FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Doonside Small Business Loans
Tell me about the Doonside Small Business Loans
Doonside unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional company loan?
The application to the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and funds may be in your account in 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. This company loan is an upfront priced loan so you will know in advance the total amount due, which includes the interest, fees and charges. This is then broken down into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any business reason, such as cash flow management, business renovations, marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
Concerning Larger Doonside Business Loans
What is the Larger Doonside Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to be in operation for at least 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funds be used for?
A Larger Business Loan can be used for nearly every company need, including business remodeling, buying new equipment or inventory or as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This can be done as a result of an charge over assets, which could also be registered with the PPSR or making a caveat.
A personal or director’s guarantee is a promise to repay a loan which is generally based rather than stating security over an asset. The person signing the ensure is personally accountable if the company the borrower fails to pay back 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 objects or assets). The PPSR grants preference over private property granted according to the date the security interest has been registered.
An affidavit is an official document filed to provide the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250K, we may offer an initial pre-approval that will help make the process. We may be able to get this done without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial health questions. It is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you are offered could have 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 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form within a few minutes and a dedicated company expert in lending will contact you to assist you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent and 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour – as long as you apply in quality business time and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll provide an answer in just the span of one business day.
For the Larger Business Loan ($100K or more) we may be able to offer you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Some deals have been approved in 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal business hours. Also, allow us to use the advance bank verification link to instantly verify your bank account information online. If you opt to send us copies of your bank statements it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer within an hour – as long as you apply at standard business time and allow us to use the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statements we can offer an answer in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K or more) We may be able to offer you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved in just 24 hours.
The fastest way can be ensure you apply during standard business hours and permit us to use the advanced bank verification system to verify your bank information online. If you decide to upload documents from your account statements, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a particular amount, we consider a variety of factors in order to assess how much we can lend you health of the business and the amount of repayments your company is able to afford. The total amount of your loan will depend on the particular circumstances of your company.
When you apply for a particular amount, we consider a variety of variables to assess the well-being for your business and the extent of the repayments your business can support. The amount you receive from your loan will be determined by the specific circumstances the company.
Fees & repayments
How much do you charge for a company loan?
If you decide to make an application for the business loans, we’ll assess the risk profile that you have for your company and offer you with a tailored offer including the amount of the loan, the duration and interest rates. The business loan is a loan that is priced upfront which means you know the exact amount payable including any charges or interest.
What is the factor that determines the price I am charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, what company assets the money will be used for and the sector the company operates in, how long the company has been operating as well as whether the company has enough cash flow to fund the loan, and overall health and creditworthiness of the business.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll know precisely how much you be required to pay and at what time, from day one. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an Application Fee. You are able to apply for a loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan earlier?
You can choose to repay the total amount of your loan in full at any time.
If you decide to pursue this option, please call our helpful company lending experts. They’ll offer you with repayment details along with an early payout estimate. This is calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payment, plus 1.5 percent of the principal remaining as well as any outstanding fees.
What are the repayment methods?
To make sure you do not miss payments and to work with your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your 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 protect your information, is of huge importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We use an advanced bank verification system link to instantly verify your bank account details online to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from assets they own to make a loan. The asset may be an individual asset, such as the family home or a business asset such as a truck or other piece of machinery.
The vast majority of banks, including the largest banks, are inclined to guarantee loans against an asset. If you are having difficulty paying back the loan, the asset could be transferred to the lender. In essence it is means of securing new funding making use of the value of what you already have.
Are I need security to get a company loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds However, we do need an individual guarantee. If you adhere to the terms of your loan (as specified in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans over $150,000 typically, you will need an individual ensure and security is provided in the form of the charge of assets.