FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kurwongbah Small Business Loans
Tell me more about Kurwongbah Small Business Loans
Kurwongbah unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from the traditional business loan?
Apply to get this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and the funds could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. This business loan is an upfront priced loan which means you know ahead of time the total amount payable including any interest, fees or charges. Then, it is divided into weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company use, including cash flow management, business remodeling, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
About larger Kurwongbah Business Loans
What is the Larger Kurwongbah Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to have been in operation for at least 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funds be used for?
A larger business loan can be used for almost all company purpose including business renovations, purchase of new equipment or inventory as well as for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It is usually by taking a charge on assets, and could include the registration of this on the PPSR or filing as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature, rather than stating security over an asset. The person who is signing the guarantee is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR allows priority over personal property to be assigned depending on the date that a registration of a security interest.
An affidavit is an official document lodged to offer an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000, we may offer a preliminary pre-approval to help make the process. We might be able to get this done without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being checks. This is neither an offer nor a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you may receive may be based on different terms.
The application process
Do I have the right to receive funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Just complete the online application within a couple minutes, and a dedicated business expert in lending will contact you to guide you.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent twelve months of bank statements, IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer within an hour if you submit your request during standard business hours and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements , we are able to provide a decision in just an business day.
For Larger Business Loans ($100K to $500K) we may be likely to provide you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the circumstances of each application. Some offers have been approved within the space of 24 hours.
The quickest way to apply can be make sure you apply during normal company hours and let us use the advance bank verification to confirm your bank details online. If you choose to send us the copies of bank statements , it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour, provided you make your application during standard business time and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements we can offer a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we may be likely to provide you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some agreements have been approved within 24 hours.
The quickest method is to ensure you apply during normal business hours, and permit us to use the advance bank verification link to instantly verify your bank account information online. If you opt to send us copies of your bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of variables that determine what is the health for your company and the extent of payments your business can afford. The total amount of the loan will be determined by the particular circumstances the company.
When you submit an application for a certain amount, we will consider a number of factors to assess how much we can lend you such as health of the company as well as the amount of repayments that your company is able to afford. The total amount of your loan will depend on the particulars the business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you make an application for one of our business credit, we will assess the risk profile the company and offer you with a tailored offer, including the amount of the loan, the duration and interest rates. A business loan is an upfront-priced loan and you’ll know in advance the total amount you will have to pay, including charges, interest rates or fees.
What determines the amount I pay?
Interest rates for company loans rates depend on a variety of factors including the amount borrowed, what business assets the funds are used to purchase, the industry the company operates in, how long the business is in operation as well as what percentage of the business has sufficient cash flow to fund the loan, and also the overall well-being and creditworthiness of the company.
What are the charges?
There are no hidden costs for our company loans, and you’ll be aware of the amount you need to pay, and when, right from the very first day. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You can request a credit loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with the setting up and management of 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 the loan.
Can I pay out the loan earlier?
You can decide to repay the total amount of your loan early at any time.
If you do decide to do this please contact our helpful business lending professionals. We will offer you with the details of your repayment and an early payout figure. The figure will be calculated as the total of the principal amount remaining and any accrued interest at the time of early payout and 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
To ensure that you don’t miss due dates and also to be in line your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and ensure the security of your information is vital and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our clients and security. We utilise a sophisticated banking verification system to instantly verify your bank account information online. This allows us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner utilises an asset they own to obtain the loan. The asset can be either a personal asset like the family home or it could be a business property like a truck as well as a piece of machine.
The majority of banks, even the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan then the asset might be taken over by the lender. In essence it’s an opportunity to secure new financing by using the value of what you already have.
Are I need security to get a company loan?
For loans up to $150K no asset security is required upfront to access the money but we require a personal guarantee. need the personal guarantee. So long as you comply with the terms of your loan (as stipulated in your loan contract) the security of assets will never be needed. For loans over $150K typically, you will need a personal guarantee and security is provided in the form of a charge over assets.