FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Devon Park Small Business Loans
Let me know more about Devon Park Small Business Loans
Devon Park unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and the money could be in your account within 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. This business loan is a pre-paid loan which means you know ahead of time the total amount payable including any interest, fees or charges. This is then broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company purpose including managing cash flows, company remodels and marketing to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used to fund personal expenses.
About Larger Devon Park Business Loans
What is the Larger Devon Park Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to be trading for at least 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A larger business loan can be used to fund almost all business use, including company renovations, purchase of new equipment or inventory or as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It is usually as a result of an charge over assets, and could be registered through the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally based rather than stating the security for a particular asset. The person signing the guarantee is personally liable in the event that the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR allows preference over private property assigned depending on the date that a security interest has been registered.
The caveat can be described as a formal document that is filed to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan that is greater than $250,000 we can offer a preliminary pre-approval to help make the process. It is possible to get this done without a credit check, and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial health questions. It’s neither an offer nor a guarantee of credit. A conditional approval is subject an exhaustive credit evaluation, and any offer you are offered could have different terms.
Application process
Are I eligible for funding?
You can apply for an business 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)
- must show at least six months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in few minutes and a dedicated company lending specialist will contact you to guide you through the process.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s License), a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent, 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour – as long as you submit your request during standard business time and let us utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements , we will be able to offer a decision in just one company day.
For the Larger Business Loan ($100K and up) we might be capable of provide you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard business hours and allow us to use the advance bank verification to verify your bank information online. If you decide to send us documents from your account statement, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour – provided you submit your request within normal business time and let us utilise the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements, we are able to provide the decision within 1 business day.
If you are applying for Larger Business Loans ($100K or more) We may be likely to offer you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within 24 hours.
The most effective method would be to ensure you apply during standard business hours. You can also permit us to use the modern bank verification to check your bank’s information online. If you opt to send us the copies of bank statement, it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you make an application for a specific amount we will consider a number of variables for determining your well-being of the company as well as the amount of 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 make an application for a specific amount we take into consideration a variety of elements to determine how much we can lend you such as health of the business and the level of repayments that your company is able to afford. The total amount of your loan will be determined by the specifics for your company.
Fees & repayments
How much should you charge for a business loan?
If you decide to apply for business loans with us business loans, we will assess the risk assessment that you have for your business and provide you with a tailored offer, including the amount of loan, the term and interest rates. It is a business loan is an upfront-priced loan which means you know the exact amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I will be charged?
Business loan interest rates differ based on various variables like the amount to be that is borrowed, what business assets the funds will be used for in addition to the industry that the company operates in, the long the company is in operation and in the event that the company has sufficient cash flow to support the loan, and also the general well-being as well as creditworthiness business.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much it is that you be required to pay, and when, right from day one. There’s not any compounding interest and no additional fees (as long as you make your payments punctually).
We don’t charge an application fee. You can get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan in advance?
You can decide to repay the entire amount of your loan early at any time.
If you decide to do this please talk to one of our helpful company lending experts. They will provide you with the details of your repayment and an early payment figure. The figure will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payment, plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear the ways we gather, use, exchange and safeguard your data, 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 employ industry-recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We use an advanced bank verification system to immediately confirm your bank account information online, allowing us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an company owner makes use of assets they own to get the funding. The asset can be an asset belonging to the personal, like the family home, or it could be a business asset such as a truck or other piece of machinery.
The majority of lenders, not just the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan then your asset may be offered for sale by the lender. In essence, it is an opportunity to secure new financing by using the worth of the asset you already have.
Should I need security to get a business loan?
Up to $150K in loans the requirement for asset security is not required prior to the loan’s access however, we do require the personal guarantee. As long as you follow your loan commitments (as specified in the loan contract) and you are able to meet your obligations, asset security is not required. For loans that exceed $150K, generally there is personal guarantee and security in the form a charge over assets.