FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Calista Small Business Loans
Let me know about the Calista Small Business Loans
Calista unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from the traditional business 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 the funds could be on your account within 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. The company loan is a pre-paid loan and you’ll be aware of the total amount payable including any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company purpose including the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, for general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Calista Business Loans
What is the Larger Calista Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been in operation for at least 3 years, and have an annual income of $700,000. Your business must belong to 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 demonstrate at the least 12 months of operating.
What can the funding be used for?
A Larger Business Loan is a great option for almost all business use, including business renovations, purchase of inventory or new equipment as well as for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. This can be done as a result of an charge against assets and can be registered through the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is general in nature, rather than specifying the security for a particular asset. The person signing the guarantee is personally responsible if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR gives preference over private property assigned according to the date the security interest that is registered.
An affidavit is an official form of document to provide the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger company loans that exceeds $250,000 we may be able to provide 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 that includes answering a couple of financial well-being questions. This is not an offer or guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer that you might receive could have different terms.
Application process
Are I eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a couple minutes, and an experienced company credit specialist will call you to help you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we can often offer an answer within one hour if you apply within standard company time and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements we can offer an answer within 1 business day.
For the Larger Business Loan ($100K and up) we may be able to offer you with pre-approval conditional to your application within 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some agreements have been approved within less than 24 hours.
The most efficient method for you to apply is ensure you apply during standard company hours. You can also let us use the modern bank verification link to confirm your bank details online. If you choose to send us duplicates of your banking statements , it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour – provided you apply during normal business hours and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements, we are able to offer a decision in as little as an business day.
For the Larger Business Loans ($100K to $500K) We may be able to offer the conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some agreements have been approved in just 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. Also, allow us to use the sophisticated bank verification to confirm your bank details online. If you choose to send us the copies of bank statements it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we look at a variety of elements that determine what is the well-being for your business and the amount of repayments your business can afford. The total amount of your loan will be contingent on the particular circumstances the company.
If you apply for a set amount, we will consider a number of factors to determine how much we can lend you such as well-being of your business and the extent of repayments that your company is able to afford. The amount you receive from your loan will depend on the particulars that are unique to your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to request one of our company credit, we will assess the risk assessment the business and offer you with a customised proposal that includes loan amount, term and the interest rates. A business loan is an upfront priced loan and you’ll know the exact amount you will have to pay, including interest rates, fees or charges.
What determines the amount I pay?
The interest rates on company loans rates vary due to factors including the amount of money borrowed, the business assets the funds are used to purchase in addition to the industry that the company is in, how long the company is in operation and in the event that the business has enough cash flow to fund the loan, and overall well-being and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll know exactly how much you be required to pay, and when, right from the day you sign up. There’s no compounding and no extra fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You can make an application for loans with no cost upfront or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can decide to repay all of your loan at any point in time.
If you are deciding to do this please speak to our friendly business credit professionals. The experts will provide you with details for repayment along with an early payout estimate. This is calculated as the sum of the principal remaining and accrued interest to the time of early payment and 1.5% of the remaining principal and any fees that remain unpaid.
How do repayments work?
To ensure you do not miss payments and to work your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about the ways we gather, use, exchange and ensure the security of your information is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We use an advanced bank verification system to instantly verify the bank account details online to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from assets they own to secure a loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a business asset such as a vehicle as well as a piece of machine.
The vast majority of lenders, even the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, your assets could be sold by the lender. In essence, it’s a way of securing new financing taking advantage of the value of what you already have.
Do I need security to secure a business loan?
For loans up to $150K the requirement for asset security is not required before you are able to access the money However, we require a personal guarantee. need an individual guarantee. As long as you follow the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans that exceed $150K, generally there is personal guarantee and security that is in the form a charge over assets.