FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Kingsley Heights Small Business Loans
Let me know more about Kingsley Heights Small Business Loans
Kingsley Heights unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
Apply to get the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and funds may be on your account within 24 hours. Traditional company loans reference an annual rate of interest together with additional fees and charges. We offer a company loan is a loan that is priced upfront therefore you’ll know in advance the total amount payable including any fees, charges or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business purpose including control of cash flow company remodels and marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal use.
Concerning Larger Kingsley Heights Business Loans
What is the Larger Kingsley Heights Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funds for?
A Larger Business Loan can be used for nearly any business need, including company improvements, purchasing new equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. This is by way of charge against assets and can be registered with the PPSR or filing a caveat.
A director’s or personal ensure is a promise to repay a loan which is general in nature, rather than stipulating the security of a specific asset. The person signing the ensure is personally responsible if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR gives the priority of personal property granted in accordance with the date on which a security interest has been registered.
A caveat is a legal document lodged to offer the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan of $250,000 or more we may be able to provide a preliminary pre-approval to help make the process. We may be able to get this done without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial health checks. It is not an offer or guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer you might receive could be subject to different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and a dedicated company credit specialist will be in touch to help you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent twelve months bank statement, an IRD statements Last 2 years’ finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we typically provide a response in one hour if you submit your request within quality company timings and let us utilise the bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statement, we’ll provide the decision in just an company day.
If you are applying for a Larger Business Loan ($100K and up) we might be able to provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain agreements have been approved in less than 24 hours.
The most efficient method can be ensure you apply during standard company hours, and permit us to use the advance bank verification link to verify your bank account information online. If you opt to upload documents from your account statement, it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we typically provide a response in one hour if you submit your request at standard business timings and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statement, we’ll offer a decision in just 1 business day.
For the Larger Business Loans ($100K or more) we could be able to offer the conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Some agreements have been approved in less than 24 hours.
The fastest method would be to make sure you apply during normal business hours, and let us use the advanced bank verification system to check your bank’s information online. If you decide to upload the copies of bank statement, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a specific amount we consider a variety of factors for determining how much we can lend you well-being for your business and the extent of repayments that your business is able to afford. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
When you submit an application for a set amount, we take into consideration a variety of aspects to assess the health of your business as well as the amount of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the particular circumstances the business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to apply for business loans with us business financing, we’ll assess the risk assessment for your company and provide you with a tailored offer that includes loan amount, term and the interest rates. The company loan is a loan that is priced upfront therefore you will know the exact amount payable including any charges or interest.
What determines the rate that I will be charged?
The interest rates on company loans rates vary due to factors like the amount of money that is borrowed, what business assets the money are used to purchase as well as the field the business is operating in, how long the business is in operation and how long the business has enough cash flow to pay for the loan, as well as the general health or creditworthiness of the business.
What are the cost?
There are no hidden fees for our business loans, and you’ll know exactly how much you need to pay, and at what time, from the first day. There’s no compounding and no extra 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 with with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You may choose to pay back all of your advance loan at any time.
If you choose to pursue this option, please call our helpful company credit specialists. The specialists will provide you with details on repayment and an early payment figure. The figure will be calculated as the sum of the principal balance and the accrued interest up to the time of early payment and 1.5% of the principal balance and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we provide payments that are either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing how we collect data, process, exchange and safeguard your data, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal financial information 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 to immediately verify the bank account details online to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner borrows from the assets they have to obtain the funding. The asset may be a personal asset like the family home, or a business asset such as a truck or piece of equipment.
The majority of the lenders including the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan, then your assets could be taken over by the lender. In essence it is an opportunity to secure new financing by taking advantage of the value of what you already have.
Are I require security for a business loan?
For loans up to $150K it is not necessary to secure assets before you are able to access the money but we require a personal guarantee. require a personal guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract) the security of assets is not needed. For loans over $150K generally, you are able to get an individual guarantee and security in the form a charge over assets.