FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Kenwick Small Business Loans
Tell me how you are able to avail the Kenwick Small Business Loans
Kenwick unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
Apply to get the Small Business Loan in under 10 minutes over the phone, receive a same day response and the funds could be in your account in 24 hours. Traditional business loans reference an interest rate per annum along with other charges and fees. The company loan is a pre-paid loan which means you know in advance the amount you will have to pay, including any interest, fees or charges. This is then broken down into a daily or weekly payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business need, such as cash flow management, company remodels and marketing to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
About Larger Kenwick Business Loans
What is the Larger Kenwick Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan can be used for almost any company purpose including business renovations, purchase of new equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It is usually by taking a charge over assets and can include registration through the PPSR or registering as a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is generally based rather than specifying security over a particular asset. The person who is signing the ensure is personally responsible if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including items or assets). The PPSR permits the priority of personal property granted according to the date a security interest has been registered.
A caveat is a legal document filed to provide notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250,000, we may offer an initial pre-approval to make the process. It is possible to make this decision without a credit verification and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial well-being checks. This is not an offer of credit or guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer that you might receive could have different conditions.
The application process
Do I qualify for funds?
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)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form within a couple minutes, and a dedicated company credit specialist will contact you to guide you.
To apply for up $100,000, you’ll require ID details (valid Driver’s License), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Application details including credit consent and 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer in just one hour, provided you apply within standard company timings and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your bank statements , we are able to provide a decision in just 1 company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be in a position to offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Some agreements have been approved in just 24 hours.
The quickest method would be to make sure you apply during standard company hours and allow us to use the advance bank verification to verify your bank account information online. If you send us the copies of bank statements it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we usually provide an answer in just one hour if you apply within normal business time and permit us to use the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements, we are able to provide an answer in just one business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of offer you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Some transactions have received approval within the space of 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours and permit us to use the advanced bank verification system to check your bank’s information online. If you decide to upload copies of your bank statements it takes a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a specific amount we will consider a number of elements in order to assess your well-being for your business and the extent of repayments your business is able to afford. The amount you receive from your loan will depend on the specifics that are unique to your company.
When you submit an application for a certain amount, we take into consideration a variety of variables to determine your health of your business and the extent of the repayments your company can afford. The total amount of your loan will depend on the particulars for your business.
Fees & repayments
How do you charge for an company loan?
If you decide to apply for one of our company loan, we will assess the risk profile that you have for your business and offer you with a customised offer that includes the amount of the loan, the duration and interest rates. A company loan is an upfront cost loan and you’ll be aware of the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I pay?
Interest rates for business loans rates depend on a variety of variables like the amount to be borrowed, what company assets the funds are used to purchase and the sector the company is in, how long the company is in operation for, how long the company has sufficient cash flow to support the loan, and also the overall well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden charges for our business loans. You’ll know exactly how much it is that you need to pay, and when, right from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments punctually).
We don’t charge an application fee. You can request a credit loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated 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 percentage of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the total amount of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful company loan experts. They will offer you with the details of your repayment and an early payment figure. This is calculated as the sum of the principal amount remaining and accrued interest to the time of the early payout in addition to 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
To make sure you do not miss payment dates and to align your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be secure?
Protecting your information, and being clear about how we collect, use, exchange and protect your information, is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We make use of an advanced banking verification system to instantly verify your bank account information online so we can provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner borrows from assets they own to secure a loan. The asset may be an asset belonging to the personal, like the family home, or an company property like a truck as well as a piece of machine.
The vast majority of the lenders even the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, the asset might be offered for sale by the lender. In essence it’s means of securing additional financing using the value of what you already own.
What do I need security to get an company loan?
Up to $150,000 in loans no asset security is required in advance to gain access to the funds however, we require a personal guarantee. require the personal guarantee. In the event that you fulfill the loan terms (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150K typically, you will need the option of a personal ensure and security in the form charges on assets.