FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Daisy Hill Small Business Loans
Tell me how you are able to avail the Daisy Hill Small Business Loans
Daisy Hill unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from a traditional business loan?
You can apply for this Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans are based on an interest rate per annum as well as other fees and charges. This business loan is a cash-based loan therefore you’ll be aware of the total amount due, which includes any fees, charges or charges. This is then broken down into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business need, such as the management of cash flow, business renovations, marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Daisy Hill Business Loans
What is the Larger Daisy Hill Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the company needs to be in operation for at least 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used to fund almost every business purpose including company renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It’s in the form of a charge against assets and can include registering this through the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature, rather than stating security over an asset. The person who is signing the ensure is personally responsible if 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 contains security interests granted to individuals who own personal property (including goods or assets). The PPSR permits preference over private property assigned in accordance with the date on which a registration of a security interest.
Caveats are legal document lodged to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger business loans of $250,000 or more we can offer an initial pre-approval that will help smooth out the process. We could be able to do this without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health checks. It’s not an offer or guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer you are offered could be subject to different terms.
The application process
Do I have the right to receive funds?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a few minutes and a dedicated business expert in lending will be in touch to guide you through the process.
To apply for up to $100,000, you’ll need ID details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Information on the application including credit consent twelve months of bank statements, IRD statement, last 2 years finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) We can usually provide a response in one hour, provided you make your application during quality company time and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements , we are able to offer the decision in as little as an business day.
If you are applying for a Larger Business Loan ($100K or more) we might be likely to provide you with pre-approval conditional to your application in around six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain transactions have received approval in 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours. You can also permit us to use the modern bank verification link to instantly verify your bank account information online. If you choose to upload documents from your account statement, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer in just one hour, provided you apply during normal business timings and you allow 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 statements, we’ll be able to offer an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be likely to provide you with conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Certain agreements have been approved in just 24 hours.
The fastest way can be ensure you apply during standard business hours, and let us use the modern bank verification to instantly verify your bank account information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a specific amount we look at a variety of elements to determine the well-being of your business and the extent of payments your company can support. The amount you receive from your loan will depend on the specifics that are unique to your business.
When you submit an application for a specific amount we look at a range of variables to assess the well-being for your business as well as the amount of the repayments your business can support. The amount you receive from your loan will be contingent on the particulars for your business.
Fees & repayments
How much should you charge for an business loan?
When you make an application for our business loan, we’ll assess the risk profile the business and provide you with a customised proposal that includes the loan amount, the terms and interest rates. It is a company loan is an upfront cost loan and you’ll know in advance the total amount payable including any charges or interest.
What determines the amount I pay?
Business loan interest rates depend on several factors such as the amount that is of money borrowed, the company assets the funds are used to purchase in addition to the industry that the company is in, how long the business has been operating for, in the event that the company has enough cash flow to cover the loan, and also the general health as well as creditworthiness business.
What are the costs?
There aren’t any hidden costs with our business loans. You’ll know precisely how much it is that you need to pay, and at what time, from the day you sign up. There’s not any compounding interest and no extra fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You are able to apply for a loan no cost upfront or any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of your loan at any point in time.
If you do decide to pursue this option, please contact our helpful business loan professionals. They’ll provide you with details on repayment and an early payout figure. It will be calculated using the total of the remaining principal amount and accrued interest to the date of early payout, plus 1.5% of the remaining principal as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in with your cash flow standard, we provide payments that are either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about how we collect the information we collect, use, share and secure your information, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We employ a highly sophisticated bank verification system that allows you to immediately verify your bank account information online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner utilises assets they own to get the funds for a loan. The asset can be an asset belonging to the personal, like the family home, or an business asset such as a truck or piece of equipment.
The majority of lending institutions, even the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan, then the asset might be transferred to the lender. In essence, it is a way of securing new financing using the value of what you already have.
Do I need security to get a business loan?
For loans up to $150K the requirement for asset security is not required before you can access the money however, we do need the personal guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. If you take out loans in excess of $150K generally, you can get a personal guarantee and security in the form the charge of assets.