FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kurralta Park Small Business Loans
Tell me about the Kurralta Park Small Business Loans
Kurralta Park unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from an traditional company loan?
It is possible to apply to your Small Business Loan in under 10 minutes by phone. You will receive an instant response and have the funds in your account in 24 hours. Traditional company loans are based on an interest rate per annum along with other charges and fees. We offer a business loan is a loan that is priced upfront so you will know in advance the total amount due, which includes the interest, fees and charges. Then, it is broken down into either weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company reason, such as managing cash flows, business remodels and marketing to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
About Larger Kurralta Park Business Loans
What is the Larger Kurralta Park Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to have been trading for at least 3 years and have an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funds be used for?
A large business loan can be used for nearly any business need, including business remodeling, buying inventory or new equipment as well as for general working capital and so 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 by taking a charge against assets, and may include registering this in the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to repay a loan which is generally in nature rather than stipulating security over a particular asset. The person who is signing the guarantee is personally accountable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR allows the priority of personal property granted depending on the date that a security interest that is registered.
The caveat can be described as a formal document lodged to offer the legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger business loans that exceeds $250K, we may offer an initial pre-approval to smooth out the process. We may be able to get this done without credit checks and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial health checks. This is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer that you may receive may be based 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 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a few minutes and an experienced company expert in lending will contact you to guide you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent and 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K and up) We can usually offer an answer within one hour – as long as you make your application at quality business times and you allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statement, we’ll offer an answer within just one business day.
For the Larger Business Loan ($100K or more) we might be able to offer you with a conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the circumstances of each application. Certain agreements have been approved in just 24 hours.
The fastest way can be make sure you apply during standard company hours, and permit us to use the advance bank verification link to instantly confirm your bank details online. If you decide to send us duplicates of your banking statement, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we typically provide a response in one hour – provided you submit your request at normal business time and you allow us to use the bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements we can provide a decision in as little as 1 business day.
For Larger Business Loans ($100K up to $500,000) we may be capable of provide the conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the circumstances of each application. Certain agreements have been approved in 24 hours.
The quickest method would be to ensure you apply during normal business hours, and allow us to use our advance bank verification link to verify your bank information online. If you upload copies of your bank statements, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a certain amount we will consider a number of aspects to determine what is the well-being that is your company as well as the amount of repayments that your company can support. The total amount of your loan will depend on the specifics that are unique to your business.
If you apply for a particular amount, we look at a range of elements to determine your health for your business and the level of the repayments your business can support. The total amount of your loan will be contingent on the specific circumstances that are unique to your company.
Fees & repayments
How much do you charge for a company loan?
When you request the company loan, we will assess the risk profile of your business and offer you with a customised proposal that includes the amount of the loan, the duration and interest rates. It is a company loan is an upfront cost loan which means you be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I will be charged?
Business loan interest rates differ based on various factors like the amount of money borrowed, what business assets the funds will be used for as well as the field the company operates in, how long the business has been operating as well as what percentage of the company has enough cash flow to cover the loan, and also the overall health or financial standing of the company.
What are the charges?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you need to pay and when, right from the first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an application fee. You are able to make an application for loans with without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of the loan at any point in time.
If you are deciding to take this route, please talk to one of our helpful business loans experts. We will offer you with details for repayment and an early payout figure. It will be calculated using the total of the principal balance and accrued interest to the time of early payment in addition to 1.5 percent of the principal balance plus any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in with your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear how we collect, use, exchange and ensure the security of your information is of paramount importance and is an essential part 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 sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We use an advanced bank verification system link to instantly verify your bank account details online so we can offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the company owner makes use of an asset that they own to secure a loan. The asset can be either an individual asset, such as the family home or it could be a company asset such as a vehicle or other piece of machinery.
The vast majority of the lenders including the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan then the asset could be transferred to the lender. In essence, it’s an opportunity to secure additional financing using the value of what you already own.
Do I require security to secure a company loan?
For loans of up to $150,000, no asset security is required before you are able to access the money however, we require a personal guarantee. require the personal guarantee. As long as you follow your loan obligations (as stated in your loan contract) and you are able to meet your obligations, asset security is not required. For loans of over $150K generally there is personal ensure and security in the form an asset charge.