FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Kelburn Small Business Loans
Tell me more about Kelburn Small Business Loans
Kelburn 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 per day or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
Apply to this Small Business Loan in under 10 minutes via the internet or over the phone, receive an instant response and have the funds available in just 24 hours. Traditional company loans refer to an annual interest rate plus other fees and charges. The company loan is an upfront priced loan which means you know in advance the total amount payable including any fees, charges or charges. This is then broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company purpose including managing cash flows, company remodeling, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used for personal use.
About the Larger Kelburn Business Loans
What is the Larger Kelburn Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for a minimum of 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funds for?
A Business Loan of a larger size can be used for almost all company purpose including business remodeling, buying equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This is by way of charge on assets, and could include the registration of this with the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally in nature rather than stipulating security over an asset. The person who is signing the ensure is personally liable in the event that the business creditor is unable to repay 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 granted to individuals who own personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be granted according to the date the security interest that is registered.
A caveat is a legal document lodged to offer an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000 we may be able to provide an initial pre-approval in order to simplify the process. We may be able to apply for this without a credit verification and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being questions. It is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you might receive could be on different conditions.
Do I have the right to receive funds?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for 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 fast and simple. Simply complete the online form in just a few minutes, and an experienced company lending specialist will call you to help you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence) and 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 consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent and 12 months of bank records, IRD statement and the last two years’ finalised financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within an hour, provided you apply in quality business hours and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements , we will be able to provide the decision within 1 company day.
For the Larger Business Loan ($100K up to $500,000) we may be likely to offer you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain deals have been approved within 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours and let us use the modern bank verification link to confirm your bank details online. If you choose to send us copies of your bank statements it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we typically provide an answer in just one hour if you make your application at normal business time and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statements, we will be able to offer a decision in as little as an business day.
For Larger Business Loans ($100K or more) We may be likely to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain agreements have been approved within just 24 hours.
The fastest way can be ensure you apply during standard business hours. Also, allow us to use our sophisticated bank verification to check your bank’s information online. If you choose to send us the copies of bank statements it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a particular amount, we consider a variety of aspects to determine what is the well-being that is your business and the extent of payments your business will be able to support. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
When you make an application for a set amount, we look at a range of elements to assess the well-being of the business and the level of payments your company can afford. The total amount of the loan will be determined by the particulars for your business.
Fees & repayments
How do you charge for an company loan?
If you decide to make an application for one of our company loan, we’ll assess the risk assessment of your business and provide you with a customised offer including loan amount, term and interest rates. A business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I will be charged?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, what company assets the funds will be used for and the sector the company operates in, how long the business has been running, in the event that the company has enough cash flow to fund the loan, as well as the general health or financial standing of the company.
What are the costs?
There are no hidden costs for our company loans. You’ll know precisely how much it is that you need to pay, and when, right from day one. There’s no compounding interest, and there are no additional charges (as long as you make your payments punctually).
We don’t charge an Application Fee. You can get a cash 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. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan early?
You may choose to pay back the total amount of your advance loan at any time.
If you choose to pursue this option, please talk to one of our helpful business loan experts. They’ll offer you with details on repayment and an early payout figure. This is calculated as the total of the remaining principal amount plus any accrued interest as of the time of the early payout and 1.5% of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To ensure you do not miss payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear how we collect information, use it, and exchange it, as well as ensure the security of your information is vital and is an essential part of our relationship 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 qualified for our dedication to security for our customers and privacy. We make use of an advanced bank verification system to immediately verify your bank account information online, allowing us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from an asset that they own to obtain the loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a business property like a truck or piece of equipment.
The majority of the lenders even the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan then the asset might be sold by the lender. In essence it is the process of securing new financing by using the worth of the asset you already have.
What do I need security to get an business loan?
For loans of up to $150,000, there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. need the personal guarantee. As long as you follow the loan terms (as stipulated in the loan contract), asset security is not required. For loans that exceed $150,000, typically, you will need the option of a personal ensure and security that is in the form a charge over assets.