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1. Understand your finances
Having a basic understanding of your financial position will help you make an informed decision. Reviewing a cashflow statement will show you what’s coming in and what’s going out. You’ll need to review:
  • Income
  • Net profit
  • Expenses including loan repayments
  • Future income
  • Future expenses
2. Know what you need it for
You’ll need to know exactly why you’re taking out a business loan before you borrow any money. This could be for:
  • Managing cashflow
  • Financing growth
  • Purchasing a vehicle
  • Purchasing equipment
3. Choose a loan amount

Choose a loan amount to cover the asset you’re purchasing or your cashflow. Decide your loan term based on what you can afford to repay each month according to your finance review. Your bank lender can help you by providing a detailed outline of your options.

4. Choose the right loan type

You will have the choice between a secured and unsecured loan.

Secured loans require an asset that you can offer the bank if you cannot pay your loan back – for example property or a vehicle. Rates are usually lower for a secured loan. 

Unsecured loans don’t require any assets. This means they are less secure (hence the name) and the rates are a little higher. Unsecured loans are designed for managing cashflow rather than purchasing an asset.

5. Ask about the fees
Most banks charge a number of fees on loans. Make sure you know what you’re signing up for. Kina Bank SME loans have the lowest rate in PNG and have removed upfront application and documentations fees. Fees to look out for include:
  • Application fees
  • Documentation fees
  • Account keeping fees
  • Early repayment fees
  • Exit fees
  • Valuation fees
6. Prepare your paperwork

Make sure you have your documents ready before you visit the bank. You can speak to one of our customer service representatives to help you apply in branch or at 180 1525 or kina@kinabank.com.pg.

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