What is the Larger Doolandella Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated 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 be trading for at least 3 years, and have an annual income of at least $700K. Your company must belong to 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.
What can I use the funding for?
A larger business loan is a great option for almost all business need, including company renovations, purchase of inventory or new equipment 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 required to access funding over $150,000. This can be done by taking a charge against assets, and could include the registration of this in the PPSR or filing as a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is general in nature, rather than stating the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR permits the priority of personal property assigned in accordance with the date on which a registration of a security interest.
The caveat can be described as a formal document lodged to offer the public notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans of more than $250K it is possible to offer an initial pre-approval in order to smooth out the process. We could be able to get this done without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health checks. It’s neither an offer nor a guarantee of finance. A conditional approval is subject an assessment of your creditworthiness and any offer you are offered could be based on different terms.
Application process
Do I have the right to receive funds?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a few minutes and an experienced company loan specialist will contact you to guide you.
To apply for up to $100,000 you’ll need proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour, provided you make your application in standard company times and permit us to use the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements we can provide the decision in just the span of one company day.
For the Larger Business Loan ($100K or more) we might be likely to provide you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some agreements have been approved within 24 hours.
The fastest way would be to ensure you apply during standard company hours, and let us use the advance bank verification link to instantly verify your bank information online. If you decide to send us copies of your bank statement, it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within an hour – as long as you make your application in standard business time and you allow us to use the bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements, we are able to offer a decision in as little as an business day.
For Larger Business Loans ($100K up to $500,000) we may be able to offer you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Some transactions have received approval within just 24 hours.
The quickest method can be ensure you apply during normal business hours and allow us to use our sophisticated bank verification link to instantly verify your bank account information online. If you decide to send us documents from your account statement, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of factors that determine what is the well-being for your company as well as the amount of repayments your business can afford. The total amount of your loan will depend on the specifics of your company.
When you apply for a certain amount, we will consider a number of elements to assess the well-being of your business and the extent of repayments your business is able to afford. The amount you receive from the loan will be determined by the specifics the company.
Fees & repayments
How do you charge for an business loan?
When you make an application for our business loan, we will assess the risk profile the company and provide you with a customised proposal that includes the loan amount, the terms and interest rates. The business loan is an upfront cost loan which means you be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I pay?
The interest rates on business loans rates depend on several variables like the amount to be borrowed, what business assets the funds will be used for and the sector the business is operating in, how long the business has been in operation as well as what percentage of the business has enough cash flow to fund the loan, as well as the overall health and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our company loans. You’ll know exactly how much it is that you be required to pay and when, right from the very first day. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to request a credit loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can decide to repay all of your loan in full at any time.
If you do decide to pursue this option, please talk to one of our helpful business loan professionals. They will provide you with repayment details and an early payout figure. This will be calculated as the total of the principal balance and the accrued interest up to the date of early payout, plus 1.5 percent of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear the ways we gather the information we collect, use, share and ensure the security of your information is of paramount importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated bank verification system to immediately confirm your bank account information online, allowing us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from the assets they have to secure the loan. The asset could be a personal asset like the family home, or a company property like a truck or piece or equipment.
The majority of lenders, including the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan then your asset may be offered for sale by the lender. In essence, it is an opportunity to secure new financing using the worth of the asset you already own.
Are I require security for a business loan?
Up to $150K in loans there is no requirement for asset security before you are able to access the money However, we do require an individual guarantee. In the event that you fulfill the terms of your loan (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not required. For loans over $150K generally there is an individual guarantee and security in the form of an asset charge.