FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Calista Small Business Loans
Tell me what you think of the Calista Small Business Loans
Calista unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from an ordinary business loan?
Apply to get this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the funds could be in your account in 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. We offer a business loan is an upfront priced loan which means you be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into either weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company need, such as control of cash flow company 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 the Larger Calista Business Loans
What is the Larger Calista Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large the company needs to be trading for at least 3 years and have an annual turnover of at least $700K. The applicant must also 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 the least 12 months of operating.
What can I use the funding for?
A large company loan can be used for nearly every company purpose including company renovations, to purchase new equipment or inventory for general working capital and 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 taking a charge on assets, which could also include registration on the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally in nature rather than specifying security over a particular asset. The person who signs the guarantee is personally responsible if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR gives priority over personal property to be assigned according to the date a registration of a security interest.
A caveat is a legal form of document to provide the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250K it is possible to offer an initial pre-approval that will help simplify the process. We might be able to get this done without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial health checks. This is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you are offered could be subject to different terms.
The application process
Can I be eligible for funding?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and an experienced business credit specialist will be in touch to guide you through the process.
To apply for up to $100,000 you’ll require ID details (valid Driver’s License) along with a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank statements, IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer within one hour if you apply within quality business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statements we can provide the decision within just the span of one company day.
For Larger Business Loans ($100K or more) we could be likely to provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain offers have been approved within 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours, and allow us to use the advance bank verification link to confirm your bank details online. If you choose to send us duplicates of your banking statement, it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we usually provide an answer in just one hour, provided you make your application during normal business timings and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to upload 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 and up) We may be likely to offer you with conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain agreements have been approved within 24 hours.
The most efficient method can be make sure you apply during normal business hours. You can also permit us to use the modern bank verification link to verify your bank account information online. If you choose to upload the copies of bank accounts, it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a certain amount we consider a variety of elements in order to assess what is the health of your business and the extent of the repayments your company can support. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
When you apply for a specific amount we consider a variety of aspects to assess your well-being of your company as well as the amount of payments your company can afford. The total amount of your loan will be determined by the specific circumstances of your business.
Fees & repayments
How much should you charge for a business loan?
If you decide to request the business credit, we’ll assess the risk profile that you have for your business and offer you with a customised offer that includes loan amount, term and the interest rates. A business loan is an upfront priced loan so you will be aware in advance of the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I pay?
The interest rates on company loans rates vary due to factors such as the amount that is of money borrowed, the company assets the money are used to purchase and the sector the business is operating in, how long the company has been in operation, whether the business has sufficient cash flow to cover the loan, and the overall health or financial standing of the company.
What are the costs?
There aren’t any hidden costs with our company loans, and you’ll know exactly how much you’ll need to pay, and at what time, from day one. There’s no compounding interest, and there are no additional charges (as long as you make your payments in time).
We do not charge an application fee. You are able to make an application for loans with 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. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan early?
You can repay the entire amount of your advance loan at any time.
If you do decide to pursue this option, please speak to our friendly company credit specialists. The professionals will provide you with the details of your repayment and an early payout figure. This will be calculated as the sum of the remaining principal amount and any accrued interest at the date of early payout, plus 1.5 percent of the principal remaining and any outstanding fees.
What is the process for repayments?
To make sure you do not miss due dates and also to be in line your cash flow schedule, we provide repayments either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing the ways we gather data, process, exchange and ensure the security of your information is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and security. We utilise a sophisticated bank verification system link to instantly verify your bank account information online to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner borrows from an asset that they own to obtain the funds for a loan. The asset can be a personal asset like the family home, or an company asset such as a truck or piece or equipment.
The majority of the lenders including the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan then your assets could be taken over by the lender. In essence, it is means of securing new financing using the value of what you already have.
Should I require security to get an company loan?
For loans up to $150K there is no requirement for asset security prior to the loan’s access However, we require a personal guarantee. require the personal guarantee. If you adhere to your loan obligations (as specified in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150K typically, you will need an individual ensure and security that is in the form the charge of assets.