FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Daceyville Small Business Loans
Let me know what you think of the Daceyville Small Business Loans
Daceyville unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from the traditional business loan?
It is possible to apply to get this Small Business Loan in under 10 minutes by phone. You will receive an instant response and funds may be in your account within 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. This company loan is a loan that is priced upfront and you’ll be aware of the total amount to be paid, including any interest, fees 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?
A Small Business Loan can be used for nearly any company reason, such as control of cash flow company remodels and marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used for personal use.
Concerning Larger Daceyville Business Loans
What is the Larger Daceyville Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be trading for at least 3 years and have an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be used for?
A large company loan can be used for almost any company reason, such as company renovations, purchase of inventory or new equipment for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It’s as a result of an charge on assets, and may include registering this in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally in nature rather than stating the security for a particular asset. The person who signs the ensure is personally liable in the event that the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR permits the priority of personal property granted in accordance with the date on which a registration of a security interest.
Caveats are legal document filed to offer the legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250,000, we may offer a preliminary pre-approval to help ease the process. We may be able to apply for this without credit checks and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial well-being questions. This is not an offer of credit or guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer you are offered could be on different conditions.
The application process
Are I eligible for funding?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form in just a few minutes, and a dedicated company loan specialist will call you to guide you through the process.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent and 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour – as long as you apply in standard business time and let us use the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements , we are able to provide the decision in as little as the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we could be able to offer the conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this can be quicker based on the specifics of each application. Some offers have been approved within the space of 24 hours.
The quickest method is to ensure you apply during normal business hours. You can also allow us to use our advance bank verification to confirm your bank details online. If you opt to send us copies of your bank accounts, it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) we usually offer an answer in just one hour – as long as you apply in standard business time and you allow us to use the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statement, we’ll provide the decision within one business day.
For the Larger Business Loans ($100K or more) We may be likely to offer you with pre-approval conditional to your application in around six hours. After you’ve signed the 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. Some deals have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. Also, allow us to use our modern bank verification link to instantly verify your bank information online. If you opt to send us documents from your account statements it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount, we will consider a number of elements in order to assess the well-being that is your company as well as the amount of the repayments your business can support. The amount you receive from the loan will be determined by the specifics that are unique to your company.
When you apply for a certain amount, we consider a variety of factors to assess how much we can lend you such as health for your company as well as the amount of payments your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances the company.
Fees & repayments
How much should you charge for an business loan?
If you decide to request our company loan, we’ll assess the risk assessment of your company and provide you with a tailored offer that includes the loan amount, the terms and interest rates. It is a company loan is an upfront priced loan therefore you will be aware in advance of the total amount payable including any charges, interest rates or fees.
What determines the amount I am charged?
Interest rates for business loans rates depend on several factors like the amount of money borrowed, the business assets the money are used to purchase as well as the field the company operates in, the long the company has been operating, how long the company has enough cash flow to cover the loan, and the overall health or financial standing of the business.
What are the charges?
There aren’t any hidden costs for our company loans, and you’ll know exactly how much it is that you be required to pay and when, starting from the day you sign up. There’s not any compounding interest and no extra fees (as long as you make your payments punctually).
We do not charge an application fee. You can apply for a loan no cost upfront or commitment to apply.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you decide to take 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 repay all of your loan in full at any time.
If you are deciding to do this please speak to our friendly business loan specialists. We will provide you with details on repayment and an early payment figure. The figure will be calculated as the sum of the principal amount remaining and accrued interest to the date of early payout in addition to 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payment dates and to align your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect data, process, exchange and ensure the security of your information is of paramount importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We make use of an advanced banking verification system to immediately confirm your bank account information online, allowing us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner uses an asset that they own to make the loan. The asset may be an asset belonging to the personal, like the family home, or an business asset such as a truck or other piece of machinery.
The majority of banks, even the big banks, tend to secure loans against an asset. If you have trouble paying back the loan then your assets could be transferred to the lender. In essence it’s the process of securing new funding making use of the value of what you already have.
Are I require security to secure a company loan?
For loans up to $150,000 it is not necessary to secure assets before you can access the money but we do require the personal guarantee. As long as you follow your loan commitments (as specified in the loan contract) Asset security will never be needed. For loans that exceed $150K, typically, you will need the option of a personal guarantee and security that is in the form the charge of assets.