FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Keralup Small Business Loans
Tell me how you can avail the Keralup Small Business Loans
Keralup unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from an traditional company loan?
The application to the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and funds may be in your account in 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. This company loan is an upfront priced loan therefore you’ll know ahead of time the total amount to be paid, including the interest, fees and charges. This is then divided into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company use, including managing cash flows, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Keralup Business Loans
What is the Larger Keralup Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to be trading for at least 3 years, and have an annual income of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can the funds be used for?
A large company loan is a great option for almost any company reason, such as business improvements, purchasing new equipment or inventory for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It is usually as a result of an charge on assets, and may include registering this in the PPSR or making as a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is general in nature, rather than specifying security over an asset. The person who is signing the guarantee is personally liable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR gives priority over personal property to be assigned according to the date a security interest that is registered.
The caveat can be described as a formal document lodged to provide notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan that exceeds $250K, we may offer an initial pre-approval that will help make the process. It is possible to do this without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial well-being questions. This is not an offer of credit or guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you are offered could be on different terms.
The application process
Can I be eligible for funding?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a couple minutes, and an experienced company credit specialist will call you to help you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically provide an answer in just one hour, provided you make your application at quality business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements we can provide a decision within just the span of one company day.
For the Larger Business Loan ($100K or more) we may be able to provide the conditional pre-approval within six hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Some agreements have been approved within just 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours and permit us to use the advance bank verification to instantly confirm your bank details online. If you opt to send us documents from your account statements , it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we can often provide an answer within one hour if you apply in normal business times and let us make use of the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statements we can offer the decision in just one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain offers have been approved in just 24 hours.
The quickest method can be make sure you apply during standard business hours and allow us to use the advance bank verification link to verify your bank account information online. If you upload duplicates of your banking statements, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a specific amount we take into consideration a range of aspects to determine how much we can lend you well-being for your company and the extent of repayments your business is able to afford. The total amount of the loan will be determined by the specifics for your company.
When you apply for a specific amount we look at a range of elements to determine your health for your company as well as the amount of repayments that your business can support. The amount you receive from your loan will be determined by the particular circumstances of your company.
Fees & repayments
What is the cost for a company loan?
If you decide to apply for one of our company loans, we will assess the risk profile that you have for your company and offer you with a customised offer, including the amount of the loan, the duration and interest rates. A company loan is a loan that is priced upfront which means you be aware of the total amount due, which includes any charges or interest.
What is the basis for the rate I am charged?
Interest rates for business loans rates depend on a variety of variables like the amount to be of money borrowed, the company assets the money are used to purchase, the industry the business is operating in, how long the business has been in operation, in the event that the business has enough cash flow to support the loan, and the overall health or creditworthiness of the business.
What are the costs?
There aren’t any hidden charges with our business loans. You’ll know exactly how much it is that you need to pay, and when, starting from day one. There’s not any compounding interest and the loan comes with no additional fees (as as long as you pay your payments punctually).
We do not charge an application fee. You can request a credit loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan earlier?
You can choose to repay the entire amount of your loan early at any time.
If you do decide to take this route, please talk to one of our helpful business loans specialists. They’ll provide you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the principal balance and the accrued interest up to the time of early payment, plus 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather, use, exchange and 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 utilise industry-recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We employ an exceptionally sophisticated bank verification system link to immediately verify the bank account details online. This allows us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a company owner makes use of the assets they have to get the funding. The asset can be either an individual asset, such as the family home or a business property like a truck as well as a piece of machine.
The majority of the lenders not just the largest banks, are inclined to secure loans against an asset. If you’re struggling to pay back the loan, then the asset could be offered for sale by the lender. In essence it is an opportunity to secure new financing using the value of what you already have.
Do I need security to get a company loan?
For loans that exceed $150K, there is no requirement for asset security prior to the loan’s access However, we require a personal guarantee. need an individual guarantee. If you adhere to the loan terms (as detailed in the loan contract) Asset security is not required. For loans of over $150,000 generally there is a personal guarantee and security in the form of a charge over assets.