FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Delahey Small Business Loans
Let me know about the Delahey Small Business Loans
Delahey unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an traditional business loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and have the funds in your account in 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. The company loan is a loan that is priced upfront therefore you’ll be aware in advance of the total amount payable including any fees, charges or charges. This is then broken down into either weekly or daily 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 any business need, such as the management of cash flow, business remodels and marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
About the Larger Delahey Business Loans
What is the Larger Delahey Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to have been operating for at least three years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funds be utilised?
A larger company loan can be used for almost any company need, including business improvements, purchasing new equipment or inventory or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This can be done in the form of a charge against assets, which could also include the registration of this with the PPSR or making as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is general in nature rather than stipulating security over a particular asset. The person who signs the ensure is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including the assets or goods). The PPSR grants preference over private property granted according to the date the registration of a security interest.
An affidavit is an official document filed to provide the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000 we can offer a preliminary pre-approval to help smooth out the process. It is possible to do this without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health checks. This is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject a full credit assessment and any offer you may receive may be subject to different conditions.
The application process
Can I be eligible for funding?
You are eligible to apply for an business 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)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form 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 require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we typically offer an answer within an hour – as long as you apply in standard business times and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can offer an answer in just 1 company day.
For Larger Business Loans ($100K or more) we could be in a position to provide you with pre-approval conditional to your application in around six hours. After you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some agreements have been approved in 24 hours.
The fastest way is to ensure you apply during standard company hours. Also, allow us to use the modern bank verification link to check your bank’s information online. If you opt to send us the copies of bank statement, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within one hour, provided you submit your request during standard business timings and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we will be able to offer the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K and up) we could be likely to offer you with a conditional pre-approval within about 6 hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval in 24 hours.
The most effective method is to ensure you apply during normal business hours. You can also allow us to use the sophisticated bank verification to instantly verify your bank information online. If you decide to upload duplicates of your banking statement, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a certain amount we will consider a number of elements in order to assess how much we can lend you health that is your company and the level of the repayments your business is able to afford. The total amount of the loan will be determined by the specifics for your company.
When you apply for a set amount, we will consider a number of aspects to determine your health that is your company and the extent of the repayments your company can support. The total amount of your loan will be contingent on the specifics of your company.
Fees & repayments
What is the cost for an business loan?
If you decide to make an application for business loans with us company credit, we will assess the risk profile that you have for your business and offer you with a customised offer including the amount of the loan, the duration and the interest rates. It is a company loan is a loan that is priced upfront therefore you will be aware of the total amount due, which includes any charges, interest rates or fees.
What determines the amount I will be charged?
Business loan interest rates vary due to factors including the amount that is borrowed, what business assets the funds will be used for, the industry the business operates in, the long the company has been operating as well as how long the company has sufficient cash flow to pay for the loan, as well as the general health or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll know exactly how much it is that you need to pay and when, starting from the first day. There’s no compounding interest and no extra fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You are able to apply for a loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan earlier?
You can choose to repay the entire amount of your loan early at any time.
If you choose to pursue this option, please contact our helpful company loan specialists. The experts will offer you with repayment details and an early payment figure. This will be calculated as the sum of the principal remaining and the accrued interest up to the time of early payout, plus 1.5 percent of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line with your cash flow standard, we offer repayments that are either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about the ways we gather, use, exchange and secure your information, is of paramount importance and is a crucial element 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 dedication to customer security and privacy. We employ a highly sophisticated bank verification system link to immediately verify the bank account details online, allowing us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an business owner utilises the assets they have to secure the funds for a loan. The asset could be an individual asset, such as the family home, or an business property like a truck or other piece of machinery.
The vast majority of the lenders even the banks with the biggest size, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then the asset might be offered for sale by the lender. In essence, it’s the process of securing new financing using the worth of the asset you already have.
Are I need security to get an company loan?
For loans up to $150K there is no requirement for asset security before you are able to access the money However, we require a personal guarantee. require the personal guarantee. In the event that you fulfill the terms of your loan (as stated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally, there is personal ensure and security that is in the form charges on assets.