FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Jandakot Small Business Loans
Tell me what you think of the Jandakot Small Business Loans
Jandakot unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an traditional business loan?
The application to the Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and funds may be available in just 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. We offer a company loan is a pre-paid loan which means you know in advance the total amount to be paid, including any fees, interest or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business purpose including control of cash flow company improvements, advertising for purchasing inventory or new equipment, or as general working capital, and much more. The loan is not available for personal use.
About Larger Jandakot Business Loans
What is the Larger Jandakot Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been in operation for at least 3 years, and have an annual income of at least $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 prove at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost all business use, including business improvements, purchasing inventory or new equipment or as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This can be done in the form of a charge on assets, which could also include the registration of this with the PPSR or filing as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is generally in nature rather than specifying the security for a particular asset. The person signing the guarantee is personally liable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR permits priority over personal property to be assigned depending on the date that a security interest that is registered.
An affidavit is an official form of document to offer the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan of $250K or more we can offer a preliminary pre-approval to help make the process. It is possible to do this without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being checks. It’s neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you receive could be subject to different terms.
The application process
Do I have the right to receive funds?
You are eligible to 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)
- can demonstrate at least 6 months of trading (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in few minutes and a dedicated company credit specialist will contact you to guide you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License), an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent and 12 months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within one hour if you apply during quality business time and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements , we are able to offer an answer in just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to provide the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Some offers have been approved in 24 hours.
The most efficient method would be to make sure you apply during standard company hours. Also, allow us to use the advanced bank verification system to instantly verify your bank account information online. If you decide to upload the copies of bank accounts, it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour – as long as you make your application in standard business hours and let us use the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements, we’ll be able to provide a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) we may be capable of provide the conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The fastest way can be ensure you apply during standard business hours, and allow us to use our modern bank verification to instantly verify your bank account information online. If you choose to send us documents from your account accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a specific amount we consider a variety of elements for determining the health of the company and the level of repayments that your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances of your business.
If you apply for a set amount, we consider a variety of aspects to assess your health of your company and the extent of repayments that your company can afford. The amount you receive from the loan will be determined by the specifics the business.
Fees & repayments
How much should you charge for an business loan?
When you apply for our company loan, we will assess the risk assessment for your company and provide an individualised offer that includes the amount of the loan, the duration and the interest rates. This company loan is an upfront priced loan so you will be aware of the total amount to be paid, including any charges or interest.
What determines the rate that I will be charged?
Business loan interest rates vary due to factors like the amount of money borrowed, the business assets the funds are used to purchase in addition to the industry that the company is in, how long the company has been in operation, in the event that the business has sufficient cash flow to pay for the loan, as well as the overall health as well as creditworthiness business.
What are the fees?
There are no hidden fees with our business loans. You’ll know precisely how much you’ll need to pay, and when, starting from day one. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can apply for a loan with without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay off the loan early?
You can decide to repay the total amount of your loan early at any time.
If you choose to take this route, please contact our helpful business loan specialists. They will provide you with details for repayment along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining and any accrued interest at the time of early payment, plus 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange and protect your information, is of paramount importance and an integral aspect 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 sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We employ a highly sophisticated bank verification system that allows you to instantly verify the bank account details online. This allows us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from assets they own to make the funding. The asset could be a personal asset like the family home or an company property like a truck or piece of equipment.
The majority of the lenders including the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset could be offered for sale by the lender. In essence it’s an opportunity to secure additional financing using the worth of the asset you already have.
What do I require security to get an business loan?
Up to $150,000 in loans it is not necessary to secure assets prior to the loan’s access but we do require the personal guarantee. As long as you follow your loan obligations (as specified in your loan contract document) the security of assets will never be needed. For loans that exceed $150,000, typically, you will need personal ensure and security in the form an asset charge.