FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Durack Small Business Loans
Let me know more about Durack Small Business Loans
Durack unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
The application for the Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional company loans are based on an annual rate of interest together with additional fees and charges. The business loan is a pre-paid loan and you’ll know in advance the total amount due, which includes the interest, fees and charges. Then, it is broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business use, including control of cash flow business remodeling, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used for personal purposes.
About Larger Durack Business Loans
What is the Larger Durack Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funds be used for?
A Larger Business Loan is a great option for almost every company reason, such as business remodeling, buying inventory or new equipment as well as for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It is usually in the form of a charge over assets and can include registration on the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is generally in nature rather than stating security over an asset. The person signing the guarantee is personally accountable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be granted in accordance with the date on which a security interest that is registered.
Caveats are legal document lodged to provide an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger business loans that is greater than $250K it’s possible to offer an initial pre-approval that will help smooth out the process. It is possible to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering some financial health questions. It is in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could have different terms.
The 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 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (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 application process is fast and simple. Just fill out the online application in few minutes and a dedicated business expert in lending will contact you to guide you.
For a loan of up to $100,000 you’ll require ID details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent twelve months of bank statements, IRD statement Last 2 years’ finalised financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we usually offer an answer within an hour – as long as you make your application at standard company timings and let us utilise 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 offer a decision in just an company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be capable of offer you with a conditional pre-approval in around 6 hours. After you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain agreements have been approved in less than 24 hours.
The quickest method for you to apply is ensure you apply during normal company hours. You can also allow us to use our modern bank verification link to instantly verify your bank account information online. If you choose to send us copies of your bank statement, it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within one hour – provided you submit your request at normal business timings and let us use the bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll offer an answer in just the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we may be able to provide you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some agreements have been approved in the space of 24 hours.
The quickest method can be ensure you apply during standard business hours. You can also allow us to use our advance bank verification link to confirm your bank details online. If you choose to upload duplicates of your banking statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of variables for determining how much we can lend you well-being of the business and the level of repayments that your business will be able to support. The amount you receive from the loan will be determined by the particular circumstances for your company.
When you make an application for a set amount, we consider a variety of elements to assess how much we can lend you such as well-being for your business and the extent of repayments your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances of your business.
Fees & repayments
How much should you charge for a business loan?
When you apply for the business loan, we’ll assess the risk assessment for your company and provide you with a customised offer including the amount of loan, the term and the interest rates. A business loan is an upfront priced loan therefore you will know the exact amount due, which includes any charges or interest.
What is the basis for the rate I will be charged?
Business loan interest rates vary due to variables like the amount to be borrowed, the company assets the money will be used for and the sector the business is in, how long the company has been operating as well as what percentage of the company has sufficient cash flow to fund the loan, as well as the overall health or creditworthiness of the company.
What are the charges?
There are no hidden fees with our company loans. You’ll know precisely how much you need to pay, and when, right from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans with no cost upfront or commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan early?
You may choose to pay back the entire amount of the advance loan at any time.
If you decide to pursue this option, please call our helpful business credit specialists. The specialists will offer you with details on repayment and an early payout figure. It will be calculated using the sum of the remaining principal amount plus any accrued interest as of the time of the early payout plus 1.5% of the remaining principal as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about the ways we gather, use, exchange and ensure the security of your information is of paramount importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We employ an exceptionally sophisticated bank verification system that allows you to immediately verify your bank account information online, allowing us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner borrows from an asset they own to make the funds for a loan. The asset can be either an individual asset, such as the family home, or an business asset like a truck as well as a piece of machine.
The majority of lending institutions, including the banks with the biggest size, prefer to secure loans against assets. If you are having difficulty paying back the loan, the asset could be transferred to the lender. In essence, it’s an opportunity to secure new funding taking advantage of the value of what you already have.
Are I need security to secure a business loan?
For loans up to $150,000 the requirement for asset security is not required upfront to access the money but we do need a personal guarantee. If you adhere to the terms of your loan (as stated in your loan contract), asset security will never be required. If you take out loans in excess of $150K typically, you will need personal ensure and security in the form charges on assets.