FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kangaroo Point Small Business Loans
Let me know more about Kangaroo Point Small Business Loans
Kangaroo Point unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from the traditional company loan?
It is possible to apply to the Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and have the funds in your account in 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. We offer a company loan is a cash-based loan which means you know in advance the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into weekly or daily installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every business need, such as managing cash flows, company improvements, advertising, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
About larger Kangaroo Point Business Loans
What is the Larger Kangaroo Point Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to be operating for at least three years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A larger company loan can be used to fund almost all company need, including business renovations, purchase of equipment or inventory, as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. This is by taking a charge over assets, and may be registered with the PPSR or making a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature rather than specifying the security of a specific asset. The person who is signing the ensure is personally liable in the event that the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR permits priority over personal property to be granted according to the date a security interest has been registered.
The caveat can be described as a formal document filed to provide the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250,000, we may offer an initial pre-approval to make the process. It is possible to apply for this without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial well-being checks. It is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you are offered could be subject to different terms.
The application process
Are I 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 business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and an experienced business credit specialist will contact you to help you.
To apply for 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.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details including credit consent twelve months of bank statements, IRD statement Last 2 years’ finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually provide a response in one hour – as long as you make your application within standard company times and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statement, we’ll offer an answer within just one company day.
For the Larger Business Loan ($100K and up) we could be likely to provide you with pre-approval conditional to your application within about six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Certain deals have been approved in the space of 24 hours.
The most effective method can be ensure you apply during standard business hours and allow us to use our advanced bank verification system to instantly verify your bank information online. If you send us the copies of bank statements it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we usually provide a response in one hour, provided you submit your request in normal business timings and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we will be able to provide an answer in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be likely to provide you with conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some transactions have received approval within just 24 hours.
The fastest method would be to make sure you apply during normal business hours, and permit us to use the advanced bank verification system to verify your bank account information online. If you decide to upload copies of your bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of factors for determining how much we can lend you well-being for your business and the extent of the repayments your business is able to afford. The amount you receive from your loan will be contingent on the specific circumstances the business.
When you make an application for a specific amount we will consider a number of variables to determine the well-being for your company and the amount 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.
Fees & repayments
How much do you charge for an business loan?
When you apply for the company financing, we will assess the risk profile of your company and provide you with a customised offer, including loan amount, term and the interest rates. It is a business loan is an upfront priced loan which means you be aware of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I pay?
Business loan interest rates depend on a variety of factors including the amount borrowed, what business assets the money are used to purchase in addition to the industry that the business operates in, how long the business has been operating as well as in the event that the business has enough cash flow to support the loan, and general health or financial standing of the company.
What are the costs?
There aren’t any hidden costs with our company loans, and you’ll be aware of the amount you’ll need to pay and when, right from the first day. There’s no compounding interest, and no additional fees (as as you make your payments in time).
We do not charge an Application Fee. You can apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan earlier?
You can repay the total amount of your loan early at any time.
If you do decide to do this please talk to one of our helpful business loans experts. They’ll provide you with the details of your repayment and an early payment figure. This is calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payment in addition to 1.5 percent of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing due dates and also to be in line with your cash flow general, we offer repayments that are either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about the ways we gather information, use it, and exchange it, as well as safeguard your data, is of paramount importance and an integral 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 techniques to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to security for our clients and security. We use an advanced banking verification system to instantly verify your bank account information online. This allows us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where the company owner uses assets they own to obtain the loan. The asset may be an individual property, such as the family home or a business property like a truck as well as a piece of machine.
The vast majority of banks, not just the major banks, prefer to secure loans against assets. If you’re struggling to pay back the loan then the asset could be transferred to the lender. In essence it is the process of securing new financing by making use of the value of what you already own.
Should I require security to get an company loan?
For loans of up to $150,000, it is not necessary to secure assets in advance to gain access to the funds however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract) Asset security will never be needed. For loans over $150,000 generally, you can get the option of a personal ensure and security is provided in the form of charges on assets.