FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kensington Small Business Loans
Tell me what you think of the Kensington Small Business Loans
Kensington unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
Apply to the Small Business Loan in under 10 minutes over the phone, receive a same day response and the funds could be in your account within 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. We offer a business loan is a loan that is priced upfront and you’ll be aware of the total amount payable including any fees, charges or charges. Then, it is broken down into either weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business need, such as the management of cash flow, business renovations, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Kensington Business Loans
What is the Larger Kensington Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be utilised?
A large business loan can be used for almost every company need, including company renovations, purchase of 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 for funding of more than $150,000. This is by taking a charge on assets, which could also include registering this through the PPSR or the registration of 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 of a specific asset. The person signing the guarantee is personally liable in the event that the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date the security interest has been registered.
Caveats are legal document filed to offer the legal claim against a property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger company loans that is greater than $250,000, we may offer a preliminary pre-approval to help smooth out the process. We might be able to get this done without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering some financial well-being checks. This is not an offer or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer that you might receive could be based on different terms.
The application process
Do I have the right to receive funds?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for 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 simple. Complete the online form within a couple minutes, and a dedicated business loan specialist will call you to help you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License), a valid NZBN/IRD as well as at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour – as long as you apply within quality company timings and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements , we will be able to offer the decision within the span of one company day.
For the Larger Business Loan ($100K to $500K) we may be likely to offer you with pre-approval conditional to your application within about 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Certain agreements have been approved in 24 hours.
The quickest way to apply is to ensure you apply during standard company hours and allow us to use our modern bank verification to confirm your bank details online. If you upload duplicates of your banking statements it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we usually provide an answer in just one hour – as long as you submit your request within normal business timings and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statements, we’ll be able to offer the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be able to provide you with conditional pre-approval within six hours. Once you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Certain deals have been approved in just 24 hours.
The quickest method is to ensure you apply during standard business hours. Also, allow us to use our sophisticated bank verification link to instantly verify your bank information online. If you opt to upload duplicates of your banking statement, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we take into consideration a range of elements to determine what is the well-being of your business and the extent of payments your business can afford. The amount you receive from the loan will be determined by the specifics that are unique to your business.
When you submit an application for a particular amount, we will consider a number of variables to determine how much we can lend you such as health that is your company and the extent of repayments your company will be able to support. The total amount of the loan will be determined by the particulars that are unique to your business.
Fees & repayments
What is the cost for an business loan?
When you apply for one of our business loan, we’ll assess the risk assessment of your company and provide you with a customised offer including loan amount, term and interest rates. It is a business loan is an upfront cost loan so you will know the exact amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I will be charged?
The interest rates on business loans rates differ based on various variables like the amount to be borrowed, what business assets the money are used to purchase as well as the field the business operates in, the long the business has been in operation, in the event that the business has enough cash flow to pay for the loan, and also the general health or creditworthiness of the company.
What are the costs?
There are no hidden costs with our company loans, and you’ll know exactly how much it is that you need to pay, and when, from day one. There’s not any compounding interest and no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can make an application for loans no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I repay the loan in advance?
You can decide to repay the entire amount of the loan at any point in time.
If you choose to do this please contact our helpful business loans experts. They’ll offer you with repayment details and an early payout figure. This is calculated as the sum of the principal balance and accrued interest to the time of early payout, plus 1.5 percent of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To ensure you do not miss payment dates and to align with your cash flow routine, we provide payments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about the ways we gather, use, exchange and secure your information, is crucial and is an essential part 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 sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We utilise a sophisticated bank verification system to immediately verify your bank account details online so we can provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the business owner borrows from an asset that they own to obtain the loan. The asset may be an individual property, such as the family home or a business property like a truck or piece or equipment.
The majority of banks, even the big banks, tend to make loans secured by assets. If you’re having trouble paying back the loan, then the asset might be offered for sale by the lender. In essence, it is means of securing new funding using the worth of the asset you already own.
Should I require security for a business loan?
Up to $150,000 in loans the requirement for asset security is not required prior to the loan’s access, however we require a personal guarantee. require the personal guarantee. If you adhere to the loan terms (as specified in the loan contract) the security of assets will never be required. If you take out loans in excess of $150,000 typically, you will need a personal guarantee and security is provided in the form of an asset charge.