FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Dutton Park Small Business Loans
Let me know 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, cash flow friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from the traditional business loan?
You can apply to get this Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and funds may be available in just 24 hours. Traditional company loans refer to an interest rate per annum together with additional fees and charges. We offer a company loan is an upfront priced loan and you’ll know ahead of time the total amount due, which includes any interest, fees or charges. This is then broken down into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company use, including cash flow management, company remodels and marketing to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal use.
About Larger Dutton Park Business Loans
What is the Larger Dutton Park Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to have been trading for at least 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be utilised?
A larger company loan can be used for almost every company purpose including company renovations, to purchase new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This is in the form of a charge over assets, which could also include registering this on the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally in nature rather than stating the security of a specific asset. The person who signs the ensure is personally liable in the event that the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR permits the priority of personal property assigned according to the date a security interest that is registered.
The caveat can be described as a formal document filed to offer the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan of more than $250,000, we may offer an initial pre-approval in order to simplify the process. We could be able to apply for this without a credit check and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering some financial health questions. It is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you receive could be subject to different terms.
The application process
Do I have the right to receive funds?
You may 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)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a few minutes and a dedicated business credit specialist will contact you to help you.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s License), an active NZBN/IRD, and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour – as long as you apply in quality company hours and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll offer an answer in as little as the span of one business day.
For the Larger Business Loan ($100K or more) we may be in a position to provide you with a conditional pre-approval in around six hours. After you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this can be quicker based on the specifics of each application. Some agreements have been approved within 24 hours.
The quickest method is to ensure you apply during normal company hours. You can also permit us to use the advanced bank verification system to check your bank’s information online. If you opt to upload documents from your account statements , it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer a response in one hour – as long as you apply during normal business times and let us use the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll offer a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K or more) we could be likely to offer you with a conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval in the space of 24 hours.
The quickest method is to ensure you apply during normal business hours. Also, permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you opt to upload documents from your account statements, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a specific amount we take into consideration a range of variables for determining what is the health of the company and the extent of the repayments your business can afford. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
When you make an application for a certain amount, we will consider a number of aspects to assess your health of your business and the extent of payments your business will be able to support. The total amount of your loan will be determined by the specifics for your company.
Fees & repayments
How do you charge for a company loan?
If you decide to apply for the company loan, we will assess the risk profile for your company and provide you with a customised offer, including loan amount, term and interest rates. The company loan is a loan that is priced upfront so you will be aware of the total amount you will have to pay, including charges or interest.
What determines the amount I am charged?
Business loan interest rates depend on several factors including the amount of money borrowed, the business assets the funds are used to purchase, the industry the business is operating in, how long the company has been in operation for, in the event that the business has sufficient cash flow to support the loan, and general well-being or financial standing of the business.
What are the fees?
There aren’t any hidden costs with our business loans. You’ll know exactly how much it is that you need to pay and when, right from the first day. There’s no compounding interest and no extra fees (as as long as you pay your payments on time).
We don’t charge an application fee. You can make an application for loans without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with establishing 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 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can choose to repay all of your loan at any point in time.
If you decide to take this route, please talk to one of our helpful business loans professionals. The experts will provide you with repayment details and an early payment figure. The figure will be calculated as the total of the remaining principal amount and any accrued interest at the time of early payout plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing payments and to work your cash flow schedule, we provide payments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about the ways we gather the information we collect, use, share and ensure the security of your information is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We use an advanced bank verification system to immediately verify your bank account details online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner utilises the assets they have to secure the loan. The asset can be either an individual asset, such as the family home, or it could be a business asset such as a vehicle or other piece of machinery.
The majority of the lenders not just the big banks, tend to secure loans against an asset. If you are having difficulty paying back the loan, then the asset could be sold by the lender. In essence it’s means of securing new funding using the worth of the asset you already have.
Should I need security to get a business loan?
Up to $150K in loans there is no requirement for asset security in advance to gain access to the funds However, we do need a personal guarantee. If you adhere to your loan commitments (as specified in the loan contract) Asset security is not required. For loans of over $150,000 generally, you are able to get a personal guarantee and security that is in the form the charge of assets.