FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Kentlyn Small Business Loans
Tell me more about Kentlyn Small Business Loans
Kentlyn unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
Apply for this Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and funds may be available in just 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. Our business loan is an upfront priced loan which means you be aware of the total amount due, which includes any interest, fees or charges. This is then broken down into either weekly or daily repayment figure.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company need, such as the management of cash flow, company renovations, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available to fund personal expenses.
Concerning Larger Kentlyn Business Loans
What is the Larger Kentlyn Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been in operation for at least 3 years and generate an annual revenue of $700K. Your business 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 of proving at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used for almost every business reason, such as company improvements, purchasing new equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. It is usually as a result of an charge on assets, and could include the registration of this with the PPSR or making as a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is general in nature, rather than defining security over a particular asset. The person signing the guarantee is personally liable in the event that the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR gives preference over private property assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal document filed to provide an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan of more than $250,000 we can offer an initial pre-approval that will help smooth out the process. It is possible to apply for this without credit checks and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial well-being questions. It is not an offer of credit or guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer that you might receive could have different conditions.
Application process
Can I be eligible for funding?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a few minutes and an experienced company expert in lending will contact you to help you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s License), a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Information on the application including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer in just one hour – as long as you apply in standard business timings and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements , we’ll be able to provide an answer in as little as 1 company day.
For Larger Business Loans ($100K to $500K) we could be in a position to offer you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Some offers have been approved in just 24 hours.
The quickest method can be ensure you apply during normal business hours. Also, let us use the advanced bank verification system to verify your bank account information online. If you opt to send us duplicates of your banking statement, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we can often offer a response in one hour – provided you submit your request during standard business time and permit us to use the bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements, we’ll be able to offer a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of provide you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this can be faster depending on the specifics of each application. Some transactions have received approval within the space of 24 hours.
The fastest way can be make sure you apply during normal business hours. You can also permit us to use the advanced bank verification system link to verify your bank information online. If you upload the copies of bank statements it will take a little longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of factors in order to assess how much we can lend you health that is your business and the amount of payments your company is able to afford. The total amount of your loan will be contingent on the specific circumstances the company.
When you apply for a set amount, we consider a variety of aspects to assess how much we can lend you such as well-being that is your company and the amount of payments your company is able to afford. The amount you receive from the loan will be determined by the specific circumstances the company.
Fees & repayments
What is the cost for an company loan?
If you decide to apply for one of our business loans, we’ll assess the risk profile the company and provide you with a customised offer, including loan amount, term and the interest rates. This company loan is an upfront priced loan and you’ll know in advance the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Interest rates for company loans rates differ based on various factors like the amount of money borrowed, the business assets the funds are used to purchase, the industry the company operates in, how long the company has been operating as well as in the event that the business has enough cash flow to support the loan, and the general health and creditworthiness of the company.
What are the costs?
There aren’t any hidden costs with our business loans, and you’ll know precisely what it is that you need to pay, and when, right from the day you sign up. There’s not any compounding interest and no additional fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You are able to request a credit loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You can choose to repay the entire amount of your loan at any point in time.
If you decide to take this route, please call our helpful business loan experts. The experts will offer you with repayment details and an early payment figure. The figure will be calculated as the sum 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 fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss payments and to work 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 information be protected?
Security of your data, and knowing how we collect, use, exchange and safeguard your data, is of huge importance and a vital 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 personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We employ a highly sophisticated bank verification system to immediately confirm your bank account information online. This allows us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a business owner utilises the assets they have to secure the funding. The asset could be an asset belonging to the personal, like the family home, or a business asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, including the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then the asset could be sold by the lender. In essence, it is a way of securing new financing using the worth of the asset you already own.
Are I need security to get an business loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access However, we do require a personal guarantee. If you adhere to the terms of your loan (as stated in the loan contract), asset security will never be required. For loans that exceed $150K, generally there is the option of a personal guarantee and security is provided in the form of a charge over assets.