FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Kallaroo Small Business Loans
Let me know about the Kallaroo Small Business Loans
Kallaroo unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from an traditional company loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get a same day response and have the funds in your account in 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. This company loan is a cash-based loan therefore you’ll be aware in advance of the total amount due, which includes the interest, fees and charges. This is then broken down into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business purpose including managing cash flows, company improvements, advertising for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available for personal use.
About the Larger Kallaroo Business Loans
What is the Larger Kallaroo Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount the company needs to have been trading for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used for almost all business reason, such as company renovations, to purchase equipment or inventory as well as for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. It is usually by way of charge against assets, and could include registration with the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature, rather than specifying the security for a particular asset. The person signing the guarantee is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR permits preference over private property granted depending on the date that a security interest that is registered.
Caveats are legal form of document to offer notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan that exceeds $250,000, we may offer an initial pre-approval that will help smooth out the process. It is possible to get this done without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial well-being questions. It is neither an offer nor a guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer you are offered could be based on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in just a few minutes, and an experienced business expert in lending will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s License) as well as a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we can often provide an answer within one hour if you apply within quality company time and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements , we’ll be able to offer a decision in just an business day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to provide you with conditional pre-approval in around six hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some deals have been approved in just 24 hours.
The most effective method would be to make sure you apply during normal business hours. You can also permit us to use the advanced bank verification system link to instantly confirm your bank details online. If you send us the copies of bank statements , it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we typically offer an answer in just one hour, provided you apply within normal business timings and let us utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements, we are able to offer a decision in just the span of one business day.
For Larger Business Loans ($100K or more) we may be likely to offer you with conditional pre-approval in around six hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved within 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours, and allow us to use the sophisticated bank verification link to verify your bank information online. If you opt to upload copies of your bank statements, it will take a little longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a specific amount we consider a variety of elements in order to assess the health for your business and the extent of payments your company is able to afford. The amount you receive from your loan will be contingent on the specifics for your business.
When you apply for a certain amount, we take into consideration a variety of variables to determine how much we can lend you such as well-being of your company and the extent of repayments your business can afford. The total amount of your loan will depend on the particulars that are unique to your company.
Fees & repayments
How do you charge for the cost of a company loan?
When you make an application for business loans with us company financing, we will assess the risk profile of your business and provide an individualised offer that includes the loan amount, the terms and the interest rates. A business loan is an upfront priced loan therefore you will be aware in advance of the total amount payable including any interest rates, fees or charges.
What is the basis for the rate I am charged?
The interest rates on business loans rates depend on a variety of factors including the amount of money borrowed, the company assets the funds are used to purchase, the industry the business operates in, the long the company is in operation as well as what percentage of the business has sufficient cash flow to cover the loan, and also the general well-being or financial standing of the business.
What are the costs?
There are no hidden fees with our business 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 there are no additional charges (as long as you make your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan with without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan earlier?
You can choose to repay all of your loan in full at any time.
If you are deciding to take this route, please contact our helpful business lending experts. They will offer you with details for repayment as well as an early payout amount. It will be calculated using the total of the remaining principal amount plus any accrued interest as of the date of early payout plus 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in with your cash flow general, we provide repayments either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing the ways we gather, use, exchange and secure your information, is of huge importance and is an essential 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 secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We use an advanced bank verification system to instantly verify your bank account information online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner utilises the assets they have to obtain the funding. The asset can be either an individual property, such as the family home or it could be a business asset such as a vehicle or other piece of machinery.
The majority of lenders, including the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan, then your assets could be transferred to the lender. In essence, it’s means of securing new funding using the worth of the asset you already own.
Do I need security for a business loan?
For loans that exceed $150K, the requirement for asset security is not required upfront to access the money however, we do require a personal guarantee. As long as you follow the terms of your loan (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans of over $150,000 generally, there is an individual guarantee and security that is in the form the charge of assets.