FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kallangur Small Business Loans
Let me know more about Kallangur Small Business Loans
Kallangur unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from a traditional company loan?
You can apply to the Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and have the funds available in just 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. Our company loan is a cash-based loan therefore you’ll know in advance the total amount to be paid, including any interest, fees or charges. Then, it is broken down into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company need, such as control of cash flow business remodeling, marketing for purchasing inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Kallangur Business Loans
What is the Larger Kallangur Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to be in operation for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan is a great option for almost every business purpose including company remodeling, buying inventory or new equipment, as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. It’s by taking a charge on assets, and could include registering this in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is general in nature, rather than defining security over an asset. The person who is signing the guarantee is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR grants the priority of personal property assigned according to the date a security interest that is registered.
An affidavit is an official document filed to provide notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan of $250,000 or more we can offer an initial pre-approval to make the process. We may be able to get this done without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes answering a couple of financial well-being checks. It is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer you might receive could be based on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in just a few minutes, and a dedicated company loan specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence), an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$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: Information on the application including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we can often provide a response in one hour if you make your application in standard company times and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statement, we’ll offer a decision in just an company day.
For the Larger Business Loan ($100K up to $500,000) we could be capable of provide the conditional pre-approval in around 6 hours. After you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved within less than 24 hours.
The quickest way to apply is to make sure you apply during normal business hours. Also, permit us to use the advanced bank verification system link to instantly check your bank’s information online. If you upload copies of your bank statements , it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we usually provide an answer within an hour if you make your application during normal business hours and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements we can offer the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to provide the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. You can also let us use the modern bank verification link to check your bank’s information online. If you opt to send us the copies of bank statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we will consider a number of elements to determine your health that is your company as well as the amount of payments your business can support. The amount you receive from your loan will depend on the specific circumstances of your company.
When you submit an application for a set amount, we consider a variety of factors to determine how much we can lend you such as well-being for your company and the extent of the repayments your business can afford. The total amount of your loan will depend on the particular circumstances the business.
Fees & repayments
How do you charge for an company loan?
If you decide to request business loans with us company loans, we’ll assess the risk assessment of your business and offer you with a customised proposal that includes the amount of the loan, the duration and the interest rates. The business loan is an upfront priced loan so you will be aware of the total amount payable including any charges or interest.
What determines the rate that I pay?
Interest rates for business loans rates differ based on various factors like the amount of money that is borrowed, what business assets the money will be used for as well as the field the business is operating in, how long the business has been in operation, in the event that the company has sufficient cash flow to fund the loan, and the general well-being or creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our business loans. You’ll know exactly how much you’ll be required to pay, and at what time, from day one. There’s no compounding and no additional fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You can apply for a loan with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us 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 decide to pursue this option, please contact our helpful business lending specialists. They’ll offer you with details on repayment and an early payment figure. The figure will be calculated as the total of the remaining principal amount and the accrued interest up to the time of early payout and 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing how we collect information, use it, and exchange it, as well as safeguard your data, is crucial and an integral aspect 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 as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our clients and security. We make use of an advanced banking verification system to immediately verify the bank account details online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the business owner makes use of an asset that they own to obtain the loan. The asset may be an individual property, such as the family home, or an company asset such as a vehicle or other piece of machinery.
The majority of lenders, including the largest banks, are inclined to make loans secured by an asset. If you’re struggling to pay back the loan, your assets could be transferred to the lender. In essence it is an opportunity to secure new financing by taking advantage of the value of what you already have.
Do I require security to get an company loan?
For loans that exceed $150,000, no asset security is required prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. As long as you follow the loan terms (as detailed in your loan contract) the security of assets is not needed. For loans that exceed $150K, generally, there is an individual guarantee and security in the form the charge of assets.