FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Kenepuru Small Business Loans
Let me know how you can avail the Kenepuru Small Business Loans
Kenepuru unsecured loans provides amounts of 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 makes what makes the Unsecured Loan different from the traditional business loan?
Apply for your Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and funds may be in your account in 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. The business loan is an upfront priced loan which means you be aware in advance of the total amount to be paid, including any fees, charges or charges. This is then broken down into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business use, including control of cash flow company renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Kenepuru Business Loans
What is the Larger Kenepuru Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to be operating for at least three years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A larger company loan can be used for almost all company purpose including company renovations, to purchase equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is in the form of a charge over assets and can be registered with the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally in nature rather than specifying security over an asset. The person who is signing the ensure is personally accountable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR grants the priority of personal property assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document lodged to offer notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval to smooth out the process. We might be able to do this without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial well-being questions. It is neither an offer nor a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could have different terms.
Do I qualify for funds?
You can apply 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 worth of trade (for 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 quick and simple. Complete the online form within a couple minutes, and a dedicated company credit specialist will call you to guide you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent twelve months bank statement, an IRD statement Last 2 years’ finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we can often provide an answer in just one hour, provided you apply during quality company time and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements , we are able to provide a decision within just one business day.
For the Larger Business Loan ($100K and up) we might be in a position to provide the conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take 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 effective method can be make sure you apply during standard business hours. Also, permit us to use the advance bank verification to check your bank’s information online. If you choose to upload copies of your bank statement, it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within an hour if you submit your request at standard business time and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statement, we’ll offer an answer within the span of one business day.
For the Larger Business Loans ($100K or more) we might be likely to offer you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this could be shorter based upon the circumstances for each application. Certain deals have been approved in the space of 24 hours.
The quickest method would be to make sure you apply during normal business hours. You can also allow us to use the sophisticated bank verification to confirm your bank details online. If you decide to upload duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a specific amount we look at a variety of factors in order to assess how much we can lend you well-being for your company and the extent of payments your business can afford. The amount you receive from your loan will depend on the particular circumstances the company.
When you make an application for a particular amount, we consider a variety of aspects to assess how much we can lend you such as well-being of your company and the level of repayments that your business is able to afford. The total amount of your loan will depend on the specifics of your business.
Fees & repayments
What is the cost for a business loan?
If you decide to request one of our company financing, we’ll assess the risk profile of your business and provide you with a tailored offer that includes the amount of the loan, the duration and the interest rates. It is a company loan is an upfront-priced loan so you will know in advance the total amount payable including any charges or interest.
What is the basis for the rate I am charged?
The interest rates on company loans rates differ based on various factors like the amount of money borrowed, the company assets the money will be used for and the sector the company is operating in, how long the company is in operation and in the event that the business has enough cash flow to fund the loan, and the general well-being or financial standing of the company.
What are the costs?
There aren’t any hidden costs with our company loans. You’ll know precisely what you be required to pay and when, right from day one. There’s no compounding interest, and no additional fees (as as you make your payments on time).
We do not charge an application fee. You are able to apply for a loan no cost upfront or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay out the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you decide to take this route, please contact our helpful business lending experts. They will provide you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal amount remaining plus any accrued interest as of the time of early payout and 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
To make sure you do not miss due dates and also to be in line with your cash flow general, we offer repayments that are either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of huge importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account details online so we can offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner utilises assets they own to get the funding. The asset could be an individual property, such as the family home or it could be a company asset like a truck as well as a piece of machine.
The vast majority of the lenders even the big banks, tend 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’s means of securing new funding using the value of what you already have.
Should I require security to get an business loan?
For loans of up to $150K, there is no requirement for asset security before you can access the money however, we require a personal guarantee. need a personal guarantee. If you adhere to the loan terms (as specified in your loan contract document) the security of assets will never be required. For loans that exceed $150K, generally there is an individual guarantee and security is provided in the form of charges on assets.