FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Karaka Harbourside Small Business Loans
Tell me about the Karaka Harbourside Small Business Loans
Karaka Harbourside unsecured loans offers 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 business loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and the funds could be available in just 24 hours. Traditional company loans reference an annual rate of interest along with other charges and fees. This company loan is a loan that is priced upfront and you’ll be aware of the total amount to be paid, including any interest, fees or charges. Then, it is broken down into either weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business use, including the management of cash flow, business remodels and marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available for personal use.
About Larger Karaka Harbourside Business Loans
What is the Larger Karaka Harbourside Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to be operating for at least three years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can I use the funding for?
A larger company loan can be used for nearly every business purpose including business improvements, purchasing equipment or inventory or as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It’s by way of charge over assets, which could also include registration on the PPSR or the registration of as a caveat.
A director’s or personal ensure is a promise to repay credit that is general in nature, rather than specifying security over a particular asset. The person signing the ensure is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a registration of a security interest.
Caveats are legal document lodged to provide the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans that exceeds $250K, we may offer a preliminary pre-approval to help make the process. It is possible to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial health checks. It’s not an offer of credit or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer that you might receive could be on different conditions.
The application process
Do I qualify for 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 prove at least 6 months of business (for the 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 fast and simple. Just fill out the online application within a couple minutes, and an experienced business loan specialist will call you to help you.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within an hour if you make your application at standard company time and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statement, we’ll offer an answer within just one business day.
For the Larger Business Loan ($100K up to $500,000) we might be able to offer you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain deals have been approved within less than 24 hours.
The fastest way can be make sure you apply during normal business hours. You can also permit us to use the advance bank verification to instantly confirm your bank details online. If you decide to send us copies of your bank statement, it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we typically provide an answer in just one hour if you make your application during standard business hours and you allow us to use the bank verification system to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can offer the decision in just 1 business day.
For the Larger Business Loans ($100K to $500K) We may be capable of offer the conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain agreements have been approved within 24 hours.
The fastest method can be make sure you apply during standard business hours, and let us use the modern bank verification link to verify your bank information online. If you decide to send us the copies of bank statement, it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of variables for determining your well-being of your company and the amount of payments your company will be able to support. The total amount of your loan will depend on the particular circumstances the company.
When you submit an application for a particular amount, we will consider a number of variables to determine the well-being of your business as well as the amount of repayments that your company is able to afford. The amount you receive from your loan will depend on the specific circumstances for your business.
Fees & repayments
How much should you charge for an company loan?
If you decide to request one of our company loans, we’ll assess the risk profile for your business and provide you with a tailored offer that includes loan amount, term and the interest rates. The business loan is an upfront cost loan which means you be aware of the total amount you will have to pay, including charges or interest.
What determines the rate that I am charged?
Business loan interest rates differ based on various factors like the amount of money that is borrowed, what company assets the money will be used for as well as the field the company is operating in, how long the business has been in operation as well as in the event that the business has enough cash flow to pay for the loan, and also the overall well-being and creditworthiness of the company.
What are the charges?
There are no hidden costs with our business loans. You’ll know exactly how much it is that you need to pay and when, right from day one. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You can apply for a loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing 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 loan amount.
Do I have the option of paying off the loan early?
You can decide to repay all of your loan in full at any time.
If you do decide to take this route, please speak to our friendly business loans specialists. The specialists will provide you with details on repayment along with an early payout estimate. It will be calculated using the total of the remaining principal amount and the accrued interest up to the time of early payment plus 1.5 percent of the principal balance plus any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work your cash flow schedule, we offer repayments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing how we collect the information we collect, use, share and secure your information, is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We use an advanced bank verification system to immediately verify your bank account information online to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner makes use of assets they own to get the funding. The asset can be either an asset belonging to the personal, like the family home, or a company asset like a truck or other piece of machinery.
The majority of lenders, including the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan, your asset may be offered for sale by the lender. In essence, it’s the process of securing new funding using the value of what you already own.
Are I need security to get an business loan?
Up to $150,000 in loans no asset security is required upfront to access the money, however we require a personal guarantee. need the personal guarantee. As long as you follow your loan commitments (as specified in your loan contract) and you are able to meet your obligations, asset security is not required. If you take out loans in excess of $150,000 generally there is the option of a personal ensure and security in the form a charge over assets.