FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Korokoro Small Business Loans
Let me know about the Korokoro Small Business Loans
Korokoro unsecured loans provides 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 how is the Unsecured Loan different from the traditional business loan?
The application to this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and funds may be in your account in 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. We offer a company loan is an upfront priced loan therefore you’ll know ahead of time the total amount due, which includes any fees, interest or charges. This is then broken down into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business need, such as the management of cash flow, company remodeling, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal use.
About larger Korokoro Business Loans
What is the Larger Korokoro Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your business needs to be trading for at least 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost all business need, including company renovations, to purchase equipment or inventory for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It is usually as a result of an charge on assets and can be registered in the PPSR or making as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is general in nature, rather than defining the security for a particular asset. The person who signs the guarantee is personally accountable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including objects or assets). The PPSR permits preference over private property granted according to the date a security interest that is registered.
Caveats are legal form of document to offer notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval to simplify the process. We might be able to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves you answering a few financial health checks. It is neither an offer nor a guarantee of finance. A conditional approval is subject a full credit assessment and any offer you might receive could have different conditions.
Do I qualify for funds?
You can apply for an business 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 worth of trade (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a couple minutes, and an experienced company loan specialist will be in touch to guide you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s License) as well as a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) We can usually provide an answer within one hour – as long as you apply during quality company hours and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statements we can provide an answer in as little as 1 company day.
If you are applying for a Larger Business Loan ($100K or more) we could be able to provide the conditional pre-approval in around six hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Some deals have been approved within just 24 hours.
The quickest method would be to ensure you apply during standard business hours and permit us to use the modern bank verification link to verify your bank account information online. If you opt to send us documents from your account statement, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we typically offer a response in one hour – as long as you apply within normal business time and you allow us to use the bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements we can offer a decision in as little as an business day.
For the Larger Business Loans ($100K to $500K) we might be able to provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain deals have been approved within 24 hours.
The fastest method would be to make sure you apply during normal business hours, and allow us to use the modern bank verification to instantly verify your bank account information online. If you upload copies of your bank accounts, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of aspects for determining your health that is your company as well as the amount of payments your company is able to afford. The amount you receive from your loan will be contingent on the specifics of your company.
When you make an application for a certain amount, we will consider a number of variables to assess how much we can lend you such as health for your business as well as the amount of payments your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances the company.
Fees & repayments
How much do you charge for the cost of a company loan?
When you request one of our business loan, we’ll assess the risk assessment that you have for your business and offer you with a customised offer, including loan amount, term and the interest rates. This company loan is an upfront priced loan so you will be aware of the total amount you will have to pay, including charges or interest.
What is the basis for the rate I am charged?
The interest rates on business loans rates vary due to factors such as the amount that is that is borrowed, what business assets the money are used to purchase and the sector the company operates in, how long the company has been running for, whether the business has sufficient cash flow to support the loan, and the overall well-being and creditworthiness of the business.
What are the fees?
There are no hidden costs for our business loans, and you’ll be aware of the amount it is that you need to pay and at what time, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We don’t charge an Application Fee. You can apply for a loan with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved 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 percent of the amount of loan.
Can I pay off the loan in advance?
You can decide to repay the total amount of your loan early at any time.
If you are deciding to do this please contact our helpful business loans experts. They will offer you with the details of your repayment along with an early payout estimate. It will be calculated using the total of the principal remaining and accrued interest to the time of early payment plus 1.5 percent of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To ensure that you don’t miss repayments and to fit in your cash flow schedule, we provide payments that are either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about the ways we gather information, use it, and exchange it, as well as protect your information, is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We make use of an advanced bank verification system that allows you to immediately confirm your bank account information online so we can provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term “asset-based” refers to borrowing where an business owner uses assets they own to obtain a loan. The asset may be an individual property, such as the family home, or a business asset like a truck or piece of equipment.
The majority of banks, even the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan then your asset may be offered for sale by the lender. In essence, it’s means of securing new financing using the value of what you already own.
What do I require security to get a business loan?
For loans that exceed $150K, there is no requirement for asset security before you are able to access the money but we do need the personal guarantee. If you adhere to the loan terms (as stipulated in your loan contract document) the security of assets will never be required. If you take out loans in excess of $150K typically, you will need the option of a personal ensure and security in the form of an asset charge.