FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Deagon Small Business Loans
Let me know more about Deagon Small Business Loans
Deagon unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
Apply for the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and the funds could be available in just 24 hours. Traditional company loans refer to an annual interest rate as well as other fees and charges. This company loan is a loan that is priced upfront which means you know ahead of time the total amount payable including the interest, fees and charges. This is then broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business reason, such as cash flow management, business remodeling, marketing to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal reasons.
About the Larger Deagon Business Loans
What is the Larger Deagon Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size the company needs to be operating for a minimum of 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be used for?
A Business Loan of a larger size is a great option for almost any business need, including business renovations, purchase of inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It’s in the form of a charge against assets, and may include registration with the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature rather than stating the security for a particular asset. The person who is signing the guarantee is personally liable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR gives the priority of personal property assigned depending on the date that a security interest has been registered.
Caveats are legal document that is filed to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan that is greater than $250K we may be able to provide a preliminary pre-approval to help simplify the process. It is possible to make this decision without credit checks and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial well-being questions. It is neither an offer nor a guarantee of funds. A conditional approval is subject a full credit assessment and any offer that you may receive may have different terms.
Application process
Can I be eligible for funding?
You may apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three 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 company credit specialist will contact you to help you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we typically offer a response in one hour – as long as you submit your request within quality company time and let us utilise the bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements , we will be able to provide a decision in just an business day.
For the Larger Business Loan ($100K or more) we may be able to provide you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Certain offers have been approved in less than 24 hours.
The quickest method is to ensure you apply during standard company hours, and let us use the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we can often offer an answer within one hour – as long as you submit your request in standard business times and you allow us to use the bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements we can offer a decision within an business day.
For the Larger Business Loans ($100K up to $500,000) we may be capable of offer you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some offers have been approved in less than 24 hours.
The most efficient method is to ensure you apply during standard business hours and allow us to use our sophisticated bank verification link to instantly confirm your bank details online. If you opt to send us documents from your account statement, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount we look at a variety of elements that determine the well-being of the business as well as the amount of repayments that your company can afford. The amount you receive from the loan will be determined by the specific circumstances of your business.
When you apply for a certain amount, we look at a range of elements to determine the well-being of the company and the extent of repayments that your business will be able to support. The total amount of your loan will be determined by the specifics the business.
Fees & repayments
What is the cost for a business loan?
If you decide to request one of our business financing, we’ll assess the risk assessment that you have for your company and provide you with a customised offer, including loan amount, term and the interest rates. It is a business loan is an upfront-priced loan therefore you will be aware of the total amount due, which includes any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
Business loan interest rates differ based on various variables like the amount to be that is borrowed, what company assets the money will be used for and the sector the company is operating in, how long the business has been operating, what percentage of the business has sufficient cash flow to pay for the loan, and overall well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount it is that you be required to pay and when, starting from the day you sign up. There’s no compounding interest, and no extra fees (as long as you make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan with without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay out the loan early?
You can repay the entire amount of your loan early at any time.
If you do decide to pursue this option, please talk to one of our helpful business loans experts. They’ll offer you with details for repayment along with an early payout estimate. The figure will be calculated as the total of the principal amount remaining and accrued interest to the date of early payout plus 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss payment dates and to align your cash flow schedule, we provide payments that are either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange 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 make use of industry-standard encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We make use of an advanced banking verification system to instantly verify your bank account information online so we can offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a company owner borrows from an asset that they own to secure the funds for a loan. The asset can be either an individual property, such as the family home, or an business asset such as a vehicle or other piece of machinery.
The vast majority of banks, not just the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan, then the asset could be taken over by the lender. In essence it is the process of securing new financing taking advantage of the value of what you already own.
Do I need security for an company loan?
Up to $150,000 in loans the requirement for asset security is not required prior to the loan’s access but we require a personal guarantee. need a personal guarantee. In the event that you fulfill the terms of your loan (as detailed in the loan contract) Asset security will never be needed. For loans of over $150K generally, there is a personal guarantee and security in the form a charge over assets.