FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Keperra Small Business Loans
Let me know how you can avail the Keperra Small Business Loans
Keperra unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
The application to your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and the money could be on your account within 24 hours. Traditional company loans have an annual interest rate plus other fees and charges. This business loan is an upfront priced loan therefore you’ll know in advance the amount you will have to pay, including any interest, fees or charges. This is then divided into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every business use, including managing cash flows, company remodeling, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available to fund personal expenses.
About Larger Keperra Business Loans
What is the Larger Keperra Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be used for?
A larger company loan can be used to fund almost any company purpose including company improvements, purchasing equipment or inventory for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It is usually by way of charge on assets and can be registered with the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to repay a loan which is generally in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR grants priority over personal property to be granted depending on the date that a security interest was registered.
The caveat can be described as a formal document lodged to offer notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for a Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help smooth out the process. We may be able to make this decision without credit checks and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial well-being questions. This is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you receive could have different terms.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a few minutes and a dedicated company expert in lending will call you to assist you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent twelve months bank statement, an IRD statements Last 2 years’ finalised financial statements, and 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 or more) We can usually provide an answer within an hour – as long as you apply in quality company times and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements we can provide the decision in just 1 business day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be likely to provide the conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the circumstances of each application. Certain offers have been approved in less than 24 hours.
The most efficient method for you to apply is make sure you apply during normal business hours. Also, allow us to use the advanced bank verification system to instantly confirm your bank details online. If you choose to upload the copies of bank statement, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour, provided you make your application at standard business times and let us use the bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll offer a decision within the span of one business day.
For the Larger Business Loans ($100K and up) we might be likely to provide the conditional pre-approval in around six hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the specifics of each application. Some agreements have been approved within the space of 24 hours.
The quickest method would be to ensure you apply during standard business hours and allow us to use the advance bank verification link to instantly verify your bank account information online. If you opt to send us documents from your account accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we consider a variety of aspects in order to assess what is the health for your company and the extent of repayments that your business can afford. The total amount of the loan will be determined by the specifics that are unique to your business.
If you apply for a specific amount we take into consideration a variety of variables to determine how much we can lend you such as well-being of the company and the amount of payments your company can support. The amount you receive from your loan will depend on the particular circumstances the business.
Fees & repayments
How do you charge for a business loan?
If you decide to request business loans with us company loans, we’ll assess the risk assessment of your business and provide you with a customised offer including the amount of loan, the term and the interest rates. A company loan is an upfront priced loan and you’ll know the exact amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
The interest rates on company loans rates depend on several variables like the amount to be of money borrowed, the business assets the money will be used for as well as the field the business operates in, how long the business has been in operation, how long the company has sufficient cash flow to fund the loan, as well as the general health as well as creditworthiness company.
What are the costs?
There aren’t any hidden costs with our company loans. You’ll know exactly how much you need to pay and when, from day one. There’s no compounding interest and no extra fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You are able to get a cash loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan early?
You can repay the entire amount of the advance loan at any time.
If you are deciding to pursue this option, please contact our helpful business loans specialists. We will provide you with the details of your repayment as well as an early payout amount. It will be calculated using the sum of the principal remaining and the accrued interest up to the time of the early payout plus 1.5% of the principal balance plus any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss payments and to work your cash flow schedule, we provide payments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about the ways we gather data, process, exchange and ensure the security of your information is of huge importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We employ an exceptionally sophisticated bank verification system that allows you to immediately verify the bank account details online. This allows us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the business owner utilises an asset that they own to get the funds for a loan. The asset can be either an individual property, such as the family home or a company asset such as a truck or piece or equipment.
The vast majority of lenders, not just the major banks, prefer to make loans secured by an asset. If you’re having trouble paying back the loan then the asset might be taken over by the lender. In essence it’s the process of securing new financing by making use of the value of what you already own.
Should I require security to get an business loan?
For loans of up to $150,000, there is no requirement for asset security in advance to gain access to the funds However, we do require a personal guarantee. So long as you comply with the loan terms (as detailed in your loan contract document), asset security will never be required. If you take out loans in excess of $150,000 generally, there is a personal ensure and security is provided in the form of an asset charge.