FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Kippa-Ring Small Business Loans
Let me know about the Kippa-Ring Small Business Loans
Kippa-Ring unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from an traditional company loan?
It is possible to apply for your Small Business Loan in under 10 minutes over the phone, receive an instant response and have the funds in your account in 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. The business loan is an upfront priced loan so you will know in advance the total amount to be paid, including any interest, fees or charges. Then, it is broken down into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business reason, such as cash flow management, company improvements, advertising for purchasing inventory or new equipment, or as general working capital and so much more. The loan is not available for personal reasons.
About larger Kippa-Ring Business Loans
What is the Larger Kippa-Ring Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5% 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 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) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be used for?
A larger business loan can be used for almost every business reason, such as company renovations, to purchase equipment or inventory as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It’s by way of charge against assets, and could include registering this with the PPSR or the registration of as a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is general in nature rather than defining the security for a particular asset. The person who signs the guarantee is personally liable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
A caveat is a legal document that is filed to provide notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan of $250,000 or more we can offer an initial pre-approval in order to simplify the process. We could be able to make this decision without credit checks and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial well-being checks. It’s not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you might receive could be subject to different terms.
Application process
Do I have the right to receive funds?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a couple minutes, and a dedicated company lending specialist will contact you to guide you through the process.
To apply for up $100,000, you’ll need identification details (valid Driver’s License), a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent, 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within one hour if you make your application in standard business times and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statements , we are able to provide the decision in just 1 business day.
For the Larger Business Loan ($100K up to $500,000) we could be in a position to provide the conditional pre-approval within about 6 hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved in 24 hours.
The quickest method is to ensure you apply during standard company hours and allow us to use the advance bank verification link to instantly verify your bank account information online. If you decide to send us copies of your bank accounts, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour if you submit your request within standard business hours and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statement, we’ll provide the decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Some transactions have received approval in less than 24 hours.
The fastest method is to ensure you apply during normal business hours. You can also let us use the advance bank verification link to verify your bank information online. If you decide to send us documents from your account statement, it will take a little longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of aspects in order to assess the well-being that is your company and the level of repayments your business is able to afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your company.
If you apply for a specific amount we look at a range of factors to determine your 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 specific circumstances that are unique to your company.
Fees & repayments
How do you charge for an company loan?
If you decide to apply for business loans with us business financing, we will assess the risk profile that you have for your company and provide an individualised offer that includes loan amount, term and interest rates. A business loan is an upfront cost loan so you will be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I am charged?
Interest rates for company loans rates vary due to factors such as the amount that is borrowed, the company assets the money are used to purchase, the industry the business is in, how long the business has been running, what percentage of the company has sufficient cash flow to pay for the loan, and general health or creditworthiness of the business.
What are the fees?
There are no hidden costs for our business loans, and you’ll know precisely how much you need to pay and at what time, from the day you sign up. There’s no compounding interest and no additional fees (as as you make your payments punctually).
We do not charge an application fee. You can request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the expenses involved with the setting up and management of the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of the loan at any point in time.
If you do decide to take this route, please call our helpful business loans specialists. They’ll offer you with the details of your repayment and an early payment figure. It will be calculated using the total of the principal amount remaining and any accrued interest at the date of early payout, plus 1.5% of the remaining principal plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear how we collect the information we collect, use, share and secure your information, is crucial and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a business owner makes use of an asset they own to get the loan. The asset could be a personal asset like the family home, or an company asset such as a truck or piece or equipment.
The vast majority of lenders, not just the major banks, prefer to secure loans against an asset. If you’re struggling to pay back the loan then the asset could be transferred to the lender. In essence it’s means of securing additional financing using the worth of the asset you already own.
Are I require security to secure an company loan?
For loans that exceed $150K, it is not necessary to secure assets before you are able to access the money However, we require a personal guarantee. need the personal guarantee. In the event that you fulfill your loan obligations (as specified in your loan contract) Asset security will never be required. For loans that exceed $150,000, generally, there is personal ensure and security in the form the charge of assets.