FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kirrawee Small Business Loans
Let me know about the Kirrawee Small Business Loans
Kirrawee unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and the funds could be available in just 24 hours. Traditional company loans are based on an annual interest rate as well as other fees and charges. The company loan is a pre-paid loan and you’ll know ahead of time the total amount payable including the interest, fees and charges. Then, it is divided into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company reason, such as managing cash flows, company renovations, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
About the Larger Kirrawee Business Loans
What is the Larger Kirrawee Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been in operation for at least 3 years with 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 to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A larger business loan can be used for nearly any company reason, such as company improvements, purchasing equipment or inventory, as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. This is in the form of a charge on assets, and could include registering this on the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to repay a loan which is general in nature, rather than defining the security for a particular asset. The person signing the guarantee is personally liable in the event that the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including objects or assets). The PPSR permits preference over private property assigned according to the date the security interest was registered.
Caveats are legal document lodged to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan that exceeds $250K, we may offer an initial pre-approval in order to make the process. It is possible to make this decision without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial well-being checks. It’s in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you receive could be on different conditions.
The application process
Can I be eligible for funding?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a couple minutes, and a dedicated company loan specialist will contact you to help you.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank statements, IRD statement as well as the two most recent years’ financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer in just one hour if you apply within quality company timings and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statements , we will be able to offer the decision in as little as one company day.
For the Larger Business Loan ($100K to $500K) we might be in a position to offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain transactions have received approval in 24 hours.
The fastest way would be to make sure you apply during normal company hours and let us use the advanced bank verification system link to instantly check your bank’s information online. If you opt to upload the copies of bank statement, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we usually provide an answer within one hour – as long as you submit your request in normal business time and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your bank statements, we will be able to provide the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) We may be able to offer you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain offers have been approved in 24 hours.
The fastest way is to ensure you apply during standard business hours and permit us to use the modern bank verification link to confirm your bank details online. If you choose to upload documents from your account accounts, it will take a little longer.
What’s the minimum amount I can 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 that determine the well-being that is your company as well as the amount of payments your business can afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your company.
When you submit an application for a set amount, we look at a range of elements to determine your well-being of your business and the extent of repayments your business will be able to support. The total amount of the loan will be determined by the specific circumstances of your business.
Fees & repayments
What is the cost for an business loan?
If you decide to request one of our company loan, we’ll assess the risk profile the company and offer an individualised offer, including the amount of loan, the term and interest rates. It is a company loan is an upfront cost loan therefore you will know in advance the total amount payable including any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates depend on a variety of factors including the amount that is borrowed, what company assets the funds are used to purchase in addition to the industry that the company operates in, the long the business has been running for, in the event that the business has enough cash flow to cover the loan, and also the overall well-being or financial standing of the business.
What are the costs?
There are no hidden costs with our business loans, and you’ll know precisely how much you be required to pay and at what time, from the day you sign up. 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 can get a cash loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing 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% of the amount of loan.
Can I pay off the loan early?
You can repay the entire amount of your loan early at any time.
If you are deciding to do this please call our helpful company lending professionals. The professionals will provide you with repayment details and an early payout figure. It will be calculated using the sum of the principal remaining and accrued interest to the time of early payout, plus 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
To ensure you do not miss payments and to work with your cash flow cycle we offer repayments that are either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We make use of an advanced bank verification system link 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 is when a business owner borrows from assets they own to obtain the funding. The asset can be an individual asset, such as the family home or an company asset such as a truck or other piece of machinery.
The majority of the lenders including the banks with the biggest size, prefer to secure loans against assets. If you are having difficulty paying back the loan, then your assets could be sold by the lender. In essence it is the process of securing new funding making use of the value of what you already own.
Do I require security to get a business loan?
Up to $150K in loans it is not necessary to secure assets upfront to access the money but we do require an individual guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract document) Asset security is not needed. For loans of over $150,000 generally, you are able to get personal ensure and security in the form of a charge over assets.