FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Daw Park Small Business Loans
Tell me about the Daw Park Small Business Loans
Daw Park unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
You can apply to your Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and funds may be in your account in 24 hours. Traditional company loans are based on an annual interest rate together with additional fees and charges. The business loan is a cash-based loan and you’ll be aware in advance of the total amount to be paid, including the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company need, such as cash flow management, business improvements, advertising to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
About larger Daw Park Business Loans
What is the Larger Daw Park Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used to fund almost every company use, including company renovations, purchase of new equipment or inventory or as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It is usually by way of charge over assets and can include registering this through the PPSR or filing as a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is generally based rather than specifying security over a particular asset. The person who signs the ensure is personally liable in the event that the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR grants preference over private property granted depending on the date that a security interest was registered.
The caveat can be described as a formal form of document to offer an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 we can offer an initial pre-approval that will help ease the process. We might be able to get this done without a credit check, and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial health checks. This is neither an offer nor a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer you are offered could be subject to different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form in few minutes and an experienced company expert in lending will be in touch to assist you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, and interim current financial year financials as well as Aged Payables and Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we usually offer an answer within one hour, provided you submit your request within standard business time and allow us to use the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements , we will be able to offer an answer in just one company day.
If you are applying for a Larger Business Loan ($100K or more) we may be in a position to offer you with conditional pre-approval in about six hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain transactions have received approval within just 24 hours.
The fastest way is to make sure you apply during standard business hours, and let us use the advanced bank verification system to instantly verify your bank information online. If you decide to upload documents from your account statements it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour – as long as you make your application during standard business timings and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statement, we’ll provide the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be likely to offer the conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Certain agreements have been approved in 24 hours.
The quickest method would be to ensure you apply during normal business hours, and allow us to use our modern bank verification link to confirm your bank details online. If you upload documents from your account statements it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we will consider a number of variables in order to assess what is the well-being that is your business as well as the amount of repayments that your company can afford. The amount you receive from your loan will be contingent on the specifics for your business.
When you submit an application for a certain amount, we will consider a number of aspects to determine the well-being of your business and the level of repayments that your business will be able to support. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to make an application for business loans with us business loans, we’ll assess the risk profile for your company and provide an individualised offer that includes loan amount, term and interest rates. The company loan is an upfront priced loan therefore you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
The interest rates on company loans rates differ based on various factors including the amount borrowed, what company assets the money are used to purchase, the industry the business is operating in, how long the business has been in operation, whether the company has sufficient cash flow to pay for the loan, and the general health or creditworthiness of the company.
What are the cost?
There are no hidden costs with our business loans, and you’ll be aware of the amount it is that you need to pay and when, starting from the very first day. There’s no compounding and no extra fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to request a credit loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You may choose to pay back the total amount of your loan in full at any time.
If you choose to do this please talk to one of our helpful business lending professionals. They will offer you with repayment details and an early payment figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of early payment, plus 1.5% of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and safeguard your data, is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We utilise a sophisticated bank verification system link to instantly confirm your bank account information online. This allows us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the company owner makes use of an asset they own to make the loan. The asset can be an individual asset, such as the family home, or a company property like a truck or other piece of machinery.
The majority of banks, including the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan, then your assets could be taken over by the lender. In essence it’s an opportunity to secure new funding using the value of what you already have.
Are I require security for 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 require a personal guarantee. need the personal guarantee. So long as you comply with your loan obligations (as stated in your loan contract), asset security will never be required. For loans of over $150K generally, you are able to get the option of a personal ensure and security that is in the form a charge over assets.