FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Pooraka Small Business Loans
Let me know more about Pooraka Small Business Loans
Pooraka unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional company loan?
It is possible to apply to get your Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. We offer a business loan is an upfront priced loan and you’ll know ahead of time the total amount to be paid, including any interest, fees or charges. This is then 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 business reason, such as control of cash flow company remodels and marketing to purchase inventory, new equipment, for general working capital, and much more. The loan is not available for personal reasons.
About the Larger Pooraka Business Loans
What is the Larger Pooraka Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be operating for a minimum of 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A larger company loan can be used for almost all business purpose including company renovations, purchase of inventory or new equipment or as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It’s by way of charge against assets, which could also include registration on the PPSR or making as a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally in nature rather than stating the security of a specific asset. The person who signs the guarantee is personally liable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned in accordance with the date on which a registration of a security interest.
The caveat can be described as a formal document lodged to offer the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more it’s possible to offer a preliminary pre-approval to help smooth out the process. It is possible to get this done without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial well-being checks. It’s in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer you are offered could be subject to different conditions.
Application process
Do I have the right to receive funds?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in just a few minutes, and an experienced business loan specialist will contact you to assist you.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details including credit consent as well as 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we typically provide an answer in just one hour – as long as you submit your request at standard business hours and let us make use of the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements , we are able to offer a decision within just one business day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of offer you with conditional pre-approval within six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The quickest way to apply can be make sure you apply during normal company hours and allow us to use the advance bank verification link to instantly verify your bank information online. If you decide to upload documents from your account statements , it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour if you submit your request in standard business timings and permit us to use the bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements we can provide an answer in as little as an business day.
For Larger Business Loans ($100K up to $500,000) We may be likely to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be faster depending upon the circumstances for each application. Some agreements have been approved in the space of 24 hours.
The quickest method is to ensure you apply during normal business hours, and allow us to use our advanced bank verification system to confirm your bank details online. If you choose to upload documents from your account statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount we will consider a number of factors that determine the health of the company and the extent of payments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances for your company.
When you submit an application for a set amount, we will consider a number of aspects to assess the well-being for your company and the level of the repayments your company can support. The amount you receive from your loan will be contingent on the particulars the business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to apply for one of our company loan, we will assess the risk profile of your business and offer you with a customised offer including the amount of the loan, the duration and interest rates. A business loan is an upfront-priced loan therefore you will know the exact amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on a variety of factors such as the amount that is borrowed, the company assets the funds will be used for and the sector the business operates in, how long the company has been running as well as what percentage of the business has enough cash flow to pay for the loan, and the general well-being or creditworthiness of the company.
What are the costs?
There aren’t any hidden costs for our company loans. You’ll know precisely how much you’ll need to pay and when, from day one. There’s not any compounding interest and there are no additional charges (as long as you make your payments punctually).
We do not charge an application fee. You can apply for a loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay off the loan early?
You can choose to repay the entire amount of your loan in full at any time.
If you choose to do this please speak to our friendly business lending specialists. We will provide you with repayment details along with an early payout estimate. It will be calculated using the sum of the principal balance and the accrued interest up to the time of the early payout plus 1.5% of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing repayments and to fit in with your cash flow general, we provide payments that are either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and being transparent about the ways we gather the information we collect, use, share and ensure the security of your information is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We use an advanced bank verification system to instantly verify the bank account details online to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an business owner makes use of assets they own to obtain a loan. The asset can be either a personal asset like the family home or a company asset such as a vehicle as well as a piece of machine.
The majority of lenders, even the major banks, prefer to make loans secured by an asset. If you have trouble paying back the loan then your assets could be sold by the lender. In essence, it’s an opportunity to secure new financing taking advantage of the value of what you already have.
Should I need security to get an company loan?
Up to $150,000 in loans it is not necessary to secure assets before you can access the money, however we require a personal guarantee. require an individual guarantee. If you adhere to your loan obligations (as detailed in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans over $150,000 generally, there is a personal ensure and security in the form of an asset charge.