FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Drewvale Small Business Loans
Tell me more about Drewvale Small Business Loans
Drewvale unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an ordinary business loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and the funds could be in your account in 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. The business loan is an upfront priced loan which means you be aware in advance of the total amount payable including the interest, fees and charges. Then, it is divided into a daily or weekly payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company need, such as managing cash flows, company improvements, advertising for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
About larger Drewvale Business Loans
What is the Larger Drewvale Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the business needs to be in operation for at least 3 years and generate an annual revenue of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funds for?
A large company loan can be used for almost any company reason, such as business remodeling, buying equipment or inventory as well as for 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 required to access funding over $150,000. This can be done in the form of a charge over assets, and could include registering this on the PPSR or registering as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature, rather than stipulating the security of a specific asset. The person signing the ensure is personally responsible if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including goods or assets). The PPSR allows priority over personal property to be granted depending on the date that a security interest was registered.
The caveat can be described as a formal document filed to offer notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250K we can offer a preliminary pre-approval to help ease the process. We may be able to do this without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial well-being questions. It is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may be subject to different conditions.
The application process
Are I eligible for funding?
You may apply for an 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)
- you must prove at least 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. Simply complete the online form within a few minutes and a dedicated business expert in lending will be in touch to assist you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also 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, 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we can often provide an answer within an hour – as long as you make your application in quality business timings and allow us to use the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statements we can provide a decision within the span of one business day.
For the Larger Business Loan ($100K or more) we might be able to offer the conditional pre-approval in about 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some offers have been approved within less than 24 hours.
The quickest way to apply is to ensure you apply during standard company hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statement, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we can often offer a response in one hour, provided you make your application during normal business time and let us use the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements, we will be able to provide a decision within an business day.
For the Larger Business Loans ($100K to $500K) We may be likely to provide you with conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved in just 24 hours.
The most effective method is to make sure you apply during standard business hours. You can also allow us to use our modern bank verification link to check your bank’s information online. If you choose to upload the copies of bank statements it can take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we take into consideration a range of variables to determine the health of the company as well as the amount of the repayments your business will be able to support. The total amount of your loan will depend on the particular circumstances that are unique to your business.
When you make an application for a set amount, we take into consideration a variety of aspects to assess how much we can lend you such as well-being of your company and the amount of repayments your business can support. The total amount of the loan will be determined by the specifics that are unique to your company.
Fees & repayments
How do you charge for an company loan?
When you make an application for our company credit, we’ll assess the risk profile for your company and offer you with a tailored offer including the loan amount, the terms and interest rates. A company loan is an upfront-priced loan which means you know in advance the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I will be charged?
The interest rates on company loans rates differ based on various factors like the amount of money of money borrowed, the company assets the money will be used for in addition to the industry that the company operates in, how long the company is in operation for, how long the company has sufficient cash flow to pay for the loan, as well as the general health as well as creditworthiness business.
What are the costs?
There are no hidden fees with our company loans. You’ll be aware of the amount you need to pay and when, from the first day. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You can apply for a loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this 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 early?
You can choose to repay all of your advance loan at any time.
If you decide to pursue this option, please call our helpful company credit professionals. The experts will provide you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the remaining principal amount and any accrued interest at the time of the early payout and 1.5 percent of the principal remaining and any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about how we collect the information we collect, use, share and protect your information, is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We employ an exceptionally sophisticated bank verification system that allows you to immediately verify the bank account details online. This allows us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses the assets they have to make a loan. The asset could be an individual asset, such as the family home or it could be a business asset like a truck or other piece of machinery.
The majority of lending institutions, not just the big banks, tend to secure loans against assets. If you have trouble paying back the loan, then the asset could be transferred to the lender. In essence it is the process of securing new funding using the worth of the asset you already have.
What do I require security to secure an business loan?
For loans of up to $150K, no asset security is required upfront to access the money but we require a personal guarantee. need the personal guarantee. So long as you comply with the loan terms (as stated in the loan contract), asset security is not required. For loans over $150K generally, you can get a personal ensure and security in the form of charges on assets.