FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Koondoola Small Business Loans
Tell me more about Koondoola Small Business Loans
Koondoola unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
You can apply for your Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and funds may be on your account within 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. This business loan is a loan that is priced upfront and you’ll know in advance the total amount to be paid, including any interest, fees or charges. Then, it is divided into weekly or daily repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company purpose including managing cash flows, business improvements, advertising, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Koondoola Business Loans
What is the Larger Koondoola Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to be operating for a minimum of 3 years with an annual turnover of at least $700K. It is necessary to be 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 minimum 12 months of continuous trading.
How can the funds be used for?
A Business Loan of a larger size can be used for nearly all business purpose including business improvements, purchasing inventory or new equipment as well as for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is by way of charge on assets, which could also include the registration of this on the PPSR or registering as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature rather than stating the security of a specific asset. The person signing the guarantee is personally liable in the event that the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR grants the priority of personal property assigned in accordance with the date on which a security interest was registered.
An affidavit is an official document that is filed to provide notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger company loans of more than $250K we may be able to provide an initial pre-approval in order to ease the process. We may be able to do this without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial health checks. It is not an offer of credit or guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you might receive could be on different terms.
Application process
Do I qualify for funds?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (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 process for applying is fast and simple. Complete the online form within a couple minutes, and an experienced business credit specialist will be in touch to assist you.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s Licence) and a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Application details including credit consent and 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically provide an answer in just one hour – as long as you submit your request within quality company timings and let us utilise the advanced bank verification system to instantly verify your bank information online. If you want 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 might be able to provide you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Certain agreements have been approved within just 24 hours.
The quickest way to apply can be make sure you apply during standard business hours. Also, permit us to use the modern bank verification link to verify your bank account information online. If you decide to send us duplicates of your banking statements , it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we can often offer an answer in just one hour – as long as you make your application at normal business timings and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statements we can provide a decision in as little as one business day.
For Larger Business Loans ($100K or more) we might be likely to provide you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Certain transactions have received approval within 24 hours.
The most effective method can be ensure you apply during standard business hours and allow us to use our sophisticated bank verification to verify your bank account information online. If you upload copies of your bank statements it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount, we look at a variety of aspects in order to assess what is the well-being of the company and the level of repayments that your company can support. The total amount of the loan will be determined by the specific circumstances of your company.
When you submit an application for a certain amount, we look at a range of factors to determine the health of your business and the amount of the repayments your company can afford. The amount you receive from your loan will depend on the particular circumstances for your business.
Fees & repayments
How do you charge for a company loan?
When you request one of our company financing, we’ll assess the risk assessment the company and provide you with a customised offer, including the loan amount, the terms and the interest rates. It is a business loan is a loan that is priced upfront so you will be aware of the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I am charged?
Interest rates for company loans rates differ based on various factors including the amount borrowed, the business assets the money will be used for as well as the field the company operates in, the long the business has been running, 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 fees?
There are no hidden fees with our business loans. You’ll know precisely how much you’ll need to pay, and when, right from the very first day. There’s not any compounding interest and no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to request a credit loan with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I repay the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you are deciding to do this please contact our helpful business loans professionals. We will provide you with the details of your repayment and an early payout figure. This will be calculated as the total of the principal balance and accrued interest to the time of early payout, plus 1.5% of the principal remaining and any outstanding fees.
What are the repayment methods?
To make sure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being upfront about the ways we gather data, process, exchange and protect your information, is vital and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We employ an exceptionally sophisticated bank verification system that allows you to instantly verify your bank account details online so we can provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a company owner borrows from the assets they have to secure the funds for a loan. The asset could be an asset belonging to the personal, like the family home or it could be a business asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, not just the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, the asset could be offered for sale by the lender. In essence it is a way of securing new financing taking advantage of the value of what you already own.
Should I need security to secure an company loan?
Up to $150K in loans the requirement for asset security is not required in advance to gain access to the funds, however we require a personal guarantee. require an individual guarantee. As long as you follow the loan terms (as specified in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150K, generally, you can get personal ensure and security in the form of a charge over assets.