FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kelston Small Business Loans
Let me know how you are able to avail the Kelston Small Business Loans
Kelston unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from the traditional business loan?
Apply for this Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and funds may be in your account in 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. The business loan is a cash-based loan so you will be aware of the total amount to be paid, including any fees, interest or charges. Then, it is divided into weekly or daily repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business purpose including cash flow management, business improvements, advertising to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal use.
About the Larger Kelston Business Loans
What is the Larger Kelston Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to have been trading for at least 3 years with an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be utilised?
A larger business loan is a great option for almost any business reason, such as company renovations, to purchase inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. This is by way of charge against assets, and may be registered on the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature rather than defining security over a particular asset. The person who signs the ensure is personally accountable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR permits the priority of personal property granted according to the date the registration of a security interest.
An affidavit is an official document lodged to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000, we may offer a preliminary pre-approval to help simplify the process. We could be able to do this without a credit check and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial well-being checks. It is in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to a full credit assessment and any offer you may receive may be based on different terms.
The application process
Do I have the right to receive funds?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and an experienced business credit specialist will call you to assist you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we can often provide an answer within one hour – as long as you apply during quality company hours and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statements we can offer a decision within just the span of one business day.
For the Larger Business Loan ($100K and up) we may be likely to offer you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved in 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal business hours. Also, permit us to use the modern bank verification to check your bank’s information online. If you choose to send us copies of your bank statements , it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) We can usually provide an answer in just one hour – provided you apply during standard business time and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements, we will be able to offer an answer in as little as an business day.
For Larger Business Loans ($100K up to $500,000) We may be able to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The most efficient method would be to make sure you apply during normal business hours. You can also allow us to use our sophisticated bank verification link to instantly check your bank’s information online. If you choose to upload documents from your account accounts, it can take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a certain amount, we take into consideration a range of factors in order to assess your health of your business and the amount of payments your business can support. The amount you receive from the loan will be determined by the specific circumstances for your company.
If you apply for a set amount, we take into consideration a variety of factors to determine your well-being of your business and the level of repayments that your business is able to afford. The amount you receive from the loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for the company loans, we’ll assess the risk assessment that you have for your company and offer you with a customised offer including loan amount, term and interest rates. This company loan is an upfront priced loan therefore you will be aware of the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
The interest rates on company loans rates depend on several factors including the amount borrowed, the business assets the funds are used to purchase in addition to the industry that the company is operating in, how long the company is in operation for, in the event that the business has enough cash flow to fund the loan, and also the general health and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges with our business loans, and you’ll know exactly how much it is that you need to pay, and when, from the day you sign up. There’s no compounding and no additional fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can make an application for loans with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can choose to repay all of your loan early at any time.
If you do decide to do this please speak to our friendly business loan specialists. The professionals will provide you with details for repayment and an early payout figure. This is calculated as the sum of the remaining principal amount and accrued interest to the time of early payout in addition to 1.5% of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear the ways we gather data, process, exchange and safeguard your data, is of paramount importance and an integral 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 personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We utilise a sophisticated bank verification system that allows you to instantly verify the 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)?
Asset-based borrowing is when a company owner uses assets they own to make the funds for a loan. The asset could be an asset belonging to the personal, like the family home, or an business property like a truck or piece or equipment.
The vast majority of lending institutions, including the banks with the biggest size, prefer to make loans secured by assets. If you’re having trouble paying back the loan, the asset might be taken over by the lender. In essence, it is an opportunity to secure additional financing taking advantage of the value of what you already own.
Do I require security for a company loan?
For loans that exceed $150K, it is not necessary to secure assets in advance to gain access to the funds, however we require a personal guarantee. need the personal guarantee. If you adhere to your loan obligations (as specified in your loan contract) the security of assets is not required. If you take out loans in excess of $150,000 generally, you are able to get an individual ensure and security is provided in the form of charges on assets.