FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Dewhurst Small Business Loans
Tell me how you are able to avail the Dewhurst Small Business Loans
Dewhurst unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from the traditional company loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and funds may be in your account within 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. We offer a company loan is a loan that is priced upfront and you’ll be aware of the amount you will have to pay, including any fees, charges or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company reason, such as cash flow management, company remodels and marketing, to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal use.
About larger Dewhurst Business Loans
What is the Larger Dewhurst Business Loan?
The Larger Business Loan is a larger loan size to support 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, depending on the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to be operating for at least three years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A larger business loan is a great option for almost any company need, including company remodeling, buying new equipment or inventory for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This is in the form of a charge on assets, which could also include registration with the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature rather than stating security over a particular asset. The person who is signing the ensure 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 operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be assigned according to the date the security interest was registered.
The caveat can be described as a formal form of document to offer an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan of $250,000 or more we can offer a preliminary pre-approval to help simplify the process. We could be able to get this done without a credit check, and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial well-being checks. It is not an offer or guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you might receive could be on different terms.
The 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, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in just a few minutes, and a dedicated company loan specialist will contact you to assist you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License) as well as an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Information on the application including credit consent, 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we typically provide a response in one hour, provided you make your application during standard business timings and you allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we are able to offer the decision within one business day.
For the Larger Business Loan ($100K or more) we might be likely to provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard business hours. Also, allow us to use our modern bank verification link to instantly confirm your bank details online. If you choose to upload the copies of bank statement, it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we usually provide an answer within an hour if you submit your request at normal business times and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statement, we’ll offer an answer in just one business day.
For Larger Business Loans ($100K to $500K) we could be capable of provide you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some deals have been approved in just 24 hours.
The fastest method can be make sure you apply during normal business hours, and let us use the sophisticated bank verification to check your bank’s information online. If you upload duplicates of your banking statement, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of elements in order to assess how much we can lend you well-being of the company and the amount of payments your business will be able to support. The total amount of your loan will be contingent on the specific circumstances the business.
If you apply for a particular amount, we take into consideration a variety of variables to assess the well-being for your company as well as the amount of payments your business will be able to support. The total amount of your loan will be contingent on the specifics of your company.
Fees & repayments
How much should you charge for an company loan?
If you decide to apply for business loans with us business loans, we will assess the risk assessment for your business and provide you with a customised offer, including the amount of loan, the term and the interest rates. A business loan is an upfront-priced loan therefore you will be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I’m charged?
Business loan interest rates vary due to factors including the amount borrowed, the business assets the money will be used for as well as the field the company operates in, the long the business has been running, whether the company has enough cash flow to support the loan, and overall health and creditworthiness of the business.
What are the fees?
There are no hidden costs for our business loans. You’ll know exactly how much it is that you be required to pay, and at what time, from the first day. There’s no compounding interest and there are no additional charges (as as long as you pay your payments in time).
We don’t charge an application fee. You are able to request a credit loan without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I repay the loan early?
You can choose to repay the entire amount of the loan in full at any time.
If you do decide to do this please talk to one of our helpful company credit specialists. We will provide you with repayment details as well as an early payout amount. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payout in addition to 1.5 percent of the principal remaining and any outstanding fees.
How do repayments work?
To make sure you do not miss due dates and also to be in line your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and is a crucial aspect 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 personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We employ a highly sophisticated bank verification system to immediately verify the bank account details online to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a business owner borrows from assets they own to get a loan. The asset can be either an individual property, such as the family home or a company asset like a truck as well as a piece of machine.
The majority of lenders, even the largest banks, are inclined to secure loans against assets. If you’re having trouble paying back the loan, then the asset could be sold by the lender. In essence it is an opportunity to secure new funding using the value of what you already own.
Are I require security for an business loan?
For loans that exceed $150K, it is not necessary to secure assets prior to the loan’s access however, we do need an individual guarantee. As long as you follow your loan obligations (as detailed in the loan contract), asset security is not needed. For loans of over $150,000 typically, you will need an individual guarantee and security that is in the form the charge of assets.