FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Daw Park Small Business Loans
Tell me how you can avail the Daw Park Small Business Loans
Daw Park unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
The application to your Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and the money could be in your account within 24 hours. Traditional business loans are based on an annual rate of interest along with other charges and fees. Our business loan is a loan that is priced upfront and you’ll be aware of the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company need, such as control of cash flow company remodeling, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Daw Park Business Loans
What is the Larger Daw Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to be operating for at least three years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A large company loan can be used for nearly every business need, including company improvements, purchasing equipment or inventory as well as for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This is by taking a charge on assets and can be registered on the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to repay credit that is generally in nature rather than stating security over an asset. The person who signs the ensure is personally liable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including goods or assets). The PPSR permits the priority of personal property granted in accordance with the date on which a security interest was registered.
The caveat can be described as a formal document filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250,000 we can offer a preliminary pre-approval to help make the process. It is possible to apply for this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health questions. It’s not an offer or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could be based on different terms.
The application process
Can I be eligible for funding?
You may be eligible for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a few minutes and an experienced company lending specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details for application including credit consent and 12 months of bank records, IRD statements, last 2 years finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually provide an answer in just one hour, provided you apply during quality company hours and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements we can provide a decision within 1 company day.
If you are applying for a Larger Business Loan ($100K and up) we may be capable of provide you with conditional pre-approval within 6 hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Some agreements have been approved within less than 24 hours.
The most effective method for you to apply is ensure you apply during normal company hours. Also, let us use the advanced bank verification system link to instantly confirm your bank details online. If you choose to upload duplicates of your banking statements it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer in just one hour – as long as you make your application within normal business time and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements, we are able to provide an answer in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K or more) We may 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 upon the circumstances for each application. Some offers have been approved in 24 hours.
The fastest way would be to ensure you apply during standard business hours, and permit us to use the advance bank verification to instantly confirm your bank details online. If you choose to upload the copies of bank statements, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of aspects for determining your health of the business and the level of the repayments your business is able to afford. The total amount of the loan will be determined by the specifics that are unique to your business.
When you submit an application for a particular amount, we take into consideration a variety of aspects to determine the well-being that is your business and the amount of repayments that your company can support. The amount you receive from your loan will be determined by the specifics that are unique to your business.
Fees & repayments
What is the cost for a business loan?
When you request business loans with us business loans, we will assess the risk assessment for your company and provide you with a tailored proposal that includes the loan amount, the terms and the interest rates. The company loan is an upfront-priced loan therefore you will be aware in advance of the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I’m charged?
The interest rates on business loans rates vary due to factors such as the amount that is borrowed, what business assets the funds are used to purchase in addition to the industry that the business operates in, how long the company has been operating and in the event that the company has enough cash flow to fund the loan, and overall health or financial standing of the business.
What are the charges?
There aren’t any hidden costs with our business loans, and you’ll know precisely how much you be required to pay and when, starting from the first day. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to make an application for loans with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay all of your loan early at any time.
If you do decide to do this please contact our helpful business credit experts. We will provide you with repayment details along with an early payout estimate. This is calculated as the sum of the principal amount remaining and the accrued interest up to the date of early payout plus 1.5 percent of the principal balance and any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear the ways we gather the information we collect, use, share and safeguard your data, is vital and is an essential 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 standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We utilise a sophisticated banking verification system to immediately verify your bank account details online, allowing us to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses the assets they have to secure the funding. The asset could be a personal asset like the family home, or it could be a business asset such as a truck or piece or equipment.
The vast majority of banks, not just the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, your asset may be sold by the lender. In essence it is a way of securing additional financing using the value of what you already own.
Should I need security to secure an company loan?
For loans that exceed $150,000, the requirement for asset security is not required prior to the loan’s access, however we require a personal guarantee. need a personal guarantee. If you adhere to your loan commitments (as stated in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150,000, generally, you are able to get a personal ensure and security is provided in the form of charges on assets.