FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Dutton Park Small Business Loans
Tell me more about Dutton Park Small Business Loans
Dutton Park unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
You can apply for this Small Business Loan in under 10 minutes via the internet or over the phone, receive an instant response and the money could be in your account within 24 hours. Traditional business loans refer to an annual interest rate plus other fees and charges. Our company loan is a cash-based loan and you’ll be aware of the amount you will have to pay, including any fees, interest or charges. This is then divided into a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business reason, such as managing cash flows, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal purposes.
Concerning Larger Dutton Park Business Loans
What is the Larger Dutton Park Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated 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) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funds be utilised?
A large company loan can be used for almost every company use, including company renovations, purchase of equipment or inventory, as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It is usually as a result of an charge over assets, and may include the registration of this on the PPSR or registering a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally in nature rather than stating the security of a specific asset. The person signing the ensure is personally responsible if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR permits the priority of personal property assigned in accordance with the date on which a security interest was registered.
The caveat can be described as a formal form of document to offer the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250K we may be able to provide a preliminary pre-approval to help simplify the process. It is possible to do this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering some financial health checks. It’s not an offer of credit or guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you receive could be on different terms.
Application process
Do I qualify for funds?
You can apply for an company 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)
- can demonstrate at least 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just complete the online application in just 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 require proof of identity (valid Driver’s Licence), a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour, provided you apply in standard business times and allow us to use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statement, we’ll offer the decision within one company day.
For the Larger Business Loan ($100K and up) we could be likely to provide you with pre-approval conditional to your application within about 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Some offers have been approved in the space of 24 hours.
The quickest method is to ensure you apply during normal business hours. Also, let us use the modern bank verification to instantly confirm your bank details online. If you choose to send us copies of your bank statements it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour if you make your application during standard business times and let us use the bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statement, we’ll offer an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be faster depending on the circumstances of each application. Some offers have been approved in just 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours and allow us to use the sophisticated bank verification link to instantly verify your bank information online. If you upload copies of your bank accounts, it can 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 consider a variety of variables that determine how much we can lend you well-being of your company and the amount of repayments that your business will be able to support. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
When you apply for a set amount, we look at a range of elements to assess your well-being of your company as well as the amount of payments your company can afford. The total amount of the loan will be determined by the particulars for your business.
Fees & repayments
How much should you charge for an company loan?
If you decide to request the business financing, we’ll assess the risk profile for your business and provide you with a customised offer, including the loan amount, the terms and the interest rates. This business loan is an upfront cost loan which means you know in advance the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I pay?
Business loan interest rates differ based on various variables like the amount to be borrowed, what company assets the funds are used to purchase in addition to the industry that the company operates in, how long the company has been running for, how long the company has enough cash flow to support the loan, and also the overall health as well as creditworthiness company.
What are the fees?
There aren’t any hidden costs with our company loans, and you’ll be aware of the amount it is that you be required to pay and when, right from the very first day. There’s not any compounding interest and no additional fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You can request a credit loan with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with 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 loan.
Can I pay out the loan early?
You may choose to pay back the total amount of your advance loan at any time.
If you do decide to take this route, please contact our helpful company credit specialists. They’ll offer you with details for repayment along with an early payout estimate. This is calculated as the total of the principal balance and any accrued interest at the time of early payout and 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payment dates and to align with your cash flow general, we offer repayments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We employ a highly sophisticated bank verification system to immediately verify your bank account information online so we can provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner makes use of assets they own to get the funding. The asset may be a personal asset like the family home or an company property like a truck as well as a piece of machine.
The majority of lending institutions, even the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan then the asset could be transferred to the lender. In essence, it is the process of securing additional financing making use of the value of what you already have.
Are I need security to get a business loan?
Up to $150K in loans no asset security is required prior to the loan’s access However, we require a personal guarantee. require an individual guarantee. In the event that you fulfill the loan terms (as stated in the loan contract), asset security is not needed. If you take out loans in excess of $150K generally, you are able to get the option of a personal guarantee and security is provided in the form of an asset charge.