FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Five Dock Small Business Loans
Let me know about the Five Dock Small Business Loans
Five Dock unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from an traditional business loan?
The application to your 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 are based on an annual rate of interest along with other charges and fees. This company loan is a cash-based loan and you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. This is then divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company purpose including the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal use.
About larger Five Dock Business Loans
What is the Larger Five Dock Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the company needs to be in operation for at least 3 years and have an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A larger business loan can be used to fund almost every company purpose including company remodeling, buying new equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This is by taking a charge over assets and can include registration with the PPSR or the registration of as a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally based rather than stating security over a particular asset. The person signing the guarantee is personally responsible if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR allows the priority of personal property granted according to the date the registration of a security interest.
An affidavit is an official form of document to provide an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger business loans that is greater than $250K it is possible to offer an initial pre-approval that will help ease the process. We might be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial health checks. It is neither an offer nor a guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer you are offered could be subject to different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and a dedicated business loan specialist will be in touch to help you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Information on the application including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically provide an answer in just one hour – as long as you apply at quality business hours and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statements , we will be able to provide the decision in just one business day.
For Larger Business Loans ($100K or more) we may be in a position to provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved in 24 hours.
The most efficient method is to ensure you apply during normal company hours and permit us to use the advance bank verification link to instantly check your bank’s information online. If you choose to send us documents from your account statements , it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we can often provide an answer within one hour if you apply at normal business hours and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statements, we are able to provide an answer in just 1 business day.
For the Larger Business Loans ($100K to $500K) we might be able to offer you with conditional pre-approval in around six hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain transactions have received approval in 24 hours.
The most efficient method is to ensure you apply during standard business hours. You can also allow us to use the advance bank verification to verify your bank account information online. If you opt to upload the copies of bank statements, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a specific amount we consider a variety of aspects in order to assess how much we can lend you health for your company and the level of payments your company will be able to support. The amount you receive from your loan will depend on the specifics that are unique to your company.
When you make an application for a certain amount, we will consider a number of aspects to determine your well-being that is your company and the amount of repayments your company can support. The amount you receive from your loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for the cost of a business loan?
When you apply for business loans with us company loan, we will assess the risk profile that you have for your business and provide you with a customised offer including the loan amount, the terms and the interest rates. It is a company loan is an upfront priced loan therefore you will know in advance the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I pay?
Interest rates for company loans rates differ based on various factors including the amount that is borrowed, what company assets the money will be used for as well as the field the company operates in, how long the company is in operation, whether the business has sufficient cash flow to cover the loan, and the general health or financial standing of the business.
What are the fees?
There are no hidden fees with our business loans. You’ll be aware of the amount you’ll be required to pay, and when, right from the very first day. There’s no compounding interest and no extra fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan early?
You can choose to repay all of your loan early at any time.
If you are deciding to take this route, please call our helpful business credit experts. We will offer you with details for repayment along with an early payout estimate. It will be calculated using the sum of the principal remaining and the accrued interest up to the date of early payout in addition to 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow standard, we provide payments that are either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about how we collect data, process, exchange and protect your information, is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We utilise a sophisticated bank verification system to immediately verify your bank account details online, allowing us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner makes use of assets they own to make the funds for a loan. The asset can be an asset belonging to the personal, like the family home or it could be a business asset such as a vehicle or other piece of machinery.
The vast majority of lenders, including the largest banks, are inclined to secure loans against an asset. If you are having difficulty paying back the loan, the asset might be sold by the lender. In essence, it is the process of securing new financing by making use of the value of what you already have.
Do I need security to secure an business loan?
For loans up to $150K it is not necessary to secure assets in advance to gain access to the funds However, we require a personal guarantee. require an individual guarantee. As long as you follow the loan terms (as detailed in the loan contract) the security of assets will never be required. For loans that exceed $150,000, generally there is personal guarantee and security in the form a charge over assets.