FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Upper Kedon Small Business Loans
Let me know more about Upper Kedon Small Business Loans
Upper Kedon unsecured loans provides amounts 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 the Unsecured Loan different from an traditional business loan?
It is possible to apply for the Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the funds could be in your account in 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. We offer a business loan is a pre-paid loan which means you be aware in advance of the amount you will have to pay, including the interest, fees and charges. This is then divided into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company use, including the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, as general working capital and so much more. The loan cannot be used for personal use.
About Larger Upper Kedon Business Loans
What is the Larger Upper Kedon Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to have been operating for at least three years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost any business purpose including company improvements, purchasing new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. This is by taking a charge over assets, which could also include the registration of this through the PPSR or filing a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is general in nature, rather than stating security over a particular asset. The person who is signing the guarantee is personally responsible if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR gives priority over personal property to be assigned according to the date the security interest was registered.
Caveats are legal document filed to offer the legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250,000 it’s possible to offer an initial pre-approval in order to simplify the process. We could be able to make this decision without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes answering a couple of financial health questions. It’s in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer that you receive could be on different conditions.
Application process
Do I have the right to receive funds?
You may be eligible 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)
- you must demonstrate at minimum 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (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 few minutes and an experienced company lending specialist will contact you to guide you through the process.
To apply for up $100,000, you’ll require ID details (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent as well as 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials including Aged Payables, Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we can often provide an answer in just one hour, provided you apply in standard company time and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statement, we’ll offer the decision within just 1 business day.
For the Larger Business Loan ($100K or more) we may be able to provide you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain deals have been approved in 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard company hours. Also, allow us to use our advanced bank verification system link to instantly verify your bank information online. If you send us copies of your bank statement, it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour, provided you submit your request at standard business time and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statement, we’ll offer an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be able to offer the conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be faster depending on the specifics of each application. Some deals have been approved in just 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours, and permit us to use the advance bank verification to instantly verify your bank account information online. If you upload documents from your account accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of variables that determine what is the well-being that is your company as well as the amount of payments your company can afford. The amount you receive from your loan will be contingent on the specifics the company.
If you apply for a set amount, we look at a range of aspects to assess your well-being that is your business and the extent of payments your company is able to afford. The amount you receive from the loan will be determined by the particulars for your company.
Fees & repayments
How much should you charge for an business loan?
When you apply for the business loans, we’ll assess the risk profile of your company and offer an individualised offer including the amount of loan, the term and interest rates. It is a business loan is an upfront-priced loan therefore you will know in advance the total amount payable including any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates depend on a variety of factors including the amount of money borrowed, the company assets the funds will be used for, the industry the company is in, how long the business is in operation as well as in the event that the business has enough cash flow to pay for the loan, as well as the overall well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our business loans. You’ll know precisely what you be required to pay and when, starting from the very first day. There’s not any compounding interest and there are no additional charges (as as you make your payments in time).
We don’t charge an Application Fee. You are able to apply for a loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us 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 advance loan at any time.
If you decide to pursue this option, please call our helpful business credit professionals. They will offer you with the details of your repayment and an early payout figure. It will be calculated using the total of the remaining principal amount and any accrued interest at the date of early payout plus 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing the ways we gather data, process, exchange and 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 employ industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We utilise a sophisticated bank verification system link to immediately confirm your bank account information online so we can offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner uses assets they own to obtain the funds for a loan. The asset could be an individual property, such as the family home or it could be a business asset such as a vehicle as well as a piece of machine.
The majority of banks, even the big banks, tend to guarantee loans against an asset. If you’re struggling to pay back the loan, then your assets could be taken over by the lender. In essence it is means of securing additional financing taking advantage of the value of what you already own.
Are I need security to get an business loan?
For loans that exceed $150,000, the requirement for asset security is not required before you can access the money However, we do require the personal guarantee. In the event that you fulfill your loan obligations (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally, there is personal ensure and security in the form charges on assets.