FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Dolans Bay Small Business Loans
Let me know how you can avail the Dolans Bay Small Business Loans
Dolans Bay unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an traditional company loan?
It is possible to apply for this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get a same day response and have the funds in your account within 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. This company loan is a cash-based loan therefore you’ll be aware in advance of the total amount to be paid, including any interest, fees or charges. Then, it is divided into weekly or daily payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business need, such as cash flow management, company improvements, advertising to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Dolans Bay Business Loans
What is the Larger Dolans Bay Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to be in operation for at least 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly all company reason, such as company remodeling, buying inventory or new equipment as well as 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 required to access funding over $150,000. This is as a result of an charge against assets, and could include the registration of this through the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is general in nature, rather than defining security over an asset. The person signing the guarantee is personally liable in the event that the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR gives priority over personal property to be assigned according to the date a security interest has been registered.
The caveat can be described as a formal document filed to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans of $250,000 or more, we may offer an initial pre-approval to make the process. We may be able to apply for this without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial health checks. It’s in no way an offer, nor is it a guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you might receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You may apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a couple minutes, and an experienced business expert in lending will be in touch to help you.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within an hour if you make your application during standard business timings and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements we can provide a decision within the span of one business day.
For the Larger Business Loan ($100K and up) we could be capable of provide the conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this can be quicker based upon the circumstances for each application. Some transactions have received approval within less than 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours and permit us to use the advance bank verification to verify your bank information online. If you decide to upload duplicates of your banking statements , it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within one hour – as long as you submit your request at normal business times and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statement, we’ll offer a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be able to provide you with conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some deals have been approved within 24 hours.
The quickest method would be to make sure you apply during normal business hours. Also, allow us to use the sophisticated bank verification to instantly verify your bank information online. If you choose to send us duplicates of your banking statement, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount we consider a variety of aspects in order to assess how much we can lend you well-being that is your business as well as the amount of the repayments your company will be able to support. The total amount of your loan will depend on the specific circumstances for your company.
When you submit an application for a specific amount we look at a range of elements to assess your well-being of your company and the level of the repayments your business is able to afford. The amount you receive from the loan will be determined by the particulars of your company.
Fees & repayments
How much should you charge for the cost of a business loan?
When you make an application for one of our company credit, we’ll assess the risk profile the company and provide you with a customised proposal that includes the amount of the loan, the duration and the interest rates. This company loan is an upfront-priced loan so you will be aware in advance of the total amount payable including any charges or interest.
What is the basis for the rate I am charged?
Interest rates for business loans rates vary due to variables like the amount to be borrowed, the company assets the money are used to purchase as well as the field the business operates in, the long the business has been in operation as well as in the event that the company has sufficient cash flow to pay for the loan, and general health as well as creditworthiness business.
What are the costs?
There aren’t any hidden costs with our company loans, and you’ll know exactly how much you’ll need to pay, and at what time, from the first day. There’s no compounding and no additional fees (as long as you make your payments punctually).
We don’t charge an application fee. You are able to request a credit loan with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can repay the entire amount of the loan at any point in time.
If you decide to do this please talk to one of our helpful business loan professionals. We will offer you with details on repayment and an early payment figure. This will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout in addition to 1.5% of the principal remaining as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payments and to work your cash flow schedule, we provide payments that are either daily or weekly. They will be automatically deducted from your business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear the ways we gather data, process, exchange and safeguard your data, is of paramount importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We utilise a sophisticated banking verification system to immediately confirm your bank account information online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner utilises the assets they have to get a loan. The asset can be either an individual property, such as the family home or it could be a company asset such as a truck or piece or equipment.
The vast majority of lending institutions, not just the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan then the asset might be offered for sale by the lender. In essence, it’s means of securing additional financing taking advantage of the value of what you already have.
Are I need security to secure a business loan?
Up to $150,000 in loans no asset security is required in advance to gain access to the funds, however we require a personal guarantee. need an individual guarantee. If you adhere to your loan obligations (as detailed in your loan contract) the security of assets will never be required. For loans that exceed $150,000, generally, there is an individual ensure and security in the form of charges on assets.