FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Kaiwharawhara Small Business Loans
Tell me how you can avail the Kaiwharawhara Small Business Loans
Kaiwharawhara unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and have the funds available in just 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. Our business loan is a pre-paid loan so you will know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into either a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company need, such as the management of cash flow, business improvements, advertising to purchase inventory, new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
About the Larger Kaiwharawhara Business Loans
What is the Larger Kaiwharawhara Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funds for?
A larger company loan can be used for almost any business purpose including company renovations, to purchase new equipment or inventory for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This is in the form of a charge over assets, and could include the registration of this on the PPSR or registering a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally in nature rather than stating security over a particular asset. The person signing the ensure is personally liable in the event that the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR allows preference over private property granted depending on the date that a registration of a security interest.
The caveat can be described as a formal document filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of $250K or more we may be able to provide an initial pre-approval to make the process. It is possible to do this without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial well-being questions. It is not an offer of credit or guarantee of finance. A conditional approval is subject an assessment of your creditworthiness and any offer you may receive may be based on different conditions.
Application process
Do I have the right to receive funds?
You are eligible to apply for a 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)
- you must demonstrate at minimum 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a couple minutes, and a dedicated business credit specialist will call you to assist you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll also require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Information on the application including credit consent twelve months of bank statements, IRD statement Last 2 years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) We can usually provide a response in one hour, provided you make your application during standard business timings and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statement, we’ll offer an answer in as little as one business day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of offer the conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some deals have been approved within the space of 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours and let us use the modern bank verification link to verify your bank information online. If you opt to upload documents from your account statement, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually provide a response in one hour – provided you submit your request at normal business timings and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements, we will be able to offer a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be likely to offer you with conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Some offers have been approved in less than 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. Also, allow us to use our advance bank verification to verify your bank information online. If you opt to send us copies of your bank statement, it will take a little longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of factors in order to assess what is the well-being that is your company and the level of repayments that your business can afford. The total amount of the loan will be determined by the specific circumstances that are unique to your company.
When you apply for a certain amount, we will consider a number of elements to determine how much we can lend you such as well-being that is your company as well as the amount of repayments your business is able to afford. The amount you receive from your loan will be determined by the particulars that are unique to your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you make an application for our company loan, we’ll assess the risk profile the company and provide you with a tailored offer, including the amount of loan, the term and the interest rates. This business loan is an upfront priced loan so you will know the exact amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I will be charged?
Interest rates for business loans rates depend on a variety of factors such as the amount that is borrowed, the business assets the money are used to purchase and the sector the business is operating in, how long the company has been running as well as whether the company has sufficient cash flow to pay for the loan, as well as the general health and creditworthiness of the business.
What are the fees?
There are no hidden costs with our business loans. You’ll know precisely what you need to pay, and when, starting from day one. There’s no compounding interest and there are no additional charges (as as you make your payments punctually).
We do not charge an application fee. You are able to make an application for loans no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can choose to repay all of your loan in full at any time.
If you are deciding to do this please call our helpful business loans specialists. We will provide you with details on repayment as well as an early payout amount. The figure will be calculated as the sum of the principal balance and accrued interest to the time of early payment and 1.5 percent of the remaining principal plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work your cash flow schedule, we provide repayments either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about how we collect data, process, exchange and safeguard your data, is crucial and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We make use of an advanced bank verification system link to immediately confirm your bank account information online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner borrows from an asset that they own to get the funding. The asset may be a personal asset like the family home, or a company asset such as a truck as well as a piece of machine.
The vast majority of lenders, including the big banks, tend to guarantee loans against assets. If you’re struggling to pay back the loan, your asset may be sold by the lender. In essence, it is the process of securing new financing by taking advantage of the value of what you already have.
Do I need security to get an business loan?
Up to $150K in loans there is no requirement for asset security upfront to access the money However, we do require an individual guarantee. If you adhere to your loan commitments (as stated in the loan contract) the security of assets will never be required. If you take out loans in excess of $150K typically, you will need a personal guarantee and security in the form of the charge of assets.