FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Dover Gardens Small Business Loans
Let me know more about Dover Gardens Small Business Loans
Dover Gardens unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an traditional business loan?
The application to your Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and the money could be on your account within 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. Our company loan is a pre-paid loan so you will be aware in advance of the total amount to be paid, including any fees, charges or charges. This is then broken down into weekly or daily 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 managing cash flows, company remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal reasons.
Concerning Larger Dover Gardens Business Loans
What is the Larger Dover Gardens 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 for a fixed period of up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company 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) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can the funding be used for?
A large company loan can be used to fund almost every business need, including company improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This can be done by taking a charge on assets, and could be registered on the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is general in nature, rather than specifying security over an asset. The person who is signing the ensure is personally liable in the event that the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR grants preference over private property granted in accordance with the date on which a security interest has been registered.
An affidavit is an official document filed to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan of $250,000 or more, we may offer an initial pre-approval that will help smooth out the process. It is possible to apply for this without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health checks. It’s in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you receive could be subject to different conditions.
Application process
Are I eligible for funding?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form within a few minutes and an experienced company credit specialist will be in touch to assist you.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Application details including credit consent, 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically offer an answer within one hour, provided you submit your request during standard company hours and let us utilise the bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements we can provide an answer within just an business day.
For the Larger Business Loan ($100K to $500K) we could be capable of offer the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Some offers have been approved within 24 hours.
The quickest method is to make sure you apply during normal company hours and let us use the modern bank verification to instantly verify your bank account information online. If you upload duplicates of your banking accounts, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we usually provide an answer in just one hour if you apply in normal business times and allow us to use the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statements, we will be able to provide the decision in as little as 1 business day.
For Larger Business Loans ($100K or more) we might be able to provide you with a conditional pre-approval within 6 hours. Once you’ve signed your pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this can be faster depending on the particular circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours. You can also let us use the advanced bank verification system link to confirm your bank details online. If you opt to send us the copies of bank statements, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a specific amount we consider a variety of elements to determine the health that is your business and the amount of repayments your company will be able to support. The amount you receive from your loan will be contingent on the particular circumstances of your business.
When you make an application for a specific amount we will consider a number of aspects to assess how much we can lend you such as health for your business and the extent of repayments your company can support. The total amount of the loan will be determined by the particulars for your business.
Fees & repayments
How much should you charge for a company loan?
If you decide to request our business loans, we’ll assess the risk profile the company and offer you with a tailored offer that includes the loan amount, the terms and interest rates. It is a company loan is an upfront priced loan which means you be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates vary due to factors such as the amount that is that is borrowed, what business assets the funds will be used for as well as the field the business is operating in, how long the company has been in operation for, whether the company has sufficient cash flow to cover the loan, and the overall health and creditworthiness of the company.
What are the costs?
There aren’t any hidden costs with our business loans. You’ll know precisely what you’ll be required to pay and when, from day one. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You can request a credit loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can repay the total amount of your loan early at any time.
If you do decide to pursue this option, please talk to one of our helpful business lending professionals. We will offer you with repayment details as well as an early payout amount. This is calculated as the sum of the remaining principal amount and any accrued interest at the time of early payout and 1.5 percent of the principal amount remaining plus any outstanding fees.
What are the repayment methods?
To help you avoid missing payments and to work with your cash flow general, we provide repayments either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about how we collect data, process, exchange and secure 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 use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of customers and security. We employ a highly sophisticated bank verification system link to immediately verify the bank account details online, allowing us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner uses an asset that they own to secure a loan. The asset can be an individual asset, such as the family home or a company asset such as a vehicle or other piece of machinery.
The majority of lending institutions, not just the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan, the asset might be taken over by the lender. In essence, it is an opportunity to secure additional financing making use of the value of what you already own.
Should I need security for an business loan?
For loans of up to $150,000, the requirement for asset security is not required in advance to gain access to the funds, however we require a personal guarantee. require a personal guarantee. If you adhere to your loan commitments (as detailed in your loan contract document) the security of assets will never be needed. If you take out loans in excess of $150,000 generally, you are able to get a personal ensure and security in the form of a charge over assets.