FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Knoxfield Small Business Loans
Let me know how you can avail the Knoxfield Small Business Loans
Knoxfield unsecured loans offers amounts 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.
How is what makes the Unsecured Loan different from an traditional company loan?
The application to this Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and the money could be on your account within 24 hours. Traditional company loans are based on an annual interest rate along with other charges and fees. This company loan is an upfront priced loan which means you be aware of the total amount due, which includes the interest, fees and charges. This is then broken down into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company purpose including control of cash flow company remodels and marketing to purchase inventory, new equipment, as general working capital and much more. The loan cannot be used for personal use.
About larger Knoxfield Business Loans
What is the Larger Knoxfield Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been operating for a minimum of 3 years and generate an annual revenue of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be used for?
A Business Loan of a larger size can be used to fund almost every company purpose including business remodeling, buying inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This can be done in the form of a charge against assets, which could also include registration in the PPSR or making as a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally based rather than specifying security over a particular asset. The person signing the guarantee is personally responsible if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR permits priority over personal property to be assigned according to the date a security interest has been registered.
Caveats are legal document that is filed to offer an official notice of a claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help make the process. We might be able to make this decision without a credit check and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial health checks. It’s not an offer or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer you are offered could be on different conditions.
The 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, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 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 - $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a few minutes and a dedicated business lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s License) and an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent as well as 12 months of bank records, IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we can often provide an answer within one hour if you submit your request in standard business time and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements , we are able to provide the decision in as little as the span of one business day.
For the Larger Business Loan ($100K and up) we may be likely to provide you with conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Certain transactions have received approval within less than 24 hours.
The fastest way is to make sure you apply during normal company hours. Also, allow us to use the advance bank verification to confirm your bank details online. If you send us documents from your account statements it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we usually provide an answer within one hour, provided you apply at standard business hours and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements, we are able to provide a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we might be capable of provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however this can be faster depending upon the circumstances for each application. Certain transactions have received approval within the space of 24 hours.
The quickest method is to ensure you apply during standard business hours, and allow us to use our modern bank verification to verify your bank account information online. If you opt to upload documents from your account statements, it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of elements for determining the well-being that is your company and the extent of repayments your company can afford. The amount you receive from your loan will be contingent on the specifics the business.
When you make an application for a set amount, we take into consideration a variety of factors to assess your well-being of the company as well as the amount of repayments your business can afford. The total amount of your loan will depend on the particulars the company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to request the business loan, we’ll assess the risk assessment that you have for your company and provide you with a customised offer that includes the amount of the loan, the duration and interest rates. The company loan is a loan that is priced upfront and you’ll 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’m charged?
Business loan interest rates depend on several variables like the amount to be that is borrowed, what business assets the money will be used for as well as the field the business operates in, the long the business is in operation and what percentage of the business has enough cash flow to fund the loan, and also the overall well-being or financial standing of the company.
What are the costs?
There are no hidden costs with our company loans. You’ll know precisely how much you need to pay, and when, starting from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You can request a credit loan 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. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan earlier?
You can repay all of your loan early at any time.
If you are deciding to take this route, please speak to our friendly business credit specialists. They’ll provide you with details on repayment along with an early payout estimate. This is calculated as the total of the principal remaining plus any accrued interest as of the time of the early payout, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To ensure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing the ways we gather data, process, exchange and ensure the security of your information is crucial and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We employ a highly sophisticated bank verification system to instantly verify your bank account information online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner utilises an asset they own to obtain the funding. The asset may be an asset belonging to the personal, like the family home, or a business asset like a truck or piece of equipment.
The vast majority of the lenders including the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan then the asset might be offered for sale by the lender. In essence, it’s means of securing additional financing using the value of what you already have.
Do I require security for an business loan?
For loans of up to $150,000, no asset security is required upfront to access the money but we do need a personal guarantee. If you adhere to your loan obligations (as detailed in your loan contract document), asset security will never be required. For loans over $150K generally, you are able to get the option of a personal ensure and security in the form an asset charge.