FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Karaka Harbourside Small Business Loans
Tell me more about Karaka Harbourside Small Business Loans
Karaka Harbourside unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an traditional business loan?
Apply to this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and funds may be on your account within 24 hours. Traditional company loans refer to an interest rate per annum together with additional fees and charges. The business loan is a cash-based loan so you will know in advance the total amount payable including the interest, fees and charges. Then, it is broken down into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every business reason, such as cash flow management, company remodeling, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
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 company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan of this size the business needs to be trading for at least 3 years, and have an annual income 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 company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funding for?
A Business Loan of a larger size is a great option for almost any business reason, such as company remodeling, buying 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 a secured loan?
Asset security is necessary for funding of more than $150,000. It’s by way of charge on assets and can include registration through the PPSR or filing a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is general in nature, rather than specifying the security for a particular asset. The person signing the ensure is personally responsible if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR allows preference over private property assigned according to the date a security interest was registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger company loans that is greater than $250K we can offer a preliminary pre-approval to help ease the process. We may be able to do this without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial well-being questions. It’s in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to an extensive credit evaluation and any offer you are offered could be based on different conditions.
The application process
Do I have the right to receive funds?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form in just a few minutes, and an experienced business loan specialist will be in touch to help you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence), an active NZBN/IRD, and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Information on the application including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer in just one hour – as long as you apply during standard company hours and allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we are able to offer an answer within one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be likely to offer you with a conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some agreements have been approved within 24 hours.
The quickest way to apply is to ensure you apply during normal business hours. You can also allow us to use the advanced bank verification system to instantly confirm your bank details online. If you upload copies of your bank statements it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour – provided you submit your request in standard business timings and permit us to use the bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statements we can offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be in a position to provide you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain deals have been approved within just 24 hours.
The fastest method can be make sure you apply during normal business hours. You can also permit us to use the advance bank verification link to check your bank’s information online. If you decide to send us copies of your bank statement, it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you make an application for a specific amount we will consider a number of factors to determine the health of your business as well as the amount of repayments your company can support. The total amount of the loan will be determined by the specific circumstances of your business.
When you submit an application for a certain amount, we look at a range of aspects to assess how much we can lend you such as well-being for your business as well as the amount of repayments that your business will be able to support. The total amount of your loan will depend on the particulars for your company.
Fees & repayments
How do you charge for a company loan?
If you decide to request business loans with us business loans, we’ll assess the risk profile for your business and provide you with a customised offer that includes the amount of the loan, the duration and the interest rates. This company loan is a loan that is priced upfront so you will be aware in advance of the total amount payable including any interest rates, fees or charges.
What determines the amount I’m charged?
Business loan interest rates depend on several variables like the amount to be that is borrowed, what business assets the funds are used to purchase, the industry the company is operating in, how long the business has been in operation as well as in the event that the business has sufficient cash flow to fund the loan, and general well-being or financial standing of the company.
What are the cost?
There aren’t any hidden costs for our business loans, and you’ll know exactly how much you’ll be required to pay and when, starting from the first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We do not charge an Application Fee. You are able to apply for a loan no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan early?
You may choose to pay back the entire amount of your loan early at any time.
If you do decide to do this please speak to our friendly business lending experts. They will offer you with repayment details as well as an early payout amount. It will be calculated using the total of the remaining principal amount and accrued interest to the time of early payout, plus 1.5 percent of the principal balance plus any outstanding fees.
How do repayments work?
To help you avoid missing repayments and to fit in with your cash flow general, we offer repayments either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear how we collect, use, exchange and protect your information, is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to security for our customers and security. We make use of an advanced bank verification system that allows you to immediately confirm your bank account information online. This allows us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner uses assets they own to secure the funding. The asset can be either an individual asset, such as the family home, or an company asset such as a truck or other piece of machinery.
The vast majority of the lenders including the largest banks, are inclined to guarantee loans against assets. If you have trouble paying back the loan then your asset may be taken over by the lender. In essence it is the process of securing new funding using the worth of the asset you already have.
Are I need security for an company loan?
For loans of up to $150,000, the requirement for asset security is not required in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. So long as you comply with your loan commitments (as detailed in your loan contract) the security of assets will never be needed. If you take out loans in excess of $150K generally, there is the option of a personal ensure and security in the form the charge of assets.