FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Karaka Bays Small Business Loans
Tell me how you are able to avail the Karaka Bays Small Business Loans
Karaka Bays unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from an ordinary business loan?
You can apply to your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and funds may be available in just 24 hours. Traditional business loans refer to an annual interest rate along with other charges and fees. This company loan is an upfront priced loan therefore you’ll know ahead of time the total amount to be paid, including any fees, charges or charges. Then, it is broken down into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business purpose including managing cash flows, business remodeling, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
About the Larger Karaka Bays Business Loans
What is the Larger Karaka Bays Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly, depending on your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that 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 business needs to be operating for at least three years and generate an annual revenue of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funds be used for?
A large company loan is a great option for almost every business use, including company remodeling, buying equipment or inventory, as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. It’s by way of charge over assets and can be registered with the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature, rather than specifying security over a particular asset. The person who signs the guarantee is personally liable in the event that the business the borrower fails 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 that are registered for personal property (including items or assets). The PPSR gives priority over personal property to be assigned according to the date a security interest was registered.
An affidavit is an official document filed to provide the legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 we may be able to provide an initial pre-approval in order to simplify the process. It is possible to do this 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 well-being checks. It’s in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer that you might receive could be based on different terms.
The application process
Do I qualify for funds?
You can apply for an 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)
- can demonstrate at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Just complete the online application in few minutes and an experienced business expert in lending will be in touch to guide you.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Information on the application including credit consent, 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically provide an answer in just one hour, provided you make your application during quality company time and you allow us to utilise the bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statements we can offer an answer in as little as 1 business day.
For the Larger Business Loan ($100K and up) we may be in a position to provide the conditional pre-approval within about six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The quickest way to apply can be make sure you apply during standard business hours. Also, permit us to use the advanced bank verification system to confirm your bank details online. If you choose to upload documents from your account accounts, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we usually offer an answer within one hour – provided you make your application during normal business timings and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements we can offer a decision within one business day.
For the Larger Business Loans ($100K and up) we could be capable of provide you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The fastest method can be ensure you apply during standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank account information online. If you decide to upload documents from your account accounts, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we take into consideration a range of aspects for determining the well-being of the company and the extent of repayments that your company can afford. The total amount of your loan will be contingent on the particular circumstances that are unique to your company.
When you apply for a specific amount we look at a range of aspects to assess the well-being that is your business and the level of the repayments your business can support. The total amount of your loan will depend on the specifics that are unique to your business.
Fees & repayments
How much do you charge for a company loan?
If you decide to make an application for business loans with us business financing, we’ll assess the risk assessment the business and provide you with a customised offer, including the loan amount, the terms and the interest rates. It is a business loan is an upfront cost loan therefore you will know the exact amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I am charged?
The interest rates on company loans rates vary due to factors including the amount borrowed, the business assets the money are used to purchase as well as the field the company operates in, the long the business has been in operation for, what percentage of the company has enough cash flow to pay for the loan, as well as the overall health and creditworthiness of the company.
What are the costs?
There aren’t any hidden costs with our company loans. You’ll know exactly how much it is that you be required to pay, and when, starting from the very first day. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We do not charge an Application Fee. You are able to get a cash loan no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You can decide to repay the entire amount of the advance loan at any time.
If you decide to pursue this option, please call our helpful business lending experts. They’ll provide you with repayment details and an early payment figure. It will be calculated using the total of the principal amount remaining plus any accrued interest as of the time of early payment plus 1.5% of the remaining principal and any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss repayments and to fit in with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being upfront about how we collect, use, exchange and ensure the security of your information is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We employ a highly sophisticated banking verification system to immediately confirm your bank account information online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a company owner makes use of an asset that they own to make a loan. The asset can be either an individual property, such as the family home, or it could be a company asset such as a truck or piece of equipment.
The vast majority of banks, even the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan, then your assets could be offered for sale by the lender. In essence, it is an opportunity to secure new financing making use of the value of what you already own.
Do I require security to get a business loan?
For loans up to $150,000 no asset security is required prior to the loan’s access, however we do require a personal guarantee. As long as you follow the terms of your loan (as stated in the loan contract) the security of assets is not required. For loans of over $150,000 generally there is a personal guarantee and security that is in the form the charge of assets.