FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Kewdale Small Business Loans
Tell me about the Kewdale Small Business Loans
Kewdale unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an traditional business loan?
The application to get this Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and have the funds available in just 24 hours. Traditional business loans reference an annual interest rate plus other fees and charges. We offer a company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount payable including any fees, charges or charges. This is then broken down into either a daily or weekly installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business purpose including control of cash flow business remodeling, marketing, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About Larger Kewdale Business Loans
What is the Larger Kewdale Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been in operation for at least 3 years with an annual turnover of at least $700K. You must 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 prove at least 12 months of trading.
What can I use the funding for?
A larger company loan is a great option for almost all business need, including business renovations, purchase of new equipment or inventory for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It’s by taking a charge over assets, and may include the registration of this in the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally in nature rather than stating the security of a specific asset. The person who signs the guarantee is personally responsible if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR gives priority over personal property to be assigned according to the date the security interest that is registered.
An affidavit is an official document that is filed to provide an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan that exceeds $250,000 it is possible to offer an initial pre-approval to simplify the process. We might be able to make this decision without a credit verification and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial health checks. It is neither an offer nor a guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you are offered could be based on different conditions.
The application process
Can I be eligible for funding?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Just complete the online application in just a few minutes, and a dedicated business expert in lending will call you to assist you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent twelve months bank statement, an IRD statements Last 2 years’ finalised financial statements, and interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we typically offer an answer in just one hour – as long as you make your application during quality business time and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statements we can provide the decision in just the span of one business day.
For the Larger Business Loan ($100K or more) we may be likely to provide you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Some agreements have been approved in 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. Also, allow us to use the advanced bank verification system link to verify your bank account information online. If you decide to send us duplicates of your banking statements , it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we typically offer an answer in just one hour if you make your application during normal business timings and allow us to use the bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statements, we are able to offer a decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to offer you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain offers have been approved in the space of 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours, and permit us to use the modern bank verification to instantly check your bank’s information online. If you opt to send us copies of your bank statements it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount, we consider a variety of variables for determining your health that is your company as well as the amount of repayments your company is able to afford. The total amount of your loan will depend on the specific circumstances of your company.
When you apply for a specific amount we will consider a number of factors to assess the health of the business as well as the amount of repayments that your company can support. The amount you receive from your loan will depend on the specifics for your business.
Fees & repayments
How much should you charge for an company loan?
If you decide to request business loans with us company loans, we’ll assess the risk profile for your company and provide you with a customised offer including the loan amount, the terms and interest rates. It is a business loan is an upfront cost loan so you will know in advance the total amount payable including any costs, fees, or interest rates.
What determines the amount I pay?
The interest rates on business loans rates depend on a variety of factors including the amount that is borrowed, what business assets the funds are used to purchase in addition to the industry that the company is operating in, how long the business has been operating as well as whether the business has enough cash flow to cover the loan, and the overall well-being or financial standing of the business.
What are the costs?
There are no hidden fees for our business loans. You’ll know precisely what you be required to pay, and when, from the day you sign up. There’s not any compounding interest and no extra fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to make an application for loans no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan in advance?
You can decide to repay the entire amount of your loan at any point in time.
If you choose to take this route, please call our helpful business loan professionals. We will provide you with repayment details and an early payout figure. It will be calculated using the total of the principal remaining and any accrued interest at the time of the early payout in addition to 1.5 percent of the remaining principal and any outstanding fees.
What is the process for repayments?
To ensure you do not miss repayments and to fit in with your cash flow standard, we offer repayments either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and secure your information, is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated bank verification system to instantly verify your bank account information online, allowing us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an business owner makes use of assets they own to secure a loan. The asset can be either an individual property, such as the family home or it could be a business asset such as a truck or piece or equipment.
The vast majority of the lenders including the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, your assets could be offered for sale by the lender. In essence it is an opportunity to secure new funding taking advantage of the value of what you already have.
What do I require security to secure a business loan?
For loans of up to $150K, the requirement for asset security is not required upfront to access the money however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan obligations (as stipulated in the loan contract) the security of assets is not needed. For loans of over $150K generally, there is the option of a personal ensure and security that is in the form an asset charge.