FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Kuraby Small Business Loans
Let me know how you can avail the Kuraby Small Business Loans
Kuraby unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from an ordinary business loan?
You can apply for the 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 available in just 24 hours. Traditional business loans have an annual interest rate along with other charges and fees. We offer a business loan is an upfront priced loan so you will be aware of the amount you will have to pay, including any fees, interest or charges. This is then broken down into either a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any business use, including cash flow management, business renovations, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Kuraby Business Loans
What is the Larger Kuraby Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to have been in operation for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funding for?
A large company loan can be used to fund almost any company reason, such as company renovations, purchase of equipment or inventory as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It’s in the form of a charge over assets, and could include registration on the PPSR or making as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is generally based rather than defining the security for a particular asset. The person who signs the guarantee is personally responsible if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR permits priority over personal property to be granted according to the date the security interest that is registered.
Caveats are legal form of document to provide an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval that will help make the process. It is possible to do this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial well-being questions. This is neither an offer nor a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you might receive could be based on different conditions.
Application process
Are I eligible for funding?
You can apply for a business 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 you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Complete the online form within a couple minutes, and a dedicated business credit specialist will be in touch to guide you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Application details including credit consent, 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we can often provide an answer within one hour – as long as you apply at standard company time and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements , we are able to provide an answer in as little as the span of one business day.
For Larger Business Loans ($100K and up) we might be likely to provide you with conditional pre-approval in around six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based on the circumstances of each application. Certain agreements have been approved within less than 24 hours.
The quickest method is to ensure you apply during normal business hours, and allow us to use the advance bank verification to instantly verify your bank account information online. If you decide to send us duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we can often offer an answer within an hour – provided you submit your request in standard business time and allow us to use the bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements, we are able to offer an answer within one business day.
For the Larger Business Loans ($100K or more) we may be able to provide you with conditional pre-approval within 6 hours. Once you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain deals have been approved in just 24 hours.
The quickest method can be ensure you apply during normal business hours, and allow us to use our modern bank verification link to confirm your bank details online. If you upload the copies of bank statements it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of elements to determine the well-being of the company and the level of the repayments your business is able to afford. The amount you receive from the loan will be determined by the particular circumstances that are unique to your company.
If you apply for a set amount, we will consider a number of variables to determine the health for your business as well as the amount of the repayments your business can support. The amount you receive from your loan will be determined by the particulars of your company.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to make an application for business loans with us company loan, we’ll assess the risk assessment that you have for your company and offer you with a tailored offer including loan amount, term and interest rates. It is a business loan is an upfront cost loan which means you know in advance the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates differ based on various factors like the amount of money borrowed, the company assets the funds will be used for in addition to the industry that the business is operating in, how long the company has been in operation for, what percentage of the company has enough cash flow to fund the loan, and overall health as well as creditworthiness business.
What are the cost?
There are no hidden costs for our company loans. You’ll know precisely what you need to pay and when, from the day you sign up. There’s no compounding and no extra fees (as as long as you pay your payments on time).
We don’t charge an Application Fee. You are able to get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan earlier?
You can repay the total amount of your loan in full at any time.
If you are deciding to do this please speak to our friendly company credit specialists. They’ll provide you with repayment details along with an early payout estimate. The figure will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of early payment, plus 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing payment dates and to align your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about the ways we gather, use, exchange and protect your information, is crucial and is an essential aspect 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 secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and security. We make use of an advanced bank verification system link to instantly verify your bank account information online so we can provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner uses an asset they own to make the funding. The asset could be a personal asset like the family home or it could be a company asset such as a truck or piece or equipment.
The vast majority of lending institutions, even the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, the asset might be transferred to the lender. In essence, it is means of securing new funding using the worth of the asset you already own.
Do I require security to secure a business loan?
For loans up to $150K no asset security is required upfront to access the money but we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract document) the security of assets is not required. For loans that exceed $150K, generally, you can get the option of a personal ensure and security that is in the form an asset charge.