FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Khandallah Small Business Loans
Tell me what you think of the Khandallah Small Business Loans
Khandallah unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from a traditional business loan?
The application to the Small Business Loan in under 10 minutes on the internet 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 business loans have an annual interest rate together with additional fees and charges. We offer a company loan is a loan that is priced upfront so you will be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business purpose including managing cash flows, business renovations, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
Concerning Larger Khandallah Business Loans
What is the Larger Khandallah Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be operating for at least three years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A large company loan can be used to fund almost any business use, including business improvements, purchasing new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This can be done by way of charge against assets, and could include registration with the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to repay credit that is general in nature rather than stating security over a particular asset. The person signing the ensure is personally liable in the event that the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR grants the priority of personal property granted depending on the date that a security interest has been registered.
An affidavit is an official form of document to provide the legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger business loans that is greater than $250,000 we may be able to provide a preliminary pre-approval to help make the process. We could be able to do this without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health questions. This is not an offer of credit or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer that you receive could be subject to different terms.
Do I qualify for funds?
You may be eligible for an business 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)
- you must prove at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a few minutes and an experienced business loan specialist will contact you to help you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) and an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent twelve months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within an hour, provided you submit your request in standard business timings and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements , we are able to offer a decision in just 1 business day.
For Larger Business Loans ($100K up to $500,000) we could be able to provide the conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved within just 24 hours.
The quickest method is to make sure you apply during standard business hours, and let us use the modern bank verification link to instantly verify your bank account information online. If you choose to upload documents from your account statements , it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) we can often provide an answer in just one hour – as long as you submit your request at standard business timings and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements, we are able to offer a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be able to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Some transactions have received approval within just 24 hours.
The most effective method would be to make sure you apply during standard business hours and allow us to use our sophisticated bank verification to verify your bank information online. If you upload duplicates of your banking statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount we will consider a number of factors to determine the health of your company and the amount of repayments your company can support. The total amount of the loan will be determined by the specific circumstances the company.
When you apply for a certain amount, we look at a range of elements to determine the well-being for your business and the amount of the repayments your company can afford. The amount you receive from your loan will depend on the specific circumstances for your company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to make an application for our company loan, we’ll assess the risk profile for your company and provide you with a tailored offer including loan amount, term and interest rates. The business loan is an upfront cost loan therefore you will be aware of the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I pay?
The interest rates on business loans rates depend on a variety of factors such as the amount that is of money borrowed, the business assets the money are used to purchase in addition to the industry that the company operates in, the long the business has been operating for, whether the business has enough cash flow to fund the loan, and the overall health or creditworthiness of the company.
What are the cost?
There aren’t any hidden charges with our business loans. You’ll know precisely how much it is that you be required to pay and when, right from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You can choose to repay the entire amount of your loan in full at any time.
If you are deciding to pursue this option, please talk to one of our helpful business lending professionals. They will offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal remaining and accrued interest to the date of early payout, plus 1.5% of the principal remaining as well as any outstanding fees.
What are the repayment methods?
To ensure you do not miss payment dates and to align with your cash flow routine, we provide repayments either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about how we collect data, process, exchange and secure 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 use industry recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We make use of an advanced bank verification system link to immediately verify your bank account information online to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term “asset-based” refers to borrowing where an business owner uses an asset they own to make the funds for a loan. The asset can be an individual property, such as the family home, or it could be a business asset like a truck as well as a piece of machine.
The majority of lenders, even the big banks, tend to make loans secured by assets. If you are having difficulty paying back the loan then the asset could be taken over by the lender. In essence it’s a way of securing new funding using the worth of the asset you already have.
Should I need security to get a business loan?
For loans of up to $150,000, no asset security is required before you can access the money However, we do require the personal guarantee. As long as you follow your loan commitments (as stated in your loan contract document) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150K typically, you will need the option of a personal guarantee and security in the form of charges on assets.