FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Five Dock Small Business Loans
Let me know what you think of the Five Dock Small Business Loans
Five Dock unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and have the funds on your account within 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. This business loan is a cash-based loan and you’ll know in advance the total amount due, which includes any interest, fees or charges. This is then divided into weekly or daily repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every company reason, such as cash flow management, company improvements, advertising, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
Concerning 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 company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to be operating for at least three years with an annual turnover 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 business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funds for?
A Larger Business Loan can be used for almost all company reason, such as company improvements, purchasing equipment or inventory, as 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 necessary for funding of more than $150,000. It’s by taking a charge against assets, and may include the registration of this on the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally based rather than specifying the security of a specific asset. The person who signs the ensure is personally accountable if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR permits the priority of personal property granted in accordance with the date on which a security interest was registered.
An affidavit is an official form of document to offer notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan of $250,000 or more we may be able to provide a preliminary pre-approval to help smooth out the process. We could be able to get this done without a credit check and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial health questions. It’s not an offer of credit or guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer you may receive may be subject to different conditions.
Application process
Can I be eligible for funding?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Just complete the online application within a couple minutes, and a dedicated business expert in lending will call you to assist you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent as well as 12 months of bank records, IRD statements, last 2 years finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we usually provide an answer in just one hour – as long as you make your application within standard business time and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements , we will be able to provide an answer within 1 company day.
If you are applying for a Larger Business Loan ($100K and up) we may be able to offer you with a conditional pre-approval within about six hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours and permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you choose to send us duplicates of your banking statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within an hour, provided you make your application within standard business hours and you allow us to use the bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statements, we are able to provide a decision in just 1 business day.
For Larger Business Loans ($100K or more) we may be likely to provide you with conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Some deals have been approved within the space of 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours and permit us to use the sophisticated bank verification to instantly verify your bank account 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 submit an application for a certain amount, we consider a variety of aspects that determine what is the well-being that is your business and the amount of payments your company is able to afford. The total amount of the loan will be determined by the particular circumstances the business.
When you make an application for a certain amount, we will consider a number of factors to determine how much we can lend you such as health of the company and the amount of repayments that your business can support. The total amount of your loan will depend on the specifics for your business.
Fees & repayments
How much do you charge for a business loan?
When you make an application for our business credit, we’ll assess the risk profile the business and offer you with a customised offer, including loan amount, term and the interest rates. The company loan is an upfront-priced loan therefore you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I’m charged?
Interest rates for business loans rates depend on several factors including the amount borrowed, what company assets the money are used to purchase as well as the field the company is in, how long the company has been running, whether the business has sufficient cash flow to support the loan, and the overall health or financial standing of the business.
What are the costs?
There are no hidden costs for our business loans. You’ll know precisely how much it is that you need to pay and when, right from the very first day. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan earlier?
You can repay all of your advance loan at any time.
If you are deciding to take this route, please speak to our friendly business loans professionals. They’ll provide you with details on repayment as well as an early payout amount. The figure will be calculated as the total of the principal balance and the accrued interest up to the time of the early payout in addition to 1.5 percent of the remaining principal plus any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being upfront about how we collect information, use it, and exchange it, as well as safeguard your data, is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We use an advanced bank verification system link to immediately verify your bank account information online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner makes use of an asset they own to obtain the funds for a loan. The asset could be an asset belonging to the personal, like the family home or it could be a business asset like a truck or other piece of machinery.
The vast majority of lending institutions, including the banks with the biggest size, prefer to make loans secured by assets. If you’re having trouble paying back the loan, the asset might be offered for sale by the lender. In essence, it’s a way of securing new financing making use of the value of what you already own.
What do I require security for a business loan?
For loans that exceed $150K, no asset security is required before you are able to access the money however, we do require an individual guarantee. As long as you follow the loan terms (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150,000 generally, there is the option of a personal ensure and security is provided in the form of a charge over assets.