FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kallaroo Small Business Loans
Tell me how you can avail the Kallaroo Small Business Loans
Kallaroo unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an traditional business loan?
The application to get the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and the funds could be in your account within 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. The company loan is a pre-paid loan therefore you’ll know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into either weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business purpose including managing cash flows, company remodeling, marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan is not available for personal use.
About larger Kallaroo Business Loans
What is the Larger Kallaroo Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been in operation for at least 3 years and have an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used for nearly all business use, including company renovations, purchase of inventory or new equipment for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. This can be done as a result of an charge against assets and can include registering this in the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally in nature rather than stating security over a particular asset. The person who signs the ensure is personally liable in the event that the company creditor is unable 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 objects or assets). The PPSR permits priority over personal property to be granted according to the date the security interest has been registered.
An affidavit is an official form of document to offer notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger business loans that exceeds $250,000 we can offer an initial pre-approval that will help ease the process. It is possible to do this without a credit check, and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial health questions. It’s not an offer or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer that you receive could be on different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own 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 three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just complete the online application within a couple minutes, and a dedicated business credit specialist will call you to assist you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we usually offer a response in one hour, provided you apply in standard business hours and let us utilise the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements , we will be able to offer the decision in as little as the span of one business day.
For the Larger Business Loan ($100K and up) we might be in a position to provide you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Certain offers have been approved within just 24 hours.
The most efficient method would be to ensure you apply during normal business hours. Also, permit us to use the advance bank verification to verify your bank account information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within one hour – provided you make your application during normal business hours and let us utilise the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statement, we’ll provide a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K and up) we could be able to offer you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved within 24 hours.
The most effective method for you to apply is ensure you apply during normal business hours, and let us use the advanced bank verification system link to instantly verify your bank account information online. If you send us the copies of bank statements, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a certain amount we consider a variety of aspects for determining how much we can lend you health of the company and the level of repayments your company will be able to support. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
When you submit an application for a specific amount we take into consideration a variety of variables to determine how much we can lend you such as health of the company as well as the amount of repayments that your company will be able to support. The amount you receive from your loan will be determined by the specifics for your business.
Fees & repayments
How much do you charge for an business loan?
If you decide to request our company credit, we’ll assess the risk assessment for your company and provide an individualised proposal that includes loan amount, term and the interest rates. The business loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I will be charged?
Interest rates for business loans rates differ based on various variables like the amount to be of money borrowed, the business assets the funds are used to purchase and the sector the company is in, how long the business has been running and what percentage of the company has sufficient cash flow to pay for the loan, and also the general well-being or creditworthiness of the company.
What are the cost?
There aren’t any hidden charges for our business loans. You’ll be aware of the amount it is that you be required to pay, and when, right from the very first day. There’s no compounding interest, and no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to apply for a loan with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan early?
You can decide to repay the total amount of your loan in full at any time.
If you are deciding to take this route, please talk to one of our helpful business loan experts. The professionals will offer you with the details of your repayment 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 date of early payout in addition to 1.5% of the remaining principal plus any outstanding fees.
What is the process for repayments?
To make sure you do not miss payments and to work your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being upfront about the ways we gather, use, exchange and secure your information, is of huge importance and an integral part 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 as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We make use of an advanced bank verification system that allows you to immediately verify the bank account details online so we can offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner utilises an asset they own to secure the funds for a loan. The asset could be a personal asset like the family home or a business asset like a truck or piece of equipment.
The majority of lenders, including the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan, then the asset could be offered for sale by the lender. In essence, it is means of securing new financing by using the value of what you already own.
Should I require security to get a business loan?
Up to $150K in loans the requirement for asset security is not required prior to the loan’s access but we do need the personal guarantee. In the event that you fulfill the terms of your loan (as stated in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150K, generally there is an individual ensure and security that is in the form charges on assets.