FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Days Bay Small Business Loans
Tell me what you think of the Days Bay Small Business Loans
Days Bay unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from an traditional company loan?
The application to the Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and have the funds available in just 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. Our business loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any fees, charges or charges. Then, it is broken down into either a daily or weekly payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business purpose including the management of cash flow, company remodels and marketing to purchase inventory, new equipment, for general working capital and so much more. The loan cannot be used for personal purposes.
About Larger Days Bay Business Loans
What is the Larger Days Bay Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate your cash flow.
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 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large the business needs to be in operation for at least 3 years and have an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as 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 company loan can be used for almost any business use, including company renovations, purchase of inventory or new equipment or as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It is usually by way of charge on assets, and could include registration in the PPSR or making as a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature, rather than stating security over an asset. The person signing the ensure is personally liable if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR gives the priority of personal property assigned in accordance with the date on which a security interest was registered.
Caveats are legal document filed to provide notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans of more than $250K it’s possible to offer an initial pre-approval that will help make the process. It is possible to do this without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial well-being questions. It’s neither an offer nor a guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you may receive may be subject to different terms.
Can I be eligible for funding?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in just a few minutes, and an experienced company expert in lending will call you to guide you through the process.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $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 such as age-related payables and aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we can often offer an answer within an hour – as long as you make your application in quality business timings and permit us to utilise the bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statements , we’ll be able to offer a decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we may be capable of offer you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain offers have been approved in 24 hours.
The most effective method is to ensure you apply during standard company hours and permit us to use the modern bank verification link to instantly verify your bank account information online. If you upload copies of your bank statements it takes a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide a response in one hour – as long as you submit your request within standard business hours and let us make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we are able to offer an answer in just the span of one business day.
If you are applying for Larger Business Loans ($100K and up) We may be likely to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some offers have been approved in less than 24 hours.
The fastest method is to make sure you apply during normal business hours, and permit us to use the modern bank verification to verify your bank information online. If you opt to upload the copies of bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a particular amount, we look at a variety of factors for determining how much we can lend you well-being that is your company as well as the amount of repayments your company can support. The total amount of your loan will be contingent on the particular circumstances for your company.
When you apply for a certain amount, we consider a variety of variables to assess your health that is your company and the level of repayments that your company can support. The amount you receive from the loan will be determined by the specifics for your business.
Fees & repayments
How do you charge for a business loan?
If you decide to apply for the company loan, we’ll assess the risk assessment of your business and provide you with a customised offer including loan amount, term and the interest rates. This business loan is an upfront-priced loan and you’ll know the exact amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I’m charged?
The interest rates on company loans rates differ based on various factors such as the amount that is of money borrowed, the business assets the money will be used for and the sector the business is in, how long the business has been in operation for, whether the business has sufficient cash flow to cover the loan, and general well-being or creditworthiness of the company.
What are the costs?
There are no hidden fees with our company loans. You’ll know exactly how much you’ll be required to pay and when, starting from the very first day. There’s no compounding interest, and no extra fees (as as you make your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You can decide to repay the total amount of your loan in full at any time.
If you choose to do this please contact our helpful company credit professionals. They will offer you with the details of your repayment and an early payment figure. This will be calculated as the total of the principal remaining plus any accrued interest as of the date of early payout in addition to 1.5 percent of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments that are either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing how we collect data, process, exchange and ensure the security of your information is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We make use of an advanced bank verification system to instantly verify your bank account information online to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from an asset that they own to make the funds for a loan. The asset can be a personal asset like the family home or it could be a company asset like a truck or piece or equipment.
The vast majority of the lenders including the largest banks, are inclined to guarantee loans against assets. If you’re having trouble paying back the loan, your asset may be transferred to the lender. In essence it’s an opportunity to secure new funding making use of the value of what you already own.
Should I require security for a company loan?
For loans that exceed $150K, no asset security is required upfront to access the money but we do need a 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 will never be needed. For loans of over $150K generally, you are able to get the option of a personal guarantee and security in the form charges on assets.