FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Kensington Park Small Business Loans
Let me know about the Kensington Park Small Business Loans
Kensington Park unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
You can apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and the money could be available in just 24 hours. Traditional company loans have an annual interest rate along with other charges and fees. The business loan is a cash-based loan so you will be aware in advance of the total amount due, which includes any fees, charges or charges. Then, it is divided into a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business reason, such as cash flow management, company improvements, advertising, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal use.
About Larger Kensington Park Business Loans
What is the Larger Kensington Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify 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 $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funds for?
A large company loan is a great option for almost any company use, including company remodeling, buying inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. It’s as a result of an charge against assets, and may include registering this through the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature, rather than stating security over an asset. The person who signs the guarantee is personally accountable if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central 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 allows preference over private property assigned in accordance with the date on which a security interest that is registered.
A caveat is a legal form of document to provide notice of a legal claim to property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan of more than $250K, we may offer a preliminary pre-approval to help ease the process. We may be able to get this done without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial well-being questions. It is neither an offer nor a guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer you might receive could have different terms.
Application process
Are I eligible for funding?
You can apply for a company 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)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and an experienced business loan specialist will contact you to guide you through the process.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Information on the application including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour – as long as you make your application at quality business time and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statement, we’ll offer the decision in as little as one company day.
For the Larger Business Loan ($100K and up) we could be likely to offer you with conditional pre-approval in around six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved in just 24 hours.
The quickest way to apply can be ensure you apply during standard business hours. Also, allow us to use the advance bank verification link to instantly check your bank’s information online. If you decide to upload the copies of bank statements it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer in just one hour, provided you apply at normal business time and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements, we are able to provide a decision in as little as 1 business day.
For the Larger Business Loans ($100K and up) We may be capable of provide you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Certain agreements have been approved in 24 hours.
The fastest method is to make sure you apply during normal business hours. Also, let us use the modern bank verification to instantly check your bank’s information online. If you upload the copies of bank statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we consider a variety of factors that determine what is the well-being of your company as well as the amount of payments your business will be able to support. The total amount of your loan will depend on the particular circumstances of your business.
When you make an application for a specific amount we will consider a number of aspects to determine how much we can lend you such as well-being that is your business and the amount of repayments your business can support. The amount you receive from the loan will be determined by the particular circumstances of your company.
Fees & repayments
How much should you charge for a business loan?
If you decide to apply for one of our company financing, we’ll assess the risk profile that you have for your company and provide you with a customised offer, including the amount of loan, the term and the interest rates. A business loan is an upfront-priced loan therefore you will know in advance the total amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I will be charged?
Business loan interest rates depend on several factors including the amount borrowed, what business assets the funds are used to purchase in addition to the industry that the company operates in, how long the business has been running for, in the event that the business has enough cash flow to fund the loan, and the overall health or creditworthiness of the company.
What are the fees?
There aren’t any hidden costs with our company loans, and you’ll know precisely how much you need to pay and when, right from the first day. There’s not any 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 are able to request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can choose to repay all of your loan early at any time.
If you are deciding to pursue this option, please speak to our friendly company loan professionals. The specialists will offer you with details on repayment and an early payment figure. The figure will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payment plus 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
To make sure you do not miss payments and to work with your cash flow general, we provide repayments either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear the ways we gather information, use it, and exchange it, as well as protect your information, is crucial and an integral 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 personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to customer security and security. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online so we can offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner makes use of an asset that they own to make a loan. The asset may be an asset belonging to the personal, like the family home or a business property like a truck as well as a piece of machine.
The majority of banks, even the largest banks, are inclined to guarantee loans against assets. If you’re having trouble paying back the loan, your asset may be sold by the lender. In essence, it’s the process of securing additional financing using the worth of the asset you already own.
Do I need security to get a company loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. If you adhere to your loan obligations (as stipulated in your loan contract) Asset security will never be required. If you take out loans in excess of $150K generally, you can get an individual guarantee and security that is in the form an asset charge.