FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Kangaroo Point Small Business Loans
Let me know about the Kangaroo Point Small Business Loans
Kangaroo Point unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from a traditional company loan?
Apply to get the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and the funds could be on your account within 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. Our business loan is a loan that is priced upfront so you will be aware of the amount you will have to pay, including any fees, charges or charges. This is then divided into weekly or daily repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company purpose including managing cash flows, business remodels and marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About larger Kangaroo Point Business Loans
What is the Larger Kangaroo Point Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. The repayments are made 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 which is calculated at 2.5% of the loan amount.
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 operating for at least three years and generate an annual revenue of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Business Loan of a larger size can be used to fund almost every business need, including company remodeling, buying inventory or new equipment for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. This is as a result of an charge on assets, and could include the registration of this with the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to repay credit that is generally in nature rather than stipulating security over an asset. The person who is signing the guarantee is personally accountable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR allows the priority of personal property granted according to the date a security interest was registered.
The caveat can be described as a formal document that is filed to offer the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan of more than $250K, we may offer an initial pre-approval to make the process. It is possible to apply for this without credit checks and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering some financial health checks. It’s in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer you are offered could be subject to different conditions.
The application process
Are I eligible for funding?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a few minutes and an experienced business lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour if you submit your request within quality company times and let us use the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we’ll be able to provide an answer in just an company day.
If you are applying for a Larger Business Loan ($100K or more) we might be likely to provide the conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based upon the circumstances for each application. Certain transactions have received approval within less than 24 hours.
The fastest way is to ensure you apply during standard business hours and allow us to use our advanced bank verification system link to check your bank’s information online. If you decide to upload duplicates of your banking statements it takes a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K or more) We can usually offer an answer in just one hour if you submit your request during standard business times and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statement, we’ll offer a decision in just one business day.
For the Larger Business Loans ($100K to $500K) We may be in a position to provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending on the specifics of each application. Certain offers have been approved in less than 24 hours.
The most efficient method can be ensure you apply during normal business hours, and permit us to use the modern bank verification link to instantly confirm your bank details online. If you upload the copies of bank statements it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a specific amount we will consider a number of aspects that determine the well-being of your company as well as the amount of repayments that your company is able to afford. The total amount of your loan will depend on the specifics for your company.
When you make an application for a set amount, we consider a variety of aspects to determine the health of your company and the amount of repayments that your company can support. The amount you receive from your loan will be contingent on the particulars of your company.
Fees & repayments
How do you charge for a company loan?
When you apply for one of our business loan, we will assess the risk profile the company and provide you with a tailored offer, including the amount of the loan, the duration and the interest rates. The company loan is an upfront cost loan and you’ll know in advance the total amount due, which includes any charges or interest.
What is the basis for the rate I pay?
Business loan interest rates depend on a variety of factors including the amount that is borrowed, what business assets the money will be used for in addition to the industry that the business operates in, the long the company has been operating, how long the business has enough cash flow to support the loan, as well as the overall well-being or financial standing of the business.
What are the costs?
There are no hidden costs for our business loans. You’ll know exactly how much you’ll need to pay, and when, from the very first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to make an application for loans without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You can repay all of your loan in full at any time.
If you do decide to pursue this option, please call our helpful business loan experts. The experts will provide you with repayment details and an early payout figure. This will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout and 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work with your cash flow routine, we offer repayments that are either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and knowing the ways we gather data, process, exchange and safeguard your data, is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We employ a highly sophisticated bank verification system that allows you to instantly confirm your bank account information online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from assets they own to get a loan. The asset can be an individual asset, such as the family home or a company asset such as a vehicle or other piece of machinery.
The majority of banks, not just the big banks, tend to make loans secured by an asset. If you are having difficulty paying back the loan, then the asset might be offered for sale by the lender. In essence, it’s an opportunity to secure new financing taking advantage of the value of what you already own.
Do I require security to get a business loan?
For loans that exceed $150K, there is no requirement for asset security prior to the loan’s access However, we do require the personal guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract document) Asset security is not required. For loans of over $150,000 generally there is a personal guarantee and security that is in the form an asset charge.