FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Docklands Small Business Loans
Let me know what you think of the Docklands Small Business Loans
Docklands unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
The application to get the Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and the funds could be in your account in 24 hours. Traditional business loans reference an annual rate of interest plus other fees and charges. We offer a business loan is a cash-based loan so you will be aware of the total amount due, which includes the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any business need, such as the management of cash flow, business remodels and marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Docklands Business Loans
What is the Larger Docklands Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are scheduled 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 calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be trading for at least 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funding be used for?
A Business Loan of a larger size can be used to fund almost every company reason, such as business improvements, purchasing equipment or inventory or as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. This is by taking a charge over assets and can be registered in the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature, rather than specifying the security for a particular asset. The person signing the guarantee is personally responsible if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR permits the priority of personal property assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal document lodged to provide the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of more than $250,000 it’s possible to offer an initial pre-approval that will help simplify the process. We might be able to do this without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial health questions. This is not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you are offered could be on different conditions.
Application process
Can I be eligible for funding?
You can apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a couple minutes, and a dedicated company loan specialist will be in touch to guide you through the process.
For a loan of up to $100,000 you’ll require proof of identity (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $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, last 2 years finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within one hour, provided you submit your request within standard business timings and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements , we’ll be able to offer a decision within just 1 business day.
For the Larger Business Loan ($100K up to $500,000) we may be likely to offer you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be quicker based on the particular circumstances of each application. Certain offers have been approved within just 24 hours.
The quickest way to apply would be to make sure you apply during standard company hours and allow us to use the advance bank verification to instantly verify your bank information online. If you upload the copies of bank statement, it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we typically provide an answer within an hour – as long as you apply within normal business timings and you allow us to use the bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statement, we’ll offer a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be likely to provide the conditional pre-approval in around six hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be faster depending on the particular circumstances of each application. Some transactions have received approval in the space of 24 hours.
The fastest way would be to make sure you apply during normal business hours. You can also let us use the advanced bank verification system to instantly check your bank’s information online. If you decide to upload duplicates of your banking statement, it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a certain amount we look at a variety of factors to determine what is the well-being that is your business and the level of repayments that your company will be able to support. The total amount of your loan will depend on the specifics the company.
When you make an application for a set amount, we look at a range of factors to determine your well-being of your company and the extent of payments your business will be able to support. The total amount of your loan will be determined by the specifics of your business.
Fees & repayments
How do you charge for an business loan?
If you decide to make an application for one of our business credit, we’ll assess the risk assessment for your business and provide an individualised offer that includes the loan amount, the terms and the interest rates. A business loan is an upfront cost loan so you will be aware in advance of the total amount you will have to pay, including charges or interest.
What determines the rate that I’m charged?
The interest rates on company loans rates differ based on various factors including the amount that is borrowed, what company assets the funds will be used for in addition to the industry that the company is operating in, how long the company has been operating as well as whether the business has enough cash flow to cover the loan, as well as the overall well-being or creditworthiness of the company.
What are the costs?
There are no hidden fees with our business loans. You’ll know precisely how much it is that you be required to pay, and when, right from the very first day. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay out the loan earlier?
You can choose to repay the total amount of your loan early at any time.
If you are deciding to do this please talk to one of our helpful business credit professionals. They’ll provide you with details for repayment and an early payout figure. The figure will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payout plus 1.5% of the principal balance as well as any outstanding fees.
What are the repayment methods?
To make sure you do not miss due dates and also to be in line with your cash flow cycle we offer repayments either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about the ways we gather the information we collect, use, share and safeguard your data, is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to customer security and security. We make use of an advanced bank verification system to immediately confirm your bank account information online so we can provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of an asset that they own to secure the funds for a loan. The asset could be an asset belonging to the personal, like the family home, or an business property like a truck or piece or equipment.
The majority of lenders, not just the banks with the biggest size, prefer to secure loans against assets. If you are having difficulty paying back the loan then your asset may be offered for sale by the lender. In essence it is a way of securing new financing taking advantage of the value of what you already own.
Do I require security to secure a company loan?
Up to $150K in loans it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. So long as you comply with the loan terms (as specified in your loan contract) Asset security is not needed. For loans that exceed $150,000, typically, you will need a personal guarantee and security that is in the form the charge of assets.