FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Dutton Park Small Business Loans
Tell me about the Dutton Park Small Business Loans
Dutton Park unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an traditional business loan?
The application to the Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and the money could be in your account in 24 hours. Traditional business loans have an annual rate of interest plus other fees and charges. The business loan is a pre-paid loan so you will know in advance the total amount payable including the interest, fees and charges. This is then divided into weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business need, such as cash flow management, business remodeling, marketing to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Dutton Park Business Loans
What is the Larger Dutton Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business 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 weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan of this size the business needs to be trading for at least 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can the funds be used for?
A Business Loan of a larger size can be used for almost all business purpose including business improvements, purchasing equipment or inventory or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It’s as a result of an charge over assets and can include the registration of this on the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature rather than stating security over an asset. The person who signs the guarantee 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 registry run by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR gives preference over private property assigned in accordance with the date on which a security interest has been registered.
An affidavit is an official document filed to offer an official notice of a claim to property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans of $250K or more, we may offer an initial pre-approval to smooth out the process. We could be able to do this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial well-being questions. It is not an offer or guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer that you receive could be subject to different terms.
The application process
Can I be eligible for funding?
You can apply for a 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 demonstrate at minimum 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in just a few minutes, and an experienced company expert in lending will contact you to assist you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License), an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details for application including credit consent, 12 months of bank records, IRD statements and the last two years’ finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K or more) we typically provide an answer in just one hour – as long as you submit your request at standard business times and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statements we can offer a decision in as little as an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be capable of provide you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this can be quicker based on the particular circumstances of each application. Some transactions have received approval within just 24 hours.
The fastest way can be ensure you apply during standard business hours, and allow us to use the modern bank verification to confirm your bank details online. If you choose to send us copies of your bank statements , it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within one hour – provided you apply during standard business hours and permit us to use the bank verification system link to immediately verify your bank account information online. If you want to upload copies of your banking statements, we are able to offer the decision in just one business day.
If you are applying for Larger Business Loans ($100K or more) we may be capable of provide you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Certain offers have been approved within just 24 hours.
The most effective method is to ensure you apply during normal business hours and let us use the modern bank verification to check your bank’s information online. If you decide to upload the copies of bank statements, it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a specific amount we take into consideration a range of elements in order to assess what is the health of your company as well as the amount of the repayments your business can support. The amount you receive from your loan will be contingent on the specific circumstances of your company.
When you make an application for a particular amount, we consider a variety of aspects to assess your well-being that is your company and the extent of payments your company is able to afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
What is the cost for the cost of a company loan?
When you make an application for the company loan, we’ll assess the risk profile of your company and provide you with a customised offer including loan amount, term and the interest rates. It is a company loan is an upfront cost loan so you will be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I am charged?
The interest rates on company loans rates differ based on various factors like the amount of money borrowed, what company assets the funds are used to purchase and the sector the business operates in, the long the company has been operating, how long the company has sufficient cash flow to support the loan, as well as the general well-being or financial standing of the business.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll know exactly how much it is that you need to pay, and when, right from the day you sign up. There’s no compounding interest and no additional fees (as as you make your payments in time).
We do not charge an application fee. You are able to apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of your loan in full at any time.
If you do decide to pursue this option, please call our helpful business loans professionals. The professionals will provide you with the details of your repayment as well as an early payout amount. This is calculated as the total of the principal remaining plus any accrued interest as of the date of early payout and 1.5% of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in with your cash flow routine, we provide repayments either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear the ways we gather information, use it, and exchange it, as well as secure your information, is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to customer security and security. We employ a highly sophisticated banking verification system to instantly verify your bank account details online so we can offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a business owner borrows from the assets they have to obtain the funds for a loan. The asset can be an asset belonging to the personal, like the family home, or it could be a business asset such as a truck as well as a piece of machine.
The majority of lenders, even the big banks, tend to guarantee loans against an asset. If you’re struggling to pay back the loan, then your assets could be taken over by the lender. In essence it’s an opportunity to secure new funding taking advantage of the value of what you already have.
Do I need security to get a company loan?
For loans of up to $150K, the requirement for asset security is not required before you can access the money, however we do require an individual guarantee. As long as you follow the terms of your loan (as stipulated in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans over $150,000 generally there is an individual guarantee and security in the form a charge over assets.