FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Mount Dandenong Small Business Loans
Tell me about the Mount Dandenong Small Business Loans
Mount Dandenong unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from a traditional company loan?
It is possible to apply to this Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and the money could be on your account within 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. This company loan is a loan that is priced upfront therefore you’ll know in advance the total amount to be paid, including the interest, fees and charges. This is then broken down into either a daily or weekly repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company need, such as managing cash flows, business remodels and marketing to purchase inventory, new equipment, for general working capital, and much more. The loan is not available for personal use.
About larger Mount Dandenong Business Loans
What is the Larger Mount Dandenong Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been operating for a minimum of 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used for nearly every business use, including company renovations, to purchase 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 requires security?
Asset security is required to obtain funding above $150,000. This can be done as a result of an charge over assets, and could include the registration of this with the PPSR or making a caveat.
A director’s or personal guarantee is a promise to repay a loan which is general in nature rather than stipulating security over a particular asset. The person who is signing the ensure is personally liable in the event that the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
An affidavit is an official form of document to provide an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250K we can offer an initial pre-approval to smooth out the process. We might be able to get this done without a credit check and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial health checks. This is not an offer or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you may receive may be subject to different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a 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 fast and easy. Simply complete the online form in few minutes and an experienced business credit specialist will contact you to guide you.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank records, IRD statement, last 2 years finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we can often provide an answer within an hour if you make your application in standard company time and permit us to use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements we can offer a decision in as little as an company day.
If you are applying for a Larger Business Loan ($100K or more) we could be able to provide you with a conditional pre-approval within 6 hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Certain offers have been approved within just 24 hours.
The most efficient method can be make sure you apply during normal company hours, and allow us to use the advance bank verification link to instantly verify your bank information online. If you decide to send us the copies of bank statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour – as long as you make your application during standard business times and let us use the bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements, we are able to provide the decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be capable of provide you with conditional pre-approval in about 6 hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain transactions have received approval in less than 24 hours.
The fastest way would be to make sure you apply during normal business hours. You can also let us use the modern bank verification to verify your bank information online. If you opt to upload documents from your account statements, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of aspects that determine what is the well-being for your business and the amount of payments your company is able to afford. The total amount of your loan will depend on the particular circumstances of your business.
When you submit an application for a set amount, we will consider a number of variables to determine the health for your company and the extent of payments your business can afford. The total amount of your loan will depend on the specifics of your business.
Fees & repayments
How do you charge for an business loan?
If you decide to request one of our business financing, we will assess the risk assessment that you have for your company and offer you with a customised offer, including the amount of loan, the term and the interest rates. The company loan is an upfront cost loan and you’ll be aware in advance of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Business loan interest rates vary due to factors such as the amount that is that is borrowed, what company assets the money will be used for and the sector the business operates in, the long the company has been in operation and what percentage of the business has enough cash flow to pay for the loan, and the general well-being as well as creditworthiness company.
What are the fees?
There are no hidden costs with our business loans, and you’ll know precisely how much it is that you need to pay and at what time, from day one. There’s not any compounding interest and no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can apply for a loan with without any upfront costs or commitment to apply.
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.
Can I pay out the loan early?
You can choose to repay all of your loan early at any time.
If you decide to pursue this option, please call our helpful business lending professionals. We will offer you with details on repayment along with an early payout estimate. This will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout plus 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payment dates and to align your cash flow schedule, we offer repayments either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being transparent about how we collect information, use it, and exchange it, as well as ensure the security of your information is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We make use of an advanced bank verification system link to instantly verify your bank account information online so we can provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from assets they own to get the loan. The asset may be a personal asset like the family home or a business property like a truck as well as a piece of machine.
The vast majority of lenders, including the largest banks, are inclined to secure loans against an asset. If you’re having trouble paying back the loan, your assets could be transferred to the lender. In essence, it’s a way of securing new funding using the value of what you already own.
What do I require security for a business loan?
For loans of up to $150,000, it is not necessary to secure assets upfront to access the money, however we do require an individual guarantee. In the event that you fulfill your loan obligations (as specified in the loan contract) the security of assets will never be required. For loans of over $150K generally there is a personal ensure and security in the form a charge over assets.