FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kudla Small Business Loans
Tell me what you think of the Kudla Small Business Loans
Kudla unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from the traditional company loan?
Apply to this Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and have the funds on your account within 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. Our business loan is a pre-paid loan therefore you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is divided into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company use, including managing cash flows, business remodels and marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
About the Larger Kudla Business Loans
What is the Larger Kudla Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be in operation for at least 3 years with an annual turnover of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be used for?
A Business Loan of a larger size can be used to fund almost all business purpose including business remodeling, buying inventory or new equipment or as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. It’s as a result of an charge on assets, and could include registration with the PPSR or making as a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is general in nature, rather than stating the security for a particular asset. The person who signs the guarantee is personally accountable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR grants preference over private property assigned according to the date the registration of a security interest.
Caveats are legal document filed to provide the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger company loans of more than $250K we may be able to provide a preliminary pre-approval to help ease the process. We may be able to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial health checks. This is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer you may receive may be on different conditions.
Application process
Can I be eligible for funding?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in just a few minutes, and an experienced company lending specialist will be in touch to help you.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit approval, 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 months bank statement, an IRD statement Last 2 years’ finalised financial statements, and interim current financial year financials, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you apply within standard company timings and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements , we’ll be able to provide the decision within the span of one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be capable of provide the conditional pre-approval within about 6 hours. After 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 circumstances of each application. Some deals have been approved in just 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours and allow us to use the advance bank verification to verify your bank information online. If you opt to send us the copies of bank statements it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour if you make your application at normal business times and allow us to use the bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we are able to offer a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be in a position to offer you with a conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some offers have been approved within the space of 24 hours.
The most effective method is to ensure you apply during standard business hours. You can also allow us to use the sophisticated bank verification link to instantly verify your bank information online. If you decide to upload duplicates of your banking statement, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a specific amount we look at a variety of factors that determine how much we can lend you health that is your company as well as the amount of payments your company can afford. The amount you receive from your loan will depend on the specifics for your company.
When you make an application for a specific amount we take into consideration a variety of elements to assess the well-being of your company and the level of payments your company can support. The total amount of your loan will be contingent on the particular circumstances the company.
Fees & repayments
What is the cost for an company loan?
When you request one of our company loans, we will assess the risk assessment of your business and provide an individualised offer that includes the amount of the loan, the duration and the interest rates. The company loan is an upfront priced loan therefore you will know in advance the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I’m charged?
The interest rates on business loans rates depend on several factors such as the amount that is borrowed, the business assets the funds will be used for as well as the field the business operates in, how long the company has been running and how long the business has enough cash flow to fund the loan, as well as the general health or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs with our company loans. You’ll know exactly how much you need to pay and when, right from the first day. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an application fee. You can get a cash loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of the loan in full at any time.
If you do decide to do this please contact our helpful business lending professionals. They’ll offer you with repayment details as well as an early payout amount. This will be calculated as the sum of the remaining principal amount and any accrued interest at the time of the early payout and 1.5% of the principal balance as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow general, we provide repayments either daily or weekly. They are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about how we collect, use, exchange and ensure the security of your information is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We utilise a sophisticated bank verification system to immediately confirm your bank account information online. This allows us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner makes use of an asset that they own to obtain the funding. The asset can be a personal asset like the family home, or it could be a business asset like a truck or piece or equipment.
The majority of lending institutions, not just the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, the asset could be offered for sale by the lender. In essence it is means of securing new financing by using the value of what you already own.
Are I require security to secure a business loan?
For loans up to $150K it is not necessary to secure assets prior to the loan’s access but we require a personal guarantee. require an individual guarantee. In the event that you fulfill the terms of your loan (as stated in your loan contract document), asset security will never be required. For loans of over $150,000 generally there is the option of a personal ensure and security that is in the form charges on assets.