FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Kent Town Small Business Loans
Tell me what you think of the Kent Town Small Business Loans
Kent Town unsecured loans offers the range of $5,000 to $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 is the Unsecured Loan different from an traditional business loan?
Apply to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive an instant response and the funds could be available in just 24 hours. Traditional business loans have an annual interest rate along with other charges and fees. The company loan is a pre-paid loan so you will be aware of the total amount payable including any interest, fees or charges. Then, it is divided into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business use, including cash flow management, company remodels and marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
Concerning Larger Kent Town Business Loans
What is the Larger Kent Town Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be operating for a minimum of 3 years and generate an annual revenue of $700,000. It is necessary to be 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 demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost any company reason, such as company renovations, to purchase equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. This can be done by taking a charge against assets, and may include registration in the PPSR or the registration of as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is generally in nature rather than defining security over a particular asset. The person who signs the ensure is personally liable in the event that the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR gives preference over private property granted according to the date the security interest that is registered.
An affidavit is an official form of document to provide the legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250K it is possible to offer an initial pre-approval that will help make the process. It is possible to make this decision without a credit verification and within six hours of your initial application. This pre-approval is based on an initial assessment that includes you answering some financial well-being checks. It is not an offer or guarantee of finance. A conditional approval is subject an assessment of your creditworthiness and any offer you may receive may be on different terms.
Application process
Are I eligible for funding?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in few minutes and a dedicated company credit specialist will be in touch to guide you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s License), an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent as well as 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we typically offer an answer within an hour if you submit your request in standard company times and allow us to use the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statements , we are able to provide a decision in as little as the span of one company day.
For Larger Business Loans ($100K to $500K) we may be capable of provide you with a conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some offers have been approved within just 24 hours.
The most effective method would be to make sure you apply during standard company hours. You can also permit us to use the advanced bank verification system link to instantly confirm your bank details online. If you upload copies of your bank statements it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour – provided you make your application during standard business timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statements, we’ll be able to provide the decision within one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be in a position to provide the conditional pre-approval within six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain agreements have been approved within less than 24 hours.
The most efficient method is to make sure you apply during normal business hours and let us use the sophisticated bank verification to verify your bank information online. If you upload documents from your account statements it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of variables in order to assess your well-being for your business as well as the amount of repayments that your company can afford. The amount you receive from the loan will be determined by the particular circumstances that are unique to your business.
When you make an application for a set amount, we take into consideration a variety of elements to assess your health of your company as well as the amount of the repayments your company will be able to support. The total amount of the loan will be determined by the particulars of your company.
Fees & repayments
How much do you charge for the cost of a business loan?
When you request business loans with us business loans, we will assess the risk assessment for your business and provide you with a customised proposal that includes the loan amount, the terms and the interest rates. The company loan is a loan that is priced upfront therefore you will be aware of the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I will be charged?
The interest rates on business loans rates depend on a variety of factors including the amount of money borrowed, the business assets the money will be used for as well as the field the company operates in, the long the company has been in operation, what percentage of the company has sufficient cash flow to cover the loan, as well as the overall health or financial standing of the company.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll know precisely what you’ll be required to pay and when, from day one. There’s not any compounding interest and no extra fees (as as you make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan with no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing 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 pay out the loan in advance?
You can decide to repay the entire amount of your loan early at any time.
If you choose to pursue this option, please talk to one of our helpful business loans professionals. The professionals will offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the total of the principal amount remaining and any accrued interest at the date of early payout in addition to 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss due dates and also to be in line your cash flow cycle we provide repayments either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and knowing how we collect data, process, exchange and protect your information, is crucial and is an essential aspect 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 personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We employ an exceptionally sophisticated bank verification system to immediately verify the bank account details online so we can provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner borrows from assets they own to obtain the funding. The asset may be an asset belonging to the personal, like the family home or a business asset such as a vehicle or piece of equipment.
The vast majority of lenders, not just the largest banks, are inclined to guarantee loans against assets. If you have trouble paying back the loan then your asset may be sold by the lender. In essence, it’s the process of securing additional financing making use of the value of what you already own.
What do I require security to get an company loan?
For loans of up to $150,000, the requirement for asset security is not required upfront to access the money, however we do need a personal guarantee. As long as you follow the loan terms (as stipulated in the loan contract), asset security is not required. For loans of over $150K typically, you will need a personal guarantee and security in the form a charge over assets.