FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Dural Small Business Loans
Let me know about the Dural Small Business Loans
Dural unsecured loans provides 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 this Unsecured Loan different from a traditional business loan?
Apply to your Small Business Loan in under 10 minutes online or over the phone. You’ll get a same day response and have the funds on your account within 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. Our business loan is a pre-paid loan so you will be aware in advance of the total amount due, which includes the interest, fees and charges. This is then broken down into either weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company use, including the management of cash flow, business remodels and marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal purposes.
About larger Dural Business Loans
What is the Larger Dural 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 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to be trading for at least 3 years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan can be used for nearly all company need, including company remodeling, buying inventory or new equipment for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. This is in the form of a charge over assets, and may include registration on the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature, rather than stipulating the security for a particular asset. The person who signs the ensure is personally responsible if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
Caveats are legal form of document to provide the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan of $250,000 or more it is possible to offer an initial pre-approval in order to ease the process. We could be able to apply for this without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health questions. It is neither an offer nor a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you may receive may be based on different terms.
The application process
Are I eligible for funding?
You can apply for an 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 of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in just a few minutes, and an experienced business credit specialist will be in touch to help you.
To apply for up to $100,000 you’ll need proof of identity (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent and 12 months of bank records, IRD statement and the last two years’ finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we can often provide an answer within an hour if you make your application at standard business timings and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statement, we’ll provide a decision in just one business day.
For Larger Business Loans ($100K up to $500,000) we could be in a position to provide you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some deals have been approved within just 24 hours.
The most effective method would be to ensure you apply during standard company hours. Also, permit us to use the advance bank verification link to instantly check your bank’s information online. If you send us the copies of bank statement, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often offer a response in one hour – as long as you submit your request within standard business hours and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your bank statement, we’ll provide a decision within an business day.
If you are applying for Larger Business Loans ($100K and up) we could be likely to offer you with a conditional pre-approval within six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Certain agreements have been approved in the space of 24 hours.
The most effective method would be to ensure you apply during normal business hours and permit us to use the advance bank verification to instantly verify your bank account information online. If you opt to send us documents from your account statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a specific amount we consider a variety of factors for determining what is the well-being of your company and the level of repayments that your company can afford. The amount you receive from the loan will be determined by the specifics for your business.
When you submit an application for a particular amount, we take into consideration a variety of aspects to assess how much we can lend you such as well-being that is your company as well as the amount of repayments that your business will be able to support. The amount you receive from your loan will depend on the particular circumstances the business.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to apply for business loans with us company financing, we’ll assess the risk profile the company and offer you with a tailored offer that includes loan amount, term and interest rates. The company loan is an upfront-priced loan and you’ll be aware of the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I pay?
Business loan interest rates depend on a variety of variables like the amount to be borrowed, the company assets the funds will be used for as well as the field the company operates in, the long the business has been operating for, how long the company has enough cash flow to support the loan, as well as the overall health as well as creditworthiness business.
What are the charges?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you’ll need to pay, and when, starting from the first day. There’s not any compounding interest and no extra fees (as as you make your payments punctually).
We do not charge an application fee. You are able to make an application for loans without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay the entire amount of the advance loan at any time.
If you choose to do this please call our helpful business loan professionals. They’ll provide you with details for repayment as well as an early payout amount. This is calculated as the total of the remaining principal amount and any accrued interest at the date of early payout in addition to 1.5 percent of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow routine, we provide payments that are either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being clear about the ways we gather information, use it, and exchange it, as well as safeguard your data, is of huge importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We employ an exceptionally sophisticated banking verification system to immediately verify the bank account details online so we can offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner borrows from assets they own to make the funds for a loan. The asset may be an asset belonging to the personal, like the family home, or it could be a company asset such as a truck or piece or equipment.
The vast majority of lenders, even the largest banks, are inclined to secure loans against assets. If you are having difficulty paying back the loan then the asset might be taken over by the lender. In essence, it’s a way of securing additional financing using the value of what you already own.
Are I need security to secure an company loan?
Up to $150K in loans no asset security is required in advance to gain access to the funds but we do need a personal guarantee. So long as you comply with the loan terms (as detailed in the loan contract) and you are able to meet your obligations, asset security is not required. For loans over $150,000 typically, you will need a personal ensure and security in the form of a charge over assets.