FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Kedron Small Business Loans
Tell me what you think of the Kedron Small Business Loans
Kedron unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from a traditional business loan?
Apply to the Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and have the funds on your account within 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. Our business loan is an upfront priced loan and you’ll know in advance the total amount to be paid, including any fees, interest or charges. This is then broken down into weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company purpose including the management of cash flow, business improvements, advertising to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal purposes.
About the Larger Kedron Business Loans
What is the Larger Kedron Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be operating for a minimum of 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funds for?
A large company loan can be used for nearly every business reason, such as company improvements, purchasing equipment or inventory as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. This can be done in the form of a charge on assets and can include registration on the PPSR or filing as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally based rather than defining the security for a particular asset. The person signing the guarantee is personally liable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
An affidavit is an official document filed to offer an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of more than $250K, we may offer an initial pre-approval that will help 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 made based on an initial evaluation that involves the answer to a series of financial well-being checks. It is not an offer or guarantee of financing. Acceptance without condition is subject to a full credit assessment and any offer you may receive may be based on different terms.
Application process
Do I qualify for 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 business (with a valid NZBN/IRD)
- can demonstrate 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 to $500K)
How do I apply?
The application process is fast and simple. Complete the online form in few minutes and an experienced business expert in lending will be in touch to help you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details for application including credit consent, 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we can often provide a response in one hour – as long as you apply at standard company times and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we are able to provide a decision in just 1 business day.
For the Larger Business Loan ($100K up to $500,000) we might be likely to offer the conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the particular circumstances of each application. Some offers have been approved within 24 hours.
The most efficient method would be to make sure you apply during normal business hours, and permit us to use the advance bank verification to verify your bank account information online. If you decide to upload the copies of bank accounts, it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) We can usually provide a response in one hour, provided you make your application at standard business time and allow us to use the bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements we can provide an answer within an business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be in a position to offer you with a conditional pre-approval in around six hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some transactions have received approval within less than 24 hours.
The fastest method is to ensure you apply during normal business hours and allow us to use the sophisticated bank verification link to verify your bank account information online. If you choose to upload copies of your bank statement, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a specific amount we consider a variety of factors to determine what is the well-being of the company and the level of repayments your business can afford. The total amount of your loan will be contingent on the particular circumstances the business.
If you apply for a specific amount we take into consideration a variety of factors to determine the well-being of your business as well as the amount of repayments that your business can afford. The total amount of your loan will be determined by the specifics the company.
Fees & repayments
What is the cost for a business loan?
When you request business loans with us company loans, we’ll assess the risk profile that you have for your business and offer you with a customised offer, including loan amount, term and interest rates. This business loan is a loan that is priced upfront which means you know the exact amount you will have to pay, including charges or interest.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates differ based on various factors including the amount that is borrowed, what company assets the funds are used to purchase and the sector the business operates in, how long the business has been in operation, in the event that the company has enough cash flow to cover the loan, as well as the overall health and creditworthiness of the company.
What are the fees?
There are no hidden fees with our company loans, and you’ll know precisely what it is that you need to pay, and when, right from the first day. There’s no compounding interest, and no additional fees (as long as you make your payments punctually).
We do not charge an application fee. You can request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan in advance?
You can decide to repay the entire amount of your loan early at any time.
If you do decide to take this route, please speak to our friendly business loan professionals. They will offer you with the details of your repayment and an early payout figure. This is calculated as the total of the principal balance and the accrued interest up to the date of early payout plus 1.5% of the remaining principal plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear how we collect information, use it, and exchange it, as well as 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 use industry recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We employ an exceptionally sophisticated bank verification system that allows you to instantly verify your bank account details online. This allows us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an business owner makes use of the assets they have to obtain a loan. The asset could be a personal asset like the family home or a company asset such as a truck or other piece of machinery.
The majority of lenders, not just the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan, your asset may be sold by the lender. In essence, it is a way of securing new financing by taking advantage of the value of what you already own.
What do I need security for an business loan?
For loans of up to $150K, there is no requirement for asset security in advance to gain access to the funds but we do require an individual guarantee. If you adhere to your loan obligations (as stipulated in your loan contract), asset security is not needed. For loans over $150,000 generally, you are able to get the option of a personal guarantee and security in the form of the charge of assets.