FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Kurwongbah Small Business Loans
Tell me how you are able to avail the Kurwongbah Small Business Loans
Kurwongbah unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
It is possible to apply for your Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and the funds could be in your account within 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. We offer a company loan is a cash-based loan therefore you’ll be aware of the total amount to be paid, including the interest, fees and charges. This is then divided into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business purpose including control of cash flow company remodels and marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Kurwongbah Business Loans
What is the Larger Kurwongbah Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to be operating for at least three years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can the funds be used for?
A Business Loan of a larger size can be used to fund almost every business use, including business remodeling, buying inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This is as a result of an charge over assets, and may be registered in the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is generally in nature rather than specifying the security for a particular asset. The person who is signing the ensure is personally accountable if the company borrower is unable to pay back 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 that are registered for personal property (including goods or assets). The PPSR grants preference over private property assigned depending on the date that a registration of a security interest.
Caveats are legal document filed to provide the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan that is greater than $250K we can offer an initial pre-approval in order to make the process. We might be able to do this without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial health checks. It is not an offer or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you might receive could be subject to 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 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in just a few minutes, and an experienced business credit specialist will contact you to help you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s License), an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Application details including credit consent twelve months of bank records, IRD statements Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within one hour, provided you submit your request at quality company timings and let us utilise the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements , we are able to offer an answer within just one company day.
If you are applying for a Larger Business Loan ($100K or more) we may be in a position to offer you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain agreements have been approved in less than 24 hours.
The quickest method is to ensure you apply during normal company hours and allow us to use our advanced bank verification system link to verify your bank account information online. If you opt to send us copies of your bank statements , it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within one hour if you apply during normal business time and permit us to use the bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to offer the conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Some deals have been approved within just 24 hours.
The fastest method is to ensure you apply during normal business hours, and let us use the modern bank verification link to instantly verify your bank account information online. If you decide to send us the copies of bank statements, it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we take into consideration a range of aspects that determine what is the well-being that is your business and the amount of repayments that your business will be able to support. The amount you receive from your loan will be contingent on the particular circumstances of your company.
When you make an application for a specific amount we consider a variety of variables to determine your health of your business and the extent of repayments that your company will be able to support. The amount you receive from your loan will depend on the particulars the company.
Fees & repayments
What is the cost for a business loan?
If you decide to make an application for business loans with us company loan, we will assess the risk profile the company and provide you with a tailored proposal that includes the amount of the loan, the duration and the interest rates. The business loan is an upfront cost loan so you will know in advance the total amount payable including any charges, interest rates or fees.
What determines the amount I pay?
Interest rates for company loans rates depend on several factors including the amount borrowed, the business assets the money will be used for as well as the field the business is in, how long the company is in operation as well as how long the company has enough cash flow to pay for the loan, and the general health as well as creditworthiness business.
What are the fees?
There are no hidden fees with our business loans, and you’ll be aware of the amount it is that you need to pay, and at what time, from the first day. There’s no compounding and no additional fees (as long as you are able to make your payments punctually).
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 costs associated with 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 in advance?
You may choose to pay back the entire amount of your loan at any point in time.
If you choose to do this please speak to our friendly company credit professionals. We will provide you with repayment details along with an early payout estimate. The figure will be calculated as the total of the principal balance and the accrued interest up to the time of the early payout and 1.5 percent of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
To make sure that you don’t miss payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and an integral 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 secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We make use of an advanced bank verification system to instantly verify your bank account information online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner utilises an asset they own to get a loan. The asset could be a personal asset like the family home, or an business asset such as a truck as well as a piece of machine.
The vast majority of lenders, even the big banks, tend to guarantee loans against assets. If you’re struggling to pay back the loan, then the asset might be transferred to the lender. In essence it is means of securing new financing by taking advantage of the value of what you already own.
Are I require security to secure a business loan?
Up to $150,000 in loans the requirement for asset security is not required in advance to gain access to the funds, however we do require a personal guarantee. So long as you comply with the terms of your loan (as detailed in your loan contract) Asset security is not needed. For loans of over $150K typically, you will need the option of a personal guarantee and security in the form the charge of assets.