FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Kallangur Small Business Loans
Tell me how you are able to avail the Kallangur Small Business Loans
Kallangur unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
The application to get your Small Business Loan in under 10 minutes online or over the phone, receive a same day response and have the funds available in just 24 hours. Traditional business loans are based on an annual rate of interest plus other fees and charges. This company loan is an upfront priced loan which means you be aware of the total amount payable including any fees, charges or charges. This is then broken down into weekly or daily installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business reason, such as managing cash flows, business remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal reasons.
About Larger Kallangur Business Loans
What is the Larger Kallangur Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to be in operation for at least 3 years and generate an annual revenue of $700K. The applicant must also 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 to demonstrate at least 12 months of trading.
What can I use the funds for?
A Larger Business Loan can be used for nearly all business reason, such as company improvements, purchasing new equipment or inventory, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is in the form of a charge against assets, and may include registering this on the PPSR or making a caveat.
A director’s or personal ensure is a commitment to repay a loan which is generally based rather than specifying security over a particular asset. The person who is signing the ensure is personally accountable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
An affidavit is an official document filed to offer an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K we can offer a preliminary pre-approval to help make the process. We could be able to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health checks. It’s in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you receive could be based on different conditions.
Application process
Do I qualify for funds?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Complete the online form in few minutes and a dedicated business lending specialist will be in touch to help you.
To apply for up $100,000 you’ll require ID details (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour if you apply at standard company times and allow us to utilise the bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statement, we’ll provide the decision in as little as one business day.
For the Larger Business Loan ($100K and up) we may be in a position to offer you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Some offers have been approved in the space of 24 hours.
The fastest way would be to ensure you apply during normal business hours and allow us to use our modern bank verification to confirm your bank details online. If you opt to upload documents from your account accounts, it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we usually provide a response in one hour – provided you submit your request at normal business time and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statements, we will be able to provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be in a position to provide the conditional pre-approval within six hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some transactions have received approval within just 24 hours.
The fastest method would be to ensure you apply during standard business hours, and allow us to use our sophisticated bank verification to instantly verify your bank information online. If you upload documents from your account statement, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we take into consideration a range of variables in order to assess the well-being that is your business as well as the amount of payments your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your business.
When you apply for a set amount, we will consider a number of elements to assess how much we can lend you such as health of your business and the extent of repayments your business can support. The total amount of your loan will be determined by the particulars the business.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to request one of our company credit, we’ll assess the risk assessment the company and offer you with a customised offer including the amount of the loan, the duration and interest rates. It is a company loan is an upfront priced loan so you will know the exact amount to be paid, including any interest rates, fees or charges.
What determines the amount I am charged?
Business loan interest rates depend on several factors like the amount of money that is borrowed, what business assets the funds will be used for, the industry the business is operating in, how long the business has been running for, how long the business has sufficient cash flow to pay for the loan, and also the overall health as well as creditworthiness company.
What are the cost?
There are no hidden fees for our business loans. You’ll be aware of the amount you need to pay, and when, starting from the very first day. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments on time).
We don’t charge an application fee. You can make an application for loans with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay off the loan early?
You can choose to repay the entire amount of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful company lending professionals. They will offer you with details on repayment as well as an early payout amount. The figure will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payment and 1.5% of the principal balance 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 cycle we offer repayments that are either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about how we collect data, process, exchange and protect your information, is of paramount 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 standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We employ an exceptionally sophisticated bank verification system to instantly verify your bank account information online, allowing us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an company owner borrows from an asset they own to get a loan. The asset can be a personal asset like the family home, or a business asset like a truck as well as a piece of machine.
The vast majority of banks, including the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan then the asset might be sold by the lender. In essence it’s an opportunity to secure new financing by using the worth of the asset you already own.
Do I require security for a company loan?
For loans that exceed $150,000, there is no requirement for asset security prior to the loan’s access however, we do require the personal guarantee. So long as you comply with your loan commitments (as stated in your loan contract document), asset security is not needed. For loans that exceed $150,000, typically, you will need the option of a personal guarantee and security in the form a charge over assets.