FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Kilkenny Small Business Loans
Tell me what you think of the Kilkenny Small Business Loans
Kilkenny unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is how 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 by phone. You will receive an immediate response, and the funds could be in your account within 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. Our company loan is a cash-based loan therefore you’ll know ahead of time the total amount payable including any interest, fees or charges. Then, it is broken down into either weekly or daily installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost every business purpose including managing cash flows, business renovations, marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal use.
About the Larger Kilkenny Business Loans
What is the Larger Kilkenny Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to have been in operation for at least 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A larger company loan can be used for nearly all business purpose including company renovations, purchase of new equipment or inventory or as 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 required to access funding over $150,000. This can be done as a result of an charge against assets, and could include registration through the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is generally in nature rather than defining security over an asset. The person who signs the ensure is personally liable in the event that the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned according to the date a security interest that is registered.
A caveat is a legal form of document to offer the legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger business loans that is greater than $250K we may be able to provide an initial pre-approval in order to simplify the process. It is possible to apply for this without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial health questions. This is not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer you may receive may be on different conditions.
The application process
Do I qualify for funds?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (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 fast and easy. Just fill out the online application within a few minutes and a dedicated business lending specialist will contact you to guide you through the process.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent and 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we can often offer an answer in just one hour – as long as you make your application at quality company time and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statement, we’ll provide an answer in as little as 1 business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to provide you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal company hours. You can also allow us to use our modern bank verification to check your bank’s information online. If you upload documents from your account statements it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide a response in one hour – provided you make your application in standard business time and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statements we can provide the decision in as little as the span of one business day.
For the Larger Business Loans ($100K up to $500,000) We may be able to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Certain offers have been approved within less than 24 hours.
The most effective method is to ensure you apply during standard business hours. You can also allow us to use the advance bank verification link to instantly verify your bank information online. If you upload the copies of bank statement, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a specific amount we consider a variety of variables for determining what is the health for your business and the extent of the repayments your company is able to afford. The amount you receive from the loan will be determined by the specifics the company.
When you apply for a set amount, we look at a range of variables to determine how much we can lend you such as well-being for your company and the level of repayments that your company can afford. The total amount of your loan will be determined by the specifics that are unique to your company.
Fees & repayments
What is the cost for an business loan?
If you decide to apply for our company loans, we’ll assess the risk profile that you have for your company and offer you with a customised proposal that includes the amount of loan, the term and interest rates. It is a business loan is an upfront-priced loan which means you know the exact amount due, which includes any costs, fees, or interest rates.
What determines the amount I pay?
The interest rates on company loans rates vary due to factors like the amount of money borrowed, the company assets the funds will be used for and the sector the company operates in, how long the company has been running as well as what percentage of the company has sufficient cash flow to fund the loan, and overall health or financial standing of the business.
What are the cost?
There aren’t any hidden charges with our company loans. You’ll know exactly how much it is that you be required to pay, and when, starting from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We do not charge an application fee. You can make an application for loans with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay the total amount of your loan early at any time.
If you choose to take this route, please call our helpful business credit experts. We will offer you with details on repayment as well as an early payout amount. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payout in addition to 1.5 percent of the principal amount remaining and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow standard, we offer repayments either weekly or daily. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange and protect your information, is vital and is a crucial part 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 sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to customer security and security. We use an advanced bank verification system link to instantly verify your bank account details online so we can offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the company owner uses the assets they have to get the loan. The asset can be either a personal asset like the family home or it could be a business asset such as a truck or piece of equipment.
The majority of banks, even the big banks, tend to make loans secured by assets. If you’re struggling to pay back the loan, then your assets could be offered for sale by the lender. In essence it is means of securing additional financing making use of the value of what you already own.
Do I need security to secure an company loan?
For loans that exceed $150K, there is no requirement for asset security prior to the loan’s access, however we require a personal guarantee. require a personal guarantee. If you adhere to your loan obligations (as stipulated in your loan contract document) the security of assets will never be needed. For loans over $150,000 typically, you will need an individual ensure and security is provided in the form of a charge over assets.