FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kenthurst Small Business Loans
Let me know more about Kenthurst Small Business Loans
Kenthurst unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an ordinary business loan?
The application to get your Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and the money could be available in just 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. We offer a business loan is a pre-paid loan therefore you’ll be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business reason, such as managing cash flows, business renovations, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal purposes.
Concerning Larger Kenthurst Business Loans
What is the Larger Kenthurst Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can the funding be used for?
A Larger Business Loan can be used for almost any company purpose including business remodeling, buying new equipment or inventory or as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It’s by way of charge on assets, and may be registered through the PPSR or making as a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is general in nature, rather than specifying security over an asset. The person signing the guarantee is personally liable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR permits preference over private property assigned according to the date a security interest has been registered.
The caveat can be described as a formal document that is filed to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan of $250K or more, we may offer an initial pre-approval in order to ease the process. We might be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering some financial health questions. This is not an offer or guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you receive could be based on different conditions.
Application process
Do I qualify for funds?
You can apply for an company 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)
- must show at least six months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a couple minutes, and an experienced business credit specialist will be in touch to guide you through the process.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer in just one hour – as long as you submit your request at quality company time and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statement, we’ll provide the decision in just 1 company day.
For Larger Business Loans ($100K up to $500,000) we may be likely to offer you with pre-approval conditional to your application within six hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Certain agreements have been approved in just 24 hours.
The most efficient method is to make sure you apply during standard company hours. You can also permit us to use the advanced bank verification system link to instantly verify your bank information online. If you upload documents from your account accounts, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually offer a response in one hour if you apply during standard business timings and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statement, we’ll offer an answer in as little as the span of one business day.
For the Larger Business Loans ($100K to $500K) we might be capable of provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Certain deals have been approved within 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours and let us use the advanced bank verification system to instantly confirm your bank details online. If you opt to send us duplicates of your banking statements it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount we will consider a number of factors to determine how much we can lend you well-being for your company and the level of repayments that your company can afford. The total amount of the loan will be determined by the particular circumstances the business.
When you make an application for a certain amount, we consider a variety of variables to determine the well-being of your business as well as the amount of the repayments your company can support. The amount you receive from your loan will depend on the particular circumstances the business.
Fees & repayments
How much should you charge for a business loan?
If you decide to apply for one of our company loan, we will assess the risk assessment for your business and provide you with a customised offer that includes loan amount, term and the interest rates. The business loan is an upfront-priced loan therefore you will be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I will be charged?
Business loan interest rates differ based on various variables like the amount to be of money borrowed, the company assets the money are used to purchase, the industry the business operates in, the long the company has been in operation and in the event that the business has sufficient cash flow to cover the loan, as well as the general well-being and creditworthiness of the business.
What are the cost?
There are no hidden costs for our company loans. You’ll know exactly how much you need to pay, and when, from the first day. There’s no compounding interest and no extra fees (as long as you make your payments on time).
We don’t charge an application fee. You can make an application for loans with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan early?
You may choose to pay back all of your advance loan at any time.
If you choose to pursue this option, please call our helpful business loans professionals. They will provide you with details for 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 date of early payout and 1.5 percent of the principal remaining plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing how we collect data, process, exchange and protect your information, is of paramount importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our customers and security. We make use of an advanced banking verification system to immediately confirm your bank account information online, allowing us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from an asset that they own to make the funding. The asset can be an asset belonging to the personal, like the family home or a business asset such as a truck or other piece of machinery.
The vast majority of banks, including the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, your asset may be transferred to the lender. In essence it’s means of securing new financing making use of the value of what you already own.
Are I require security to get a business loan?
For loans that exceed $150K, there is no requirement for asset security in advance to gain access to the funds, however we require a personal guarantee. need an individual guarantee. If you adhere to the terms of your loan (as detailed in your loan contract) the security of assets is not needed. For loans that exceed $150,000, generally, there is an individual ensure and security is provided in the form of an asset charge.